The US Department of Justice (DoJ) has announced the confiscation of over $3 billion worth of bitcoins from a fraudster who allegedly defrauded the Dark Web's Silk Road store and stole more than 50,000 bitcoins.
The defendant pleaded guilty to the crime of electronic fraud that occurred and was committed a decade ago.
The fraudster could face up to 20 years in prison.
In a press release on Monday (November 7, 2022), the Department of Justice revealed the confiscation of more than 50,000 Bitcoins from scammer “James Zong” accused of defrauding the Silk Road store.
Bitcoin was initially seized about a year ago, on November 9, 2021, and was worth about $3.4 billion at the time.
According to the US Department of Justice in September 2012, this criminal allegedly defrauded the Silk Road store by setting up nine accounts to conceal his identity and being able to withdraw approximately 50,000 bitcoins.
When the Bitcoin Cash split in August 2017, which resulted in the creation of the cryptocurrency (BCH), Zong was given an additional 50,000 BCH, which he exchanged for 3,500 BCH.
Subsequently, the total bitcoin stock of the defendant at that time was 53,500 BTC.
The seizure was the largest financial forfeiture of the Ministry of Justice at the time and the second largest at the present time.
Zhong pleaded guilty to one count of telephone fraud on November 4, 2022.
The penalty, as we have indicated, may reach 20 years.
Meanwhile, the US government is seeking to confiscate 51,351 Bitcoin.
Damian Williams, the US Attorney for the Southern District of New York, said in a statement:
James Zong committed wire fraud over a decade ago when he stole nearly 50,000 bitcoins from the Silk Road.
For nearly ten years, the value of the lost bitcoin has ballooned to over $3.3 billion.
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