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- China’s CVERC alleges the U.S. secretly controlled $14.5B in stolen Bitcoin.
- The hack’s four-year dormancy raises questions of state involvement.
- The case intensifies U.S.–China cyber and crypto tensions.
China’s national cyber defense agency has accused the United States of playing a role in one of the largest Bitcoin thefts in history — the 2020 LuBian mining pool Hack. In a technical report published Sunday, the Chinese National Computer Virus Emergency Response Center (CVERC) suggested that the U.S. may have orchestrated or benefited from the theft of 127,272 BTC, valued at around $14.5 billion today.
While the hack occurred nearly four years ago, it remained largely unknown until blockchain analytics firm Arkham exposed it in August, calling it “the largest-ever Bitcoin hack.”
A Dormant Hack and a Sudden U.S. Seizure
According to the CVERC report, the stolen Bitcoin remained untouched for years before being transferred to an address labeled “US Government: Chen Zhi Seized Funds” in July 2024. Data shows that almost the entire balance — over 120,000 BTC — was sent from the so-called “LuBian.com Hacker” address to this U.S.-linked wallet in a single transaction.
The timing has fueled suspicion in Beijing. The CVERC said the long dormancy of the funds “is clearly inconsistent with ordinary hackers eager to cash out,” implying a coordinated, state-backed operation.
The U.S. Department of Justice had already announced the seizure of these assets in a civil forfeiture case against Chen Zhi, founder of the Prince Group, but has not disclosed how it gained control of the coins.
China Suggests Geopolitical Motive
In its statement, CVERC framed the incident as part of a broader cyber confrontation between the U.S. and China. The report claimed that Chen Zhi’s team had repeatedly sent small Bitcoin transactions to the hacker address, pleading for the stolen assets’ return — with no response.
The U.S. government now reportedly holds nearly 39% of all Bitcoin linked to seized crypto wallets, according to Arkham data.
Also Read: Bitcoin ETFs Pull $2.7B in Uptober Inflows Despite Trump’s China Tariff Shock
A Clash of Crypto Powers
This dispute adds a geopolitical edge to the mystery surrounding the LuBian hack. It also underscores rising digital tensions between Washington and Beijing as both race for influence over the global cryptocurrency landscape.
As former President Donald Trump recently declared, the U.S. is “far ahead of China” in crypto adoption — a claim Beijing may now view through a different lens.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
