This article has been republished with permission from Binance News.
According to CoinDesk, a CNBC report has revealed more information about Jimmy Zhong, who was arrested last year for stealing over 50,000 bitcoins from the Silk Road marketplace. The case was reopened when Zhong called emergency services in Athens, Georgia, to report that hundreds of thousands of dollars worth of cryptocurrency had been stolen from his home. After some investigation, the U.S. Department of Justice (DOJ) arrested Zhong and seized one of the largest-ever amounts of cryptocurrency from an individual.
Before his arrest, Zhong was known for hiring private jets, throwing lavish parties, and gifting his friends thousands of dollars. He was charged with wire fraud and, after pleading guilty, was sentenced to a year and a day in federal prison. He also forfeited his bitcoin. Zhong, now 33 years old, began his sentence at the federal prison camp in Montgomery, Alabama, on July 14, 2023. Zhong’s attorney, Michael Bachner, told CNBC that the government has not been hurt by his client’s actions. He pointed out that if the government had seized the 50,000 bitcoins at the time of Silk Road operator Ross Ulbricht’s arrest, they would have sold them for about $320 per coin, or roughly $14 million. However, due to Zhong’s actions, the government has made a $3 billion profit.