Bitcoin stash: $3 billion was stashed here

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Stolen bitcoinsA crypto scammer hid $3 billion under the floor

The US Internal Revenue Service seized a gigantic crypto asset. The stolen money was in a safe and a popcorn can. The hacker faces 20 years in prison.

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This is where the fortune was stashed: The IRS found billions worth of bitcoins in a safe deposit box in Georgia.

IRS

Cash and precious metals were also seized during the house search.

Cash and precious metals were also seized during the house search.

IRS

The cryptocurrency was also stored on a minicomputer inside a popcorn can.

The cryptocurrency was also stored on a minicomputer inside a popcorn can.

IRS

It’s about it

  • A 32-year-old man stole over 50,000 bitcoins.

  • The money came in 2012 Silk Road Marketplace lost.

  • He used a simple trick to get the money.

  • Now the thief faces a total of 20 years in prison.

Agents of the US tax office IRS found a huge stash of cryptocurrencies in a house in the US state of Georgia. On November 9, 2021, they searched the premises and found 50,491 bitcoins. At the time, his value was around $3.3 billion. The bitcoins were hidden in a floor safe and on a mini computer in a popcorn can under the blankets in the bathroom cabinet.

During the search of the house, police officers also found $661,900 in cash, eight silver bars weighing a total of 1.2 kilograms and around 100 grams of gold. as the Justice Department announced earlier this week. According to the statement, Jason Zhong, 32, confessed to stealing money from Silk Road in September 2012. He faces up to 20 years in prison.

“Dubba” helped with the theft

Between 2011 and 2013, tens of billions of dollars and tons of drugs were traded through the illegal Darknet Silk Road marketplace. Zhong was also active on Silk Road at the time. However, he didn’t go after drugs, but instead used a loophole in the system to grow his cryptocurrency. For this, he created several accounts, for example with the pseudonyms Thetormentor, Suxor or Dubba. He then deposited the money into accounts.

After the bitcoins arrived, he made several withdrawal requests within a second. Because it was not checked whether the money was still there, it was returned to Zhong several times. In one case, he transferred 500 bitcoins and shortly afterwards used the trick to withdraw 2,000 bitcoins. The next day he was able to get around 3000 bitcoins using this trick, like va The IRS document is called For comparison: Back then, Bitcoin was worth around ten dollars.

property intact

Over the next nine years, Zhong apparently kept the amount almost entirely intact. This may be out of fear that switching to a common currency would attract the attention of the authorities, he writes “Wired”. But he did: “Thanks to modern cryptocurrency surveillance and good old-fashioned policing, law enforcement was able to track down and secure this impressive amount of Bitcoin from crime,” the statement continued. They were able to trace the money to a crypto exchange, which revealed Zhong’s identity. The secured assets now go to the US Treasury.

Individual X

Zhong’s case is reminiscent of another case in 2020 where the IRS managed to seize nearly 70,000 bitcoins. These were also stolen from the Silk Road marketplace. To this day, it is not publicly known who was behind the hack. In the files of the IZS, the accused is identified only as a natural person X. Silk Road was active until October 2013. The founder of the platform, Ross Ulbricht, has been behind bars since then. In 2015, he was sentenced to double life in prison plus 40 years without the possibility of parole. Ulbricht’s appeals have so far been unsuccessful.

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