$14.5B Bitcoin Hack at Chinese Miner LuBian Revealed by Arkham Intelligence

Sean Williams
Hack

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3 Key Takeaways

  • LuBian lost 127,426 BTC in 2020 in a $3.5B hack, now worth $14.5B.
  • The hack stemmed from weak private key generation, susceptible to brute-force attacks.
  • Funds remain unmoved, with no acknowledgment from LuBian or the hacker.

Arkham Intelligence has exposed what is now believed to be the largest crypto theft in history — a $3.5 billion Bitcoin hack targeting Chinese mining company LuBian in December 2020. The hack, which remained hidden for over four years, involved the loss of 127,426 BTC, worth approximately $14.5 billion today.

Hack Hidden in Plain Sight

According to Arkham’s investigation, LuBian never disclosed the breach publicly. At the time, Bitcoin was priced around $27,000, and the value of the stolen BTC amounted to $3.5 billion. With BTC now trading near $114,000, the stolen coins have appreciated massively, surpassing the scale of Bybit’s $1.5 billion exploit earlier this year.

Arkham stated on X (formerly Twitter) that neither LuBian nor the hacker ever acknowledged the breach, keeping it under wraps while the funds sat untouched.

Vulnerability in Private Key Generation

The root of the breach, according to Arkham, was a flaw in LuBian’s private key generation algorithm. The miner used a method vulnerable to brute-force attacks, allowing hackers to eventually gain access to wallet addresses holding large amounts of Bitcoin.

LuBian had controlled nearly 6% of the global Bitcoin hashrate in mid-2020, operating mining infrastructure across China and Iran, making it a significant player in the industry at the time.

Also Read: Crypto User Loses $908K in Delayed Wallet Draining Scam Linked to Malicious Approval

Blockchain Pleas Ignored

Following the attack, LuBian sent multiple OP_RETURN messages on the blockchain, appealing to the hacker for the return of funds. “To the whitehat who is saving our asset, you can contact us,” one such message read. Despite this, no reply ever came, and the stolen BTC has never moved.

Notably, the hacker’s wallet address received test transactions from Binance in September 2024, possibly signaling investigation or surveillance attempts.

This revelation redefines the scale of crypto thefts to date. With 127,426 BTC still dormant, the LuBian hack not only dwarfs prior exploits but also raises critical questions about transparency and security within the mining sector.

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.

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