The United States Department of Justice announced that it seized $3.36 billion worth of bitcoins last year, which was stolen from a dark web site.
The stash of 50,676 bitcoins was found hidden on various devices in a hacker’s home in an under-floor safe and inside a popcorn can. The dark web is a part of the internet that can only be accessed using specialized software.
James Zhong pleaded guilty to hacking bitcoins in 2012 from the Silk Road illegal market. The police raid on Zhong’s Georgia home was carried out a year ago but has only now been revealed.
US officials say the seizure is the second largest in history. It occurred when the value of bitcoin was at its peak — the seized funds would now be worth about $1.1 billion.
Authorities say they found the bitcoin scattered around the house on hard drives and other storage devices in a floor safe and on a small computer hidden inside a popcorn can in a bathroom cabinet.
Police say Zhong managed to steal Silk Road’s funds by taking advantage of a glitch in the site’s payment system.
In September 2012, he opened several accounts on the darkweb marketplace and deposited a small amount of bitcoin into his digital wallets. He then found a way to withdraw much larger amounts quickly so as not to arouse suspicion.
Silk Road was the first darknet marketplace, which operated from approximately 2011 to 2013. It was used by traffickers and other illegal sellers to distribute large amounts of illegal drugs and other illicit goods and services to many buyers.
In 2015, Silk Road founder Ross Ulbricht was unanimously convicted by a jury and sentenced to life in prison.
Zhong pleaded guilty on November 4 to hacking the website and had his bitcoin and assets confiscated by police while awaiting sentencing.
He faces up to 20 years in prison.
Attorney Damian Williams said the police used cryptocurrency tracking techniques to locate the bitcoin.
“For nearly ten years, the whereabouts of this huge missing piece of bitcoin has been a more than $3.3 billion mystery,” he said. “This case shows that we will not stop following money, no matter how cleverly hidden, even for a circuit board hidden in the bottom of a popcorn can.”
At the time, this was the largest cryptocurrency seizure in US history, but it was later surpassed in February when more than $4 billion worth of bitcoin stolen from the 2016 Bitfinex hack was confiscated.
This text was originally published here.
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