This podcast episode follows the story of Jimmy Zhong, a Bitcoin enthusiast who hacked the Silk Road marketplace and stole a significant amount of Bitcoin in 2012. After the collapse of Mt. Gox exchange in 2014, efforts to de-anonymize Bitcoin transactions intensified, allowing for the tracking of illicit crypto and connecting it to real-world identities. Law enforcement agencies began cooperating with crypto exchanges to collect customer information and facilitate investigations. Zhong's arrest, recovery of stolen Bitcoin, and the IRS's successful efforts in seizing illicit funds using these techniques highlight the increased ability to trace and recover stolen cryptocurrency.
