In 2012, a hacker stole 50,000 bitcoins from Silk Road, an illegal marketplace on the dark web, becoming one of the most notorious cryptocurrency crimes.
The value of bitcoins stolen rose to more than $3 billion, but the identity of the thief remained hidden.
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Almost a decade later, a critical error allowed the US IRS-CI, the body responsible for investigating crimes financial institutions in the country, reveal the identity of the thief, with CNBC gaining access to exclusive footage detailing the investigation.
In March 2019, Jimmy Zhong, a University of Georgia alumnus and specialist in computing, called 911 to report a crime at her home in Athens, Georgia.
His residence had been broken into, with the thief making off with hundreds of thousands of dollars in cryptocurrencies.
Zhong, known for his bustling nightlife and digital security system, panicked as he tried to explain that he was an investor in bitcoin.
The investigation into the robbery at Zhong's home initially produced no suspects, as local police were not prepared to handle such a complex case involving cryptocurrencies.
However, Zhong hired private detective Robin Martinelli, a former deputy sheriff, to help with the case.
Martinelli analyzed security footage from Zhong's home and identified a thin suspect wearing a hoodie and a ski mask.
It was speculated that this thief was familiar with Zhong's home, possibly being a friend or someone who was aware of the young man's bitcoin wealth.
Robin Martinelli conducted a thorough investigation, identifying a suspect in Zhong's theft of 150 bitcoins, worth nearly $600,000 at the time.
Zhong lived an extravagant lifestyle despite living in a modest bungalow, spending money on luxury hotels, high-end stores and grand parties.
(Image: disclosure)
He claimed to have started with bitcoin in 2009, mining thousands of coins, which raised questions about his source of income.
The big turning point in the case came when the thief made a mistake. He transferred about $800 to a cryptocurrency exchange with strict banking regulations. This account was registered in the name of Jimmy Zhong, and the transaction took place in September 2019.
IRS-CI investigators collaborated with local police by pretending to investigate Zhong's case, but in reality, they were collecting evidence to link him to the bitcoin theft.
During a meeting with Zhong, they discovered a secret computer in a popcorn can with millions of dollars worth of bitcoins and other assets in the basement.
Zhong was arrested and sentenced to one year and one day in prison, and the stolen assets were sold, generating profits shared with the Athens-Clarke County police.
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