China’s national cyber defense agency has made significant claims regarding the alleged involvement of the United States in the multibillion-dollar hack of LuBian, a former major Chinese Bitcoin mining pool.
The Chinese National Computer Virus Emergency Response Center (CVERC), a state-backed cyber defense agency, published a technical analysis report on Sunday detailing the theft of 127,272 Bitcoin (BTC) in the LuBian hack. Although the hack occurred in December 2020, it remained largely unknown to the public until recently, when the blockchain analytics firm Arkham reported it in August as the “largest ever” Bitcoin hack.
### US Files Civil Forfeiture Complaint Amid LuBian Bitcoin Seizure
The CVERC’s analysis was released weeks after the U.S. government filed a civil forfeiture complaint for 127,271 BTC—worth approximately $14.5 billion—in a criminal case against Prince Group founder Chen Zhi. Chen reportedly owned the 127,272 BTC held by LuBian before the hack.
While the U.S. formally filed to seize the assets in mid-October, the government had reportedly already been holding the Bitcoin in custody. According to the indictment statement, “Those funds are presently in the custody of the US government,” noting that the complaint represents the “largest forfeiture action in the history of the Department of Justice.”
### Questions Surround How the U.S. Gained Access
The CVERC pointed out that the U.S. government has not disclosed how it obtained access to the seized funds in the indictment. Citing data from Arkham, the Chinese agency claimed the U.S. has controlled the stolen Bitcoin for more than a year.
Arkham data indicates that an address labeled “LuBian.com Hacker” transferred 120,576 BTC—almost its entire holdings—in a single transaction on July 5, 2024, to another address labeled “US Government: Chen Zhi Seized Funds.”
### Dormancy of Stolen Bitcoin Raises Suspicions
The CVERC noted that the stolen Bitcoin remained dormant for nearly four years following the hack until the funds were “fully taken over by the US government” last year. The agency added that the long period of inactivity is “clearly inconsistent with the nature of ordinary hackers who are eager to cash out and pursue profits.”
Instead, they suggest this pattern aligns more closely with a precise operation orchestrated by a state-owned hacking organization. This report adds a notable geopolitical dimension to one of the most mysterious cryptocurrency thefts in history.
### Scale of Seized Bitcoin and Recent U.S. Crypto Comments
According to Arkham, the LuBian-derived Bitcoin holdings make up at least 39% of all 326.5 BTC (valued at $34.2 billion) held in addresses associated with the U.S. government at the time of publication.
In related news, former U.S. President Donald Trump recently stated that the United States is “far ahead of China and everybody else” in cryptocurrency adoption. Speaking in an interview with CBS News’ 60 Minutes on November 2, he remarked, “China is getting into it in a very big way right now.”
https://cointelegraph.com/news/china-raises-alarm-united-states-lubian-127k-bitcoin-hack
Be First to Comment