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US Court Sentences Silk Road Bitcoin Hacker to 1 Year in Prison

• US court sentenced James Zhong to one year in prison for stealing 50,000 Bitcoin (BTC) from the Silk Road.
• Zhong set up nine different Silk Road accounts and initiated 140 separate transactions to deceive the withdrawal mechanism.
• Officials also seized 51,351.89785803 bitcoin, precious metals and $661,900 in cash from a hidden safe found in Zhong’s home.

U.S Court Sentences Bitcoin Hacker

US District Judge Paul G. Gardephe sentenced James Zhong to a year in prison after learning about the government’s plans to sell 41,000 seized bitcoin (BTC).

Hack of Silk Road

By setting up nine different Silk Road accounts and initiating 140 separate transactions, Zhong was able to deceive the DNM’s withdrawal mechanism into sending 50,000 BTC to addresses under his control with no legitimate purchases on Silk Road. It is estimated that he obtained a net of over 50,000 BTC at a cost between 200 and 2000 BTC.

Seized Assets

When Bitcoin was split in August 2017, Zhong earned 50,000 Bitcoin cash (BCH), which he promptly traded for 3,500 BTC. In addition federal officials took 51,351.89785803 bitcoin along with a stockpile of precious metals and $661,900 in cash from his home in Gainesville Georgia which included a hidden safe uncovered after some blankets and popcorn were removed. 80% of RE&D Investments company with major real estate assets was also acquired by authorities from Zhong as well.

Teams Involved

New York Department of Justice ,the Internal Revenue Service (IRS),the Los Angeles Field Office of the IRS Criminal Investigation Division’s Western Cyber Crimes Unit ,and the Athens-Clarke County Police Department all worked together to catch 32-year-old Zhong who plead guilty to wire fraud charges against him .


In conclusion ,after being caught by multiple teams involved ,James zhonf was sentenced by U S judge Paul G Gardephe for stealing an enormous amount of money through deceptive means .