US man pleads guilty to stealing over $5 billion in Bitcoin from online black market

A man in the US has pleaded guilty to stealing more than $5 billion of stolen Bitcoin in what authorities have called a historic case.

The Department of Justice announced that James Zhong pleaded guilty to stealing more than 50,000 Bitcoin from the online Silk Road marketplace of the dark web.

Police raided Zhong's home in the state of Georgia last November, but it was only revealed following the hacker's conviction.

READ MORE: Medibank hackers threaten to release data within 24 hours

Authorities seized more than 50,676 Bitcoin from various hiding places around the house, including in a safe, and inside a popcorn tin.

At the time, the cryptocurrency seized was equivalent in value to US$3.36 billion ($5.19 billion).

Police also confiscated US$661,900 ($1.02 million) in cash, and "various metals".

READ MORE: 'Putin's chef' admits to US election meddling

At the time, it was the largest cryptocurrency seizure in US history, and it remains the country's second largest financial seizure ever.

Zhong created a series of fake accounts in September 2012 to steal the Bitcoin from Silk Road, a now-defunct dark web black market.

"For almost 10 years, the whereabouts of this massive chunk of missing Bitcoin had ballooned into an over-US$3.3 billion mystery," US Attorney Damian Williams said.

READ MORE: How to watch tonight's blood moon

IRS-CI Special Agent in Charge Tyler Hatcher said Zhong attempted to hide his stolen loot through "a series of complex transactions which he hoped would be enhanced as he hid behind the mystery of the 'darknet.'"

Zhong could face up to 20 years behind bars.