US DOJ announces seizure of $3.36B in cryptocurrency

The U.S. Division of Justice on Monday declared that policing $3.36 billion of bitcoin from a got” man “unlawfully got” more than 50,000 bitcoin from darkweb market Silk Street quite a long time back.

The U.S. Lawyer for the Southern Region of New York said that James Zhong of Gainesville, Georgia, confessed on November 4 to committing wire extortion in September 2012. The charge conveys a greatest sentence of 20 years in jail.

The request came nearly 12 months after policing 50,676.17851897 bitcoin, then, at that point, esteemed at more than $3.36 billion, from Zhong’s home, the assertion said. Authorities found the bitcoin in an underground floor protected and on a solitary board PC that was concealed under covers in a popcorn tin set in a restroom wardrobe.

Policing recuperated $661,900 in real money, 25 Casascius coins of bitcoin (esteemed at around 174 bitcoin), an extra 11.116 bitcoin and a small bunch of silver-and gold-shaded bars.

The whereabouts of this enormous measure of bitcoin was a secret for very nearly 10 years, U.S. Lawyer Damian WIlliams said in the delivery.

It was the biggest digital currency seizure throughout the entire existence of the U.S. DOJ at that point, and today stays the division’s second-biggest monetary seizure, it expressed.

Silk Street was a web-based underground market that was sent off in 2011 by the then-unknown “Fear Privateer Roberts” (later revealed as Ross Ulbricht). It was famously known for tax evasion exercises and for trading unlawful medications with bitcoin. In under two years, the Silk Street was closed somewhere near the U.S. government, and by 2015, Ulbricht was consistently sentenced by a jury and condemned to life in jail.

“This case shows that we won’t quit following the cash, regardless of how skillfully covered up, even to a circuit board in the lower part of a popcorn tin,” Williams said.

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