I'd completely forgotten this happened. Wild stuff.
this post was submitted on 18 Oct 2023
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Those chicks loved him for his personality, too. What a bummer. Hope they wait for him to get out.
In the end, Zhong didn’t get to keep the stolen bitcoin. The U.S. government seized those assets. Officials opened a process that allowed victims of the hack to apply to get their bitcoin back, according to a forfeiture document CNBC reviewed. Nobody came forward to claim the loot. That’s not surprising, given that users of Silk Road in 2012 were largely drug dealers and their customers.
Hilarious that they even tried
The gov probably was working in the silk road and wanted their bitcoins back... Very sus investigation especially when no one came to claim the bitcoins...
Wonder what job offers awaits this guy once he’s free next year
I don't see how the IRS had any jurisdiction in this case. Bitcoin is virtual currency which the Federal Reserve does not make. Technically you'd think the IRS could only come after you for physical printed money.
I can understand if they prosecuted him for actual cash they found which he hasn't paid tax on, but they have no right to take his digital bitcoin.
He needed a better lawyer.
What are you talking about? IRS comes after you for taxes you don't pay on property and on all sorts of income. If you have a debt written off, that's taxable income. If you acquire a hard drive worth $3b, that's taxable income.
Can someone summarise the story. God damn that was a long read and lost interest. What I gathered, Jimmy claimed a robbery of his bitcoins, who then transpired to be the robber?
He stole lots of Bitcoin by hacking silk road. One day someone stole a part of them (20 out of 50000) and he called the police which basically said though luck.
Meanwhile the us government was investigating on the theft and they noticed that he accidentally converted $800 from the stolen $3 billions using his real name.
They showed up at his home really friendly saying they're investigating about the Bitcoin theft and he opened everything. Unlocked his PC, showed them all the stash, then the liutenant specified which Bitcoin theft was investigating. Officers immediately placed a jigger on the unlocked PC to prevent automatic inactivity lock, guy was arrested.
Unfortunately the guy was one of the og Bitcoin devs in 2009 so he is filthy rich, got one year of prison for the crime of stealing those 3 billion dollars.
The us government said that anyone can ask back the stolen Bitcoin but nobody applied because those were dirty funds coming from the sales of drugs
An odd part of this story is that he hired a PI to figure out who stole Bitcoin from him. The PI figured out who it likely was and told Jimmy, he refused to believe it because he was friends with the thief.
He just wanted to feel loved and have friends but they were all only there for the money and stuff he bought for them.
Thank you 👍
The article you referred to appears to delve into the actions and subsequent consequences faced by Jimmy Zhong, a 28-year-old computer expert from Athens, Georgia. The narrative begins when Zhong reports a theft of a substantial amount of cryptocurrency from his residence, leading to an investigation unveiling one of the most significant cryptocurrency crimes in history ➊.
In 2012, an individual pilfered 50,000 bitcoins from Silk Road, an illicit dark web marketplace. The valuation of these stolen bitcoins soared over time to surpass $3 billion, marking one of the colossal mysteries within the cryptocurrency realm for many years. Nearly a decade post this heist, a grave mistake by the perpetrator enabled the IRS-Criminal Investigation division to resolve the case ➋.
Jimmy Zhong, known for his partying tendencies and also for his exceptional computer skills, was the person behind this massive theft. His downfall was linked to his report about the crypto theft, which was a cover-up, and his robust digital home surveillance system which perhaps played a part in his identification ➌.
Following his conviction in 2022, a raid on his Georgia residence led to the confiscation of approximately 50,676 bitcoins, then valued at over $3.36 billion. Zhong cooperated with the authorities and forfeited the stolen assets ➍.
This tale highlights a significant event within the cryptocurrency community and demonstrates the long-term investigative efforts that can span several years before reaching a resolution.
This could definitely be a neat movie to watch. Also that PI was a badass. Only one leg and working her ass of on this investigation. Shame they never found the thief that set this all off