The U.S. Cracked a $3.4 Billion Crypto Heist and Bitcoin’s Anonymity

Law enforcement is using advanced methods to track crypto transactions to stop crime and seize assets.

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Mr. Zhong found a software bug on Silk Road, a dark web marketplace for illegal purchases. He was using it to buy cocaine in Dec. 2012.

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Mr. Zhong said he inadvertently double-clicked a withdrawal button, allowing him to take double the bitcoin he had deposited.

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Records from federal prosecutors show that after this first fraudulent withdrawal, he managed to steal a total of 50,000 Bitcoins.

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For eight years, Mr. Zhong concealed his stolen bitcoins by transferring them between different accounts.

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Despite his immense wealth, Mr. Zhong maintained a humble lifestyle in a modest house in Athens, GA, and dressed casually in shorts and t-shirts.

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He also owned a lake-house retreat in Gainesville, GA, a Lamborghini sports car, and a $150,000 Tesla.

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In November 2021, federal agents conducted a surprise search at the residence of Mr. Zhong using a warrant.

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During the search, federal agents found a safe containing the digital keys to his crypto fortune and popcorn with the same keys in the bathroom.

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Mr. Zhong pleaded guilty to wire fraud and is scheduled to be sentenced on Friday in a New York federal court.

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