James Zhong

James "Jimmy" Zhong is an American man who was convicted in 2022 for stealing over 51,680 bitcoin (then worth about $620,000;[1] value as of 2023 approximately $3.4 billion[3]) from the online black market Silk Road between 2012 and 2014.[4] Zhong, who was involved in the early development of bitcoin,[5] had found an error on Silk Road that allowed him to withdraw more funds than what was initially deposited.

James Zhong
Born
James Zhong

(1990-05-24)May 24, 1990[1]
Other namesJimmy Zhong
Alma materUniversity of Georgia (BS)
Years active2012–2022
Known forLargest theft of Bitcoin in US history
Conviction(s)Wire fraud
Criminal penalty1 year and 1 day imprisonment[2]
Date apprehended
November 9, 2021

Zhong managed to conceal his identity and elude detection for nearly 10 years. He lived a luxurious lifestyle, using tools such as cryptocurrency mixers to obscure the origin of the bitcoin he spent.[5]

In 2019, he made a mistake by transferring a small amount of stolen bitcoin to a cryptocurrency exchange that followed know-your-customer rules. The IRS's criminal investigation division then tracked him down.[5] On November 9, 2021, a raid on his Gainesville, Georgia home resulted in the seizure of about 50,676 bitcoin, then valued at over $3.36 billion.[6] Zhong cooperated with investigators, forfeited all of his bitcoin and pled guilty to one count of wire fraud.[7]

In 2023, Zhong was sentenced to a year and a day in prison.[2]

See also

References
  1. Sentencing Memorandum Submitted On Behalf of James Zhong
  2. Davis, Charles R. (14 Apr 2023). "Man gets prison time after feds discover $3.4 billion in stolen bitcoin hidden inside a Cheetos popcorn tin and underground safe". Business Insider. Retrieved 12 July 2023.
  3. "Southern District of New York | U.S. Attorney Announces Historic $3.36 Billion Cryptocurrency Seizure And Conviction In Connection With Silk Road Dark Web Fraud | United States Department of Justice". www.justice.gov. 2022-11-07. Retrieved 2023-10-19.
  4. "Southern District of New York | Silk Road Dark Web Fraud Defendant Sentenced Following Seizure And Forfeiture Of Over $3.4 Billion In Cryptocurrency | United States Department of Justice". www.justice.gov. 14 April 2023. Retrieved 12 July 2023.
  5. Tortorelli, Paige; Javers, Eamon (2023-10-17). "The secret life of Jimmy Zhong, who stole – and lost – more than $3 billion". CNBC. Retrieved 2023-10-19.
  6. Tortorelli, Paige (7 November 2022). "Feds announce seizure of $3.36 billion in bitcoin stolen a decade ago from illegal Silk Road marketplace—the second-largest crypto recovery". CNBC. Retrieved 12 July 2023.
  7. Voreacos, David (14 Apr 2023). "Theft of Bitcoin that topped $3 billion in value leads to one-year prison sentence for James Zhong: 'I always knew what I did was wrong'". Fortune. Retrieved 12 July 2023.
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