Crypto fraudsters caught
There are billions of dollars hidden in this box
US authorities have seized the property of a crypto-fraudster. Total: $3.4 billion worth of bitcoins.
US police have discovered several billion dollars stashed away – in the form of bitcoins. Some discs were hidden in this floor safe.
The silver box looks unobtrusive. But it is part of an incredible find by American authorities. It’s a chassis safe. Inside: A Crypto Scammer’s Big Booty. Investigators found a total of 3.4 billion US dollars in bitcoins in the house of Jason Z.* (32). In addition to the data carriers in the safe, which was hidden under the floor, the bitcoins lay dormant on data carriers that were scattered around the house and on the computer. Unbelievable: A data carrier was hidden in a popcorn can.
US authorities made a mega find with a real estate fraudster and businessman in November 2021, a federal prosecutor in New York announced on Monday. In addition to the bitcoins, officials also discovered $661,900 in cash, eight silver bars and 100 grams of gold.
Z. stole bitcoins ten years ago from the “Silk Road” portal, which has been closed since 2013. The “Silk Road” belonged to the so-called dark web, a hidden part of the Internet that is often used for illegal activities. The founder is Ross Ulbricht, who was sentenced in 2015 to double life imprisonment plus 40 years.
He used flash transactions for his scam
According to investigators, the 32-year-old confessed last Friday to illegally obtaining more than $50,000 worth of bitcoins in September 2012. He faces up to 20 years in prison.
Z. defrauded “Silk Road” using lightning-fast transactions from about nine anonymous accounts. He found a loophole in the system by transferring bitcoins and making several requests within a second to withdraw the money. There was no checking whether the money was even available, so he could transfer larger amounts of Bitcoins straight away.
The numbers ranged between 500 and 3000 bitcoins. At the time, Bitcoin was worth around ten dollars. The bitcoins he obtained in this way then increased enormously in value over the years. They were discovered during a raid on various facilities at his home in Gainesville, Georgia.
US authorities found $3.6 billion from the married couple
According to the American magazine “Wired”, he never touched this money. Probably because he was worried that exchanging bitcoins for dollars might lead the authorities to a trail. But waiting is of no use to him. Police caught up with him through “modern cryptocurrency surveillance,” as US authorities explained.
The bitcoins found in Z. are the second largest amount of cryptocurrency that US authorities have seized so far. Last February, authorities seized $3.6 billion worth of stolen bitcoins from a New York couple. (lrc/AFP)
* The name is known