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50,676 Bitcoin seized from Silk Road fraudster

U.S. authorities found several thousand bitcoins believed to have been stolen from a former user of the platform.

By Mike Hesp
• 1 min read
50,676 Bitcoin seized from Silk Road fraudster

American authorities found several thousand bitcoins believed to have been stolen from a former user of the platform. The suspect has pleaded guilty.

Yesterday announced by the U.S. Department of Justice in New York the seizure of nearly 51,000 Bitcoin tied to Silk Road. The suspect, named James Zhong, pled guilty to wire fraud.

The Bitcoin obtained illegally in 2012

According to the prosecutor, he "illegally obtained these Bitcoin from Silk Road's dark web in 2012".

U.S. Attorney Damian Williams said: "This case shows we won't stop tracing the money, no matter how skillfully it's hidden, even down to a circuit board at the bottom of a popcorn tin."

In addition to the bitcoin holdings, the government also seized corporate shares and about US$661,900 in cash. Zhong had exploited a vulnerability in Silk Road's system in 2012 and then "stole about 50,000 BTC."

Silk Road was a darknet site launched in February 2011 and primarily focused on drug sales.

China also stepping up efforts to track illegally obtained BTC

The U.S. isn’t the only country chasing illicitly obtained Bitcoin. China has been pursuing illegally obtained BTC for years as well. In 2019, they seized nearly 200,000 BTC. The Bitcoin largely came from the PlusToken crypto scam.

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