Investing.com - Financial Markets Worldwide
💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

$3.4B of Bitcoin in a popcorn tin: The Silk Road hacker’s story

Published 05/09/2023, 09:30 AM
Updated 05/09/2023, 09:40 AM
$3.4B of Bitcoin in a popcorn tin: The Silk Road hacker’s story
BTC/USD
-

Where would you hide $3.4 billion worth of Bitcoin? For James Zhong, the ideal spot was to store it on a computer with its circuitry exposed placed in a used Cheetos popcorn tin hidden in a bathroom closet under a pile of blankets.

Zhong, now 32, was sentenced to a year in federal prison last month for a hack that took place almost 11 years ago. His victim? Ross Ulbricht, the proprietor of the Silk Road dark web drug marketplace where Bitcoin found its first significant use case, as an underground currency. Today, Ulbricht is himself serving two life sentences plus 40 years for his part in operating the illegal marketplace, but darknet markets continue to flourish.

Prosecutors stated that Zhong spent lavishly on luxuries. (Zhongs social media)
The computer containing most of Zhongs Bitcoin, found in a popcorn tin. (United States Department of Justice)
Zhong memed about his party habits on the Bitcointalk forum.
Zhong had autism, and prosecutors said he spent lavishly. (Social media)
Read also
Features
Features
Cheetos, really? Where else would you keep billions in Bitcoin? (United States Department of Justice)
Read also
Features
Features
Zhong, writing as the aptly named Loaded on the Bitcointalk forum.
The lakefront home where Zhong kept his treasure. $3.4 billion could buy around 3,600 such houses. (Zillow)
Zhongs floor safe. (United States Department of Justice)
Read also
Features
Features
The Casascius physical Bitcoin found in Zhongs kitchen drawer, making the U.S. government an accidental collector. (United States Department of Justice)

Continue Reading on Coin Telegraph

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.