LuBian Bitcoin Hack: China Alleges US Involvement
Background on the LuBian Bitcoin Hack
China’s national cyber defense agency has raised claims about American involvement in the LuBian Bitcoin hack, a case involving over 127,000 BTC valued at approximately $14.5 billion. The LuBian mining pool, formerly a leading player in China’s cryptocurrency sector, saw its funds stolen in December 2020. While the breach went largely unreported at the time, Arkham Intelligence described it in August 2023 as the “largest ever” Bitcoin hack.
The Chinese National Computer Virus Emergency Response Center (CVERC) released a technical analysis on July 7, 2024, outlining the trajectory of the stolen Bitcoin. According to reporting via Cointelegraph, CVERC alleges unusual activity around how the US authorities ultimately obtained the dormant cryptocurrency.
US Government’s Seizure of LuBian Bitcoin
In recent weeks, US officials filed a civil forfeiture complaint for the 127,271 BTC connected to Chen Zhi, founder of Prince Group and the reported owner of the hacked LuBian funds. According to statements in the US indictment, “Those funds are presently in the custody of the US government,” marking the largest digital asset forfeiture in Department of Justice history.
Arkham data shows that after nearly four years of inactivity, on July 5, 2024, 120,576 BTC were transferred in a single transaction from an address labeled “LuBian.com Hacker” directly to an address labeled “US Government: Chen Zhi Seized Funds.” The CVERC report claims this dormant period is “clearly inconsistent with the nature of ordinary hackers who are eager to cash out and pursue profits.”
During this period, Chen Zhi and his Prince Group reportedly sent small Bitcoin transactions, complete with messages pleading for the return of the funds and offering rewards. There was no response from the address controlling the stolen BTC. CVERC’s analysis suggests a geopolitical angle, questioning how and when the United States gained control of the digital assets.
Geopolitical Implications and Market Response
The CVERC report introduces diplomatic concerns, underlining that the US indictment did not detail how access to the funds was achieved. The group asserts that the US controlled the funds for more than a year before the publicized seizure.
At the time of publication, the LuBian-derived Bitcoin represented at least 39% of the 326,500 BTC (over $34 billion) reportedly held in US government-linked addresses, according to Arkham.
The case comes amid intensifying competition between the US and China in cryptocurrency adoption. In a recent CBS News interview, US President Donald Trump stated, “The US is far ahead of China and everybody else” in digital currency use, while acknowledging China’s rapid expansion into the sector.
What’s Next for the LuBian Bitcoin Hack?
It remains to be seen whether the US government will disclose details on the recovery and seizure method for the LuBian Bitcoin hack. The Chinese cyber agency has called for transparency, as both governments vie for technological leadership in the cryptocurrency market.
For ongoing coverage of similar incidents and crypto news, see Vizi’s cryptocurrency section.
