The stash was recovered back in November 2021 — days after the world's biggest cryptocurrency hit a new all-time high — and was worth $3.36 billion at the time.
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A whopping 50,676 BTC has been seized by the U.S. Department of Justice — the second-largest seizure ever.
The stash was recovered back in November 2021 — days after the world's biggest cryptocurrency hit a new all-time high — and was worth $3.36 billion at the time.
It comes after a man called James Zhong pled guilty to unlawfully obtaining the Bitcoin from the Silk Road marketplace all the way back in 2012.
Explaining how the seizure was achieved, U.S. Attorney Damian Williams said:
"For almost 10 years, the whereabouts of this massive chunk of missing Bitcoin had ballooned into an over $3.3 billion mystery. Thanks to state-of-the-art cryptocurrency tracing and good old-fashioned police work, law enforcement located and recovered this impressive cache of crime proceeds."
It's the latest warning to criminals who use cryptocurrency that their crimes are never forgotten — and they could still face prosecution many years after offenses are committed. Williams added:
"This case shows that we won't stop following the money, no matter how expertly hidden, even to a circuit board in the bottom of a popcorn tin."
Silk Road gained infamy as a darknet market that operated from 2011 to 2013 — and it was used to sell everything from illicit drugs to fake driver's licenses and firearms.
While Zhong didn't actually purchase or sell items on this marketplace, prosecutors say he created nine anonymous accounts and tricked Silk Road's systems into letting him withdraw Bitcoin that he wasn't entitled to.
In one case, he deposited 500 Bitcoin — and five seconds later, made five withdrawals of 500 BTC, resulting in an overall profit of 2,000 BTC.
While 2,000 BTC would have only been worth about $20,000 at the time, this crypto stash is valued at $40 million at current market rates.
Zhong had hidden the Bitcoin in an underground floor safe and on a single-board computer concealed under blankets in a popcorn tin stored in a bathroom closet.
Detectives also managed to uncover over $660,000 in cash, physical BTC known as Casascius coins, and several ounces of precious metals.
The 32-year-old pled guilty to one count of wire fraud and faxes a maximum of 20 years behind bars. He will be sentenced in February.
