The call helped track down the thief of 50,000 Bitcoin

The Athens-Clarke County Police Department, Georgia, received a call on the night of March 13, 2019, described as "unlike any call before".

Athens-Clarke police are familiar with 911 calls about break-ins, bar fights and all kinds of crime. But that call was different.

The person on the line is Jimmy Zhong , 28 years old, a former student of the University of Georgia, a famous computer expert and living in a house that is closely monitored by a smart system.

Zhong announced that his house was broken into and 150 Bitcoins worth hundreds of thousands of dollars were stolen. "I'm panicking," Zhong said over the phone, according to a recording obtained by CNBC . "I am a Bitcoin investor, an online way of investing".

Zhong took a photo with two women in front of the limousine. Photo: Commsrisk

What happened next ended a nearly decade-long manhunt. Zhong's call on the fateful evening helped the US investigation agency have clues to track digital traces, thereby revealing the dark truth about the world of cryptocurrency. That's where the computer expert and the villain switch places, maybe even being the same person.

Things didn't go the way Zhong wanted. The call did not help find the suspect in the break-in. So, Zhong turned to private investigator Robin Martinelli, not knowing that the police were starting to pay more attention.

A former deputy sheriff of a town, Martinelli is not an expert on cryptocurrency. She only takes care of issues of inheritance and child custody... but still agrees to help Zhong. She began by checking the surveillance video archive from Zhong's house and discovered a slender figure, identified as male. "This guy was wearing a gray hoodie with a black ski mask," Martinelli told CNBC in a new upcoming documentary.

The suspect seemed to know his way around Zhong's house. Martinelli believes this is a friend, or at least has heard Zhong boast about his Bitcoin. She followed Zhong's friends under suspicion, including placing tracking devices on her car. But from here, Zhong seemed to want to stop Martinelli's work.

"He would be upset when I mentioned that someone knew where this money was. I think, Jimmy was hurt when he was betrayed by close friends," Martinelli said. Zhong then stopped hiring her.

During the years he lived in Athens-Clarke, Zhong was famous for his generosity and willingness to splurge, such as buying up all the expensive alcohol in bars and inviting strangers. This person also regularly stays at luxury hotels in Georgia such as the Ritz Carlton, Plaza and Waldorf Astoria, shops for Louis Vuitton, Gucci and Jimmy Choo, owns a Tesla, buys a second home on Lake Gainesville, owns a yacht, jet skis and lots of alcohol. Zhong is also willing to rent a private plane for a group of friends to go out.

But Zhong also caused suspicion when he had a "luxurious" life but his source of income was unclear. To his friends, this person claims to be a cryptocurrency expert, investing since 2008 - the year Bitcoin was born - and enjoying the results since then. But Zhong did not know that he was in the sights of a team of agents of the IRS Criminal Investigation unit, who were on the trail of tens of thousands of Bitcoins stolen many years ago.

In 2012, a hack against Silk Road - a dark web specializing in selling illegal products, to buy drugs and pay with Bitcoin - occurred and took away 50,000 Bitcoin, at its peak value of 3.3 billion USD. . The investigation team tracked the money flow on the blockchain, but could not trace it. They wait for hackers to reveal loopholes.

"For nearly 10 years, the whereabouts of Bitcoin remained unknown and gradually turned into a $3 billion mystery," Damian Williams, an official with the US Department of Justice, said in a late 2022 announcement.

Zhong and two IRS investigators were recorded on hidden cameras. Photo: Athens-Clarke Police

In March 2019, Zhong called the police. Six months later, Chainalysis, a blockchain analysis company involved in tracking down digital wallets containing stolen assets in Silk Road, discovered that hackers made a small mistake. This wallet transferred the amount of 800 USD to a centralized cryptocurrency exchange - which requires users to declare their real name and current address. The account was later determined to be registered in the name Zhong.

The investigation team has not been able to conclude that Zhong is involved in the Bitcoin theft. So, the IRS called the Athens-Clarke County Police Department requesting assistance. Three investigators Jody Thompson, Trevor McAleenan and Shaun MaGruder approached Zhong and said they were investigating the theft of hundreds of Bitcoins from this person. The first thing was to knock on the door of the house in Gainesville. "If you guys solve the problem, I promise we'll have grand parties," Zhong said.

According to hidden cameras recorded by the investigation team, the house had a bar, stripper pole and guns. The group then told Zhong to open his laptop and tell him the details of his theft. This person asked the group to look away, but the camera still recorded the information. The Bitcoin wallet address appeared clearly on the screen, with a value of 60-70 million USD at that time.

As he left the house, MaGruder thought, "We found it. It's unbelievable."

A search warrant was issued for the home. On November 9, 2021, the trio returned with a large police team. When rummaging through everything, the group saw a box of popcorn, inside was a circuit board containing a Bitcoin wallet security key worth millions of dollars.

Bitcoin coins, cash and Bitcoin wallets hidden in popcorn boxes at Zhong's house. Photo: IRS Criminal Investigations

Continuing to use sniffer dogs specializing in sniffing electronic devices, the group found a safe buried in the basement, containing a Bitcoin wallet with the address in the 2012 Silk Road hack. In addition, millions of dollars in cash were discovered. detected and seized.

Zhong was arrested later. The US government confiscated all Bitcoin, and opened a process to allow victims of the hack to register to get their money back. But no one came forward to claim the money.

Zhong was sentenced to one year in prison. But to date, Zhong's theft of 150 Bitcoins has not been solved.

Bao Lam (according to CNBC )

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