The U.S. Attorney’s Office for the Southern District of New York has announced the sentencing of an individual who pleaded guilty to wire fraud charges related to the “illegal acquisition” of bitcoin from the Silk Road marketplace in 2012.
In an April 14 announcement, the U.S. Department of Justice said James Zhong was sentenced to one year and one day in prison for carrying out a scheme to steal more than 51,680 bitcoins, Chung pleaded guilty to the charges in November 2022 and has been awaiting sentencing.
"Cybercriminals should heed this message: No matter how sophisticated your scheme, no matter how long it takes, we will track the money and hold you accountable," said U.S. Attorney Damian Williams. According to Williams, Chung stole BTC in 2012 and managed to conceal his crime for about 10 years before facing charges. In November 2021, U.S. authorities seized Chung’s bitcoin holdings at his Georgia home, finding most of the cryptocurrency in a floor safe and a computer in a popcorn jar. The coins were worth about $3.4 billion at the time.
The Silk Road marketplace, which has been closed for about a decade, has attracted the attention of U.S. authorities by allowing users to buy and sell illegal goods such as weapons and stolen credit card information. The platform's creator, Ross Ulbricht, was arrested in 2013 and is serving two life sentences without the possibility of parole.
