China has accused the United States of stealing 127,000 Bitcoin (BTC), worth over $13 billion. The claim centers on the 2020 hack of the LuBian mining pool.
At the time, roughly 127,426 BTC were taken from the pool’s hot wallet, valued at around $3.5 billion.
Beijing’s National Computer Virus Emergency Response Center (CVERC) said the theft was not the work of outside hackers. Instead, the agency called it a “state-level operation” allegedly orchestrated by U.S. intelligence.
The seized Bitcoin now sits at roughly $13.3 billion. The U.S. Department of Justice said the action followed standard legal procedures. Still, China called the move a “state-level cyber theft.” Analysts say the dispute has turned a legal matter into a major geopolitical standoff.
When Bitcoin hit an all-time high of above $126,000 on October 6, 2025, the seized bitcoin would have been worth over $16 billion.
Bitcoin’s price has been volatile recently. The cryptocurrency traded near $103,474, down 1.8% in 24 hours. It reached an intraday high of $107,355 and a low of $104,251, according to Bitcoin Magazine Pro data.
The contested stash represents about 0.65% of total Bitcoin supply. That could tighten circulating liquidity, potentially boosting long-term valuations. Yet, institutional demand remains steady. Bitcoin ETFs continue to show inflows, signaling confidence among large investors.
CoinDesk reporting helped with this article.
LuBian Bitcoin hack
The LuBian hack occurred in December 2020. Hackers drained the pool of more than 127,000 BTC in under two hours.
Blockchain forensics suggest the breach stemmed from weak private key generation, not a typical external hack. Analysts have also noted a “dormancy phase” in which the coins remained untouched for nearly four years.
In 2024, the Bitcoin was moved to new wallets, later identified by tracking firms as controlled by the U.S. government. Beijing sees this as proof of a coordinated, state-level operation.
The U.S. frames it as part of an anti-fraud crackdown, connected to Chen Zhi, chairman of Cambodia’s Prince Group, who faces U.S. charges for alleged crypto fraud.
On-chain analysis shows the coins had remained inactive for years before being consolidated into wallets now identified as controlled by the U.S. government.
Technical reports, including CVE-2023-39910, indicate that weak random number generation made these wallets vulnerable to brute-force attacks.
The U.S. Department of Justice has since filed forfeiture actions, claiming the seized bitcoin represents criminal proceeds.
Source: https://bitcoinmagazine.com/news/china-accuses-us-of-stealing-bitcoin
