On Monday, June 24, 2024, the Mt Gox bankruptcy trustee declared that reimbursements are slated to commence at the start of July. The trustee explained that disbursements will be made in bitcoin and bitcoin cash and sent to designated exchanges. After Ten Years, Mt Gox Trustee Announces July Start for Repayments Approximately billion worth […]
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Bitcoin Thief’s Decade-Long Heist: Solving The Mystery Of The Stolen Silk Road BTC
In 2012, a staggering 50,000 Bitcoin (BTC) were stolen from the infamous Silk Road, an illicit dark web marketplace. Over the years, the value of the stolen BTC skyrocketed to billion, making it one of the most significant mysteries in cryptocurrency.
However, nearly a decade later, a critical mistake by the thief led to a breakthrough in the case, allowing the IRS-CI (Internal Revenue Service Criminal Investigation) to crack the puzzle.
CNBC has obtained exclusive footage that reveals how investigators meticulously connected the dots, ultimately leading to the unmasking of the perpetrator behind the Bitcoin heist.
Silk Road Bitcoin Heist Unraveled
The story begins in Athens, Georgia, an unsuspecting college town familiar with typical misdemeanors. On the night of March 13, 2019, 28-year-old Jimmy Zhong, a local computer expert, made an unusual 911 call to report the theft of hundreds of thousands of dollars’ worth of Bitcoin from his home.
Per the report, the investigation into the theft from Zhong’s residence initially yielded no suspects. The Athens-Clarke County Police Department, inexperienced in crypto-related cases, struggled to make headway.
In a quest for answers, Zhong sought the assistance of local private investigator Robin Martinelli. Although not well-versed in cryptocurrencies, Martinelli was determined to crack the case.
Martinelli meticulously examined Zhong’s extensive home surveillance system and stumbled upon a crucial piece of evidence—a slender figure captured in the footage from the night of the crime.
Little did Zhong know that while reporting his stolen Bitcoin, a team of IRS agents worked tirelessly to solve the 2012 Silk Road hack.
However, the hacker’s identity remained concealed until a tiny slip-up occurred. In September 2019, the hacker mistakenly transferred around 0 worth of BTC to a cryptocurrency exchange that adhered to established banking regulations, including “know your customer” procedures.
To the investigators’ surprise, the account used for the transaction was registered in Jimmy Zhong’s name, linking him to the stolen Silk Road funds. The IRS contacted the Athens-Clarke County Police Department, seeking collaboration to build a solid case against Zhong.
United by a shared objective, Lt. Jody Thompson, IRS-CI special agent Trevor McAleenan, and Shaun MaGruder, CEO of cyber intelligence company BlockTrace, formed a team.
Armed with evidence, they obtained a federal search warrant for Zhong’s residence. On November 9, 2021, a large team of officers raided Zhong’s home, delivering the shocking news that he was the prime suspect.
From Creator To Thief?
Investigations revealed that Zhong, an early coder allegedly involved in the development of Bitcoin since its inception in 2009, had played a role in perfecting the technology.
In an ironic twist, a hacker involved in the creation of Bitcoin had transformed into one of the most prominent BTC thieves in history. Zhong was charged with wire fraud, pleaded guilty, and received a sentence of one year and a day in federal prison, starting on July 14, 2023.
Zhong could not retain the illicit funds despite his immense fortune in stolen BTC. The US government seized the assets, initiating a process for victims of the Silk Road hack to reclaim their lost Bitcoin.
However, no claimants came forward, and the government sold the seized Bitcoin, with the proceeds likely to be shared with the Athens-Clarke County Police Department as a token of appreciation for their assistance.
In his statement to the judge, Zhong admitted that the stolen Bitcoin had made him feel important, but ultimately, his actions had only benefited the government financially.
While the original crime of the Bitcoin theft from Zhong’s Athens residence remains unsolved, the arrest and conviction of Zhong have brought closure to one of the most significant cryptocurrency crimes of our time.
Featured image from Shutterstock, chart from TradingView.com
Has Bitcoin Price Found Support At A Decade-Long Trend Line?
After a volatile first half, Bitcoin price action has been grinding sideways, seeking to find some type of reliable support. Although there has yet to be a clear sign of a reversal, the top cryptocurrency by market cap might have finally found support at a ten-year-long trend line.
Complicated Technical Analysis Or This One Simple Trend Line Trick?
Technical analysis is the study of chart patterns, trading indicators, Japanese candlesticks, and other data points in an attempt to predict future price action. The very basis of most technical drawings and chart patterns begins with a simple trend line.
And while it isn’t uncommon to see analysts with a kitchen-sink worth of technical tools turned on, sometimes less is more when it comes to getting a good read on the market.
Using only one trend line, it is easy to see why Bitcoin price might have finally found some support. With nothing more than the trend line to go by, buying low and selling high has historically yielded miraculous results.
Will this nearly ten year long trend line hold? | Source: BTCUSD on TradingView.com
Has Bitcoin Price Finally Found Support At A Decade-Long Trend Line?
Bitcoin price first claimed the trend line in April 2013, just as Mt. Gox took its exchange offline to give the market time to “cooldown.” From there, each subsequent bear market in Bitcoin returned to the same trend line drawn in red.
The trend line was touched in early 2015, and again in 2016 prior to the legendary 2017 Bitcoin bull run. Although the 2018 bear market found support before it ever reached the trend line, the March 2020 Black Thursday collapse took Bitcoin price precisely to the same trend line that is still holding today.
Fast forward to June 2022 and BTC once again touched down on this trend line. July once again tapped the line, yet held strong for a second month in a row. Thus far, August hasn’t made an attempt to try again, and after two failed attempts to break below in a row, it might be time for bulls to rally.
Past rallies from the trend line have resulted in 2,200% ROI, 9,700% ROI, and 1,500% ROI, respectively. Losing it could be catastrophic for crypto, so it is worth paying attention to, as simple as it may seem to the naked eye. Will this decade-long trend line produce a rally, or will it finally be lost?
Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
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Now Or Never: Bitcoin Builds Base At Decade-Long Parabolic Curve
The masses are bearish on Bitcoin. The market is convinced that prices below ,000 will be revisited given the continued weakness in the top cryptocurrency by market cap. All eyes are on the massive “bear flag,” but could it instead be a bear trap?
Bitcoin price continues to grind along a decade long parabolic trend line that in the past has put in several mid- to long-term bottoms. Here is a closer look at a currently unbroken trend line that BTCUSD must hold for continued parabolic momentum and what it could mean if we get a bounce from here.
Unbroken Decade-Long Parabolic Bull Trend Readies Base 4
If you ask around, most people will explain with certainty the several reasons they have for why Bitcoin is destined for sub-,000. Meanwhile, the price per BTC is grinding along a parabolic support line that over the last decade has proven to put in bottom after bottom.
Related Reading | Bitcoin Bear Market Comparison Says It Is Almost Time For Bull Season
The cryptocurrency became a household name in late 2017 due to its parabolic rally that eventually broke down and took the price per cryptocurrency back to ,200. The retest of that level on Black Thursday only added to the base-building in the chart below.
Attention, base 4. Are we cleared for liftoff? | Source: BTCUSD on TradingView.com
Comparing the curved, decade-long trend line with the parabolic curve pattern pictured above, there is a chance base 4 is in the process of being built. Between base 3 and base 4, the parabolic asset – BTC in this case – doubles in value in a very short time.
From late 2020 to April 2021, Bitcoin price grew over six to twelve times in value during what would have been the run up from base 3 to base 4. According to this diagram, base 4 is also quite steep, allowing price to climb dramatically higher. The only problem is, this final base, if valid, suggests the end is near for this decade-long bull trend line.
With a parabolic trend line violated, the top cryptocurrency by market cap could plunge as much as 80% from whatever highs are set. Past bear markets have resulted in more than 84% declines from top to bottom. Parabolic rallies also tend to break down faster than it took to climb – similar to a rollercoaster’s anxiety-inducing ascent, followed by a speedy plunge and the ride is over until you decide to get on once again.
“Bulls take the stairs, bears take the elevator”
On-chain signals support a bottom at this level | Source: Glassnode
On-Chain Signals Support Bitcoin Bottom At Current Levels
On-chain signals, like entity-adjusted dormancy flow exhibit similar signs of accumulation going on as other moments Bitcoin put in a significant bottom. Several of these on-chain bottoms arrived precisely as the price per BTC touched down on the parabolic trend line.
Related Reading | Crypto Mimics Textbook Market Sentiment Cycle, What Happens When Confidence Returns?
Could this be a mere coincidence, or is there more validity that this parabolic trend line holds, a new base is build, and the final phase of the Bitcoin rally begins?
Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.
Featured image from iStockPhoto, Charts from TradingView.com
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