James “Jimmy” Zhong, an American, was found guilty in 2022 of stealing over 51,680 bitcoins from the Silk Road online illicit market between 2012 and 2014 (worth $620,000 at the time; $3.4 billion in 2023). Zhong, a participant in the creation of bitcoin in its early stages, had discovered a mistake on Silk Road that permitted him to withdraw more money than was initially submitted.
How was Bitcoin billionaire Jimmy Zhong caught?
Bitcoin billionaire Jimmy Zhong was caught in November 2021 after a raid on his Gainesville, Georgia home. The raid resulted in the seizure of over 50,676 bitcoins, then valued at over $3.36 billion. This was the largest cryptocurrency seizure in the history of the U.S. Department of Justice.
Zhong was arrested and charged with wire fraud. He cooperated with investigators and forfeited all of his bitcoin. In April 2023, he was sentenced to a year and a day in prison.
Zhong was caught after a private investigator, Robin Martinelli, was hired by Zhong to investigate a burglary at his home. Martinelli reviewed surveillance footage from Zhong’s home and noticed a figure leaving the home with a bag. Martinelli also surveilled Zhong’s circle of friends and noticed that Zhong was spending large amounts of money on luxury items and investments.
Martinelli’s findings were reported to the authorities, who launched an investigation into Zhong. The investigation led to the raid on Zhong’s home and his subsequent arrest.
Where is Jimmy Zhong now?
Zhong is currently serving his prison sentence at the federal prison camp in Montgomery, Alabama. He is scheduled to be released in July 2024.
In addition to his prison sentence, Zhong was also ordered to forfeit all of his Bitcoin. This means that the government has taken ownership of the bitcoin that was seized from Zhong’s home. The government has not yet announced what it plans to do with the bitcoin.
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