China Alleges State-Sponsored Cyberattack
China's cybersecurity agency, the National Computer Virus Emergency Response Center (CVERC), has formally accused the United States government of orchestrating the theft of approximately 127,000 Bitcoin (BTC) from the LuBian mining pool in December 2020. This accusation, detailed in a recent report, claims the incident was a 'state-level hacker operation' and represents a significant escalation in cyber tensions between the two global powers.
At the time of the hack, the stolen Bitcoin was valued at around $3.5 billion. However, its current market value has surged to over $13 billion, with some estimates placing it as high as $15 billion.
US Links Seized Bitcoin to Fraud Case
The Chinese agency's report links the Bitcoin stolen from LuBian to funds later confiscated by the US government. The US Department of Justice (DOJ) announced criminal charges on October 14, 2025, against Chen Zhi, chairman of Cambodia's Prince Group, for wire fraud and money laundering. Concurrently, the DOJ announced the seizure of approximately 127,000 Bitcoin, asserting these were 'proceeds and instrumentalities' of Chen Zhi's alleged illicit schemes. However, the US has not disclosed the specific methods or timing of how it obtained control of these Bitcoin.
The LuBian Mining Pool Incident
The hack on the LuBian mining pool, a prominent Chinese-based operation, occurred on December 29, 2020. CVERC points to the unusual behavior of the stolen funds as evidence of state involvement. The Bitcoin remained largely dormant in attacker-controlled wallets for nearly four years before being moved to new wallets in mid-2024, a pattern inconsistent with typical criminal activity focused on quick monetization. China has characterized the alleged operation as a 'black eats black' maneuver or 'thieves robbing thieves,' suggesting one state actor exploited a vulnerability to seize assets from another.
Blockchain analytics firms, including Arkham Intelligence, have also traced the funds seized by the US government directly back to the LuBian mining pool theft. Technical analyses suggest the breach exploited a 'weak-key vulnerability' or 'pseudorandom number generator (PRNG) vulnerability' in the pool's private key generation.
Escalating Geopolitical Tensions
This accusation by China is part of a broader pattern of attributing major cyberattacks to the US, further intensifying geopolitical tensions between the two nations over cybersecurity and the control of digital assets. The dispute highlights the complex and often opaque nature of state-sponsored cyber activities and their implications for the global digital economy.
5 Comments
Bermudez
LuBian had a 'weak-key vulnerability'? Sounds like their own fault, not US hacking.
Noir Black
It's concerning that such a large sum of Bitcoin can be seized without a clear explanation from the US, yet China's own cyber activities also raise questions about its credibility.
KittyKat
A $13 billion accusation without solid, independent verification? Highly suspect.
Mariposa
China's just deflecting from its own cyber-espionage. Pot, meet kettle.
Katchuka
Where's the hard proof? Sounds like a convenient scapegoat for China.