In 2012, a staggering 50,000 Bitcoin (BTC) were stolen from the infamous Silk Road, an illicit acheronian web marketplace. Over the years, the worth of the stolen BTC skyrocketed to $3 billion, making it 1 of the astir important mysteries successful cryptocurrency.
However, astir a decennary later, a captious mistake by the thief led to a breakthrough successful the case, allowing the IRS-CI (Internal Revenue Service Criminal Investigation) to ace the puzzle.
CNBC has obtained exclusive footage that reveals how investigators meticulously connected the dots, yet starring to the unmasking of the perpetrator down the Bitcoin heist.
Silk Road Bitcoin Heist Unraveled
The communicative begins successful Athens, Georgia, an unsuspecting assemblage municipality acquainted with emblematic misdemeanors. On the nighttime of March 13, 2019, 28-year-old Jimmy Zhong, a section machine expert, made an antithetic 911 telephone to study the theft of hundreds of thousands of dollars’ worthy of Bitcoin from his home.
Per the report, the probe into the theft from Zhong’s residence initially yielded nary suspects. The Athens-Clarke County Police Department, inexperienced successful crypto-related cases, struggled to marque headway.
In a quest for answers, Zhong sought the assistance of section backstage researcher Robin Martinelli. Although not well-versed successful cryptocurrencies, Martinelli was determined to ace the case.
Martinelli meticulously examined Zhong’s extended location surveillance strategy and stumbled upon a important portion of evidence—a slender fig captured successful the footage from the nighttime of the crime.
Little did Zhong cognize that portion reporting his stolen Bitcoin, a squad of IRS agents worked tirelessly to lick the 2012 Silk Road hack.
However, the hacker’s individuality remained concealed until a tiny slip-up occurred. In September 2019, the hacker mistakenly transferred astir $800 worthy of BTC to a cryptocurrency speech that adhered to established banking regulations, including “know your customer” procedures.
To the investigators’ surprise, the relationship utilized for the transaction was registered successful Jimmy Zhong’s name, linking him to the stolen Silk Road funds. The IRS contacted the Athens-Clarke County Police Department, seeking collaboration to physique a coagulated lawsuit against Zhong.
United by a shared objective, Lt. Jody Thompson, IRS-CI peculiar cause Trevor McAleenan, and Shaun MaGruder, CEO of cyber quality institution BlockTrace, formed a team.
Armed with evidence, they obtained a national hunt warrant for Zhong’s residence. On November 9, 2021, a ample squad of officers raided Zhong’s home, delivering the shocking quality that helium was the premier suspect.
From Creator To Thief?
Investigations revealed that Zhong, an aboriginal coder allegedly progressive successful the improvement of Bitcoin since its inception successful 2009, had played a relation successful perfecting the technology.
In an ironic twist, a hacker progressive successful the instauration of Bitcoin had transformed into 1 of the astir salient BTC thieves successful history. Zhong was charged with ligament fraud, pleaded guilty, and received a condemnation of 1 twelvemonth and a time successful national prison, starting connected July 14, 2023.
Zhong could not clasp the illicit funds contempt his immense luck successful stolen BTC. The US authorities seized the assets, initiating a process for victims of the Silk Road hack to reclaim their mislaid Bitcoin.
However, nary claimants came forward, and the authorities sold the seized Bitcoin, with the proceeds apt to beryllium shared with the Athens-Clarke County Police Department arsenic a token of appreciation for their assistance.
In his connection to the judge, Zhong admitted that the stolen Bitcoin had made him consciousness important, but ultimately, his actions had lone benefited the authorities financially.
While the archetypal transgression of the Bitcoin theft from Zhong’s Athens residence remains unsolved, the apprehension and condemnation of Zhong person brought closure to 1 of the astir important cryptocurrency crimes of our time.
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