**China Accuses U.S. of Orchestrating Cyberattack to Steal Over $13 Billion in Bitcoin**
A new dispute has emerged between China and the United States over 127,426 Bitcoin, valued at more than $13 billion. China has accused the U.S. of orchestrating a cyberattack in 2020 that resulted in the theft of these Bitcoins from a Chinese mining pool called LuBian. This accusation has sparked a diplomatic conflict, intertwining cybersecurity, finance, and politics in one of the most intense controversies in the crypto market.
### The 2020 Bitcoin Theft from LuBian Mining Pool
In December 2020, a hack targeted LuBian, a prominent Chinese Bitcoin mining pool, leading to the theft of 127,426 BTC. At the time, the stolen Bitcoin was valued at approximately $3.5 billion. However, the identity of the culprit remained unknown for several years.
Blockchain experts initially suggested that a technical flaw in the mining pool’s system—such as a “weak-key” vulnerability—could have allowed the theft. Others speculated about the possibility of an insider being involved. Despite these theories, the true cause of the hack remained unclear for a long time.
### U.S. DOJ Seizes 127,271 BTC in 2025
In late 2025, the U.S. Department of Justice (DOJ) announced the seizure of 127,271 BTC, linking the assets to criminal activities conducted by the Cambodia-based Huione group. This seizure was described as the largest Bitcoin confiscation in history, with a value exceeding $13 billion.
The U.S. government did not provide detailed evidence revealing the origin of the hack or the precise nature of the associated criminal actions. Officials emphasized that the confiscation was part of a broader effort to combat online scams and cybercrime. They explained that the seized coins were connected to a series of illicit activities carried out by a criminal organization operating internationally.
### China Rejects U.S. Explanation
China swiftly rejected the U.S. government’s explanation for the Bitcoin seizure. The National Computer Virus Emergency Response Centre (CVERC) accused the U.S. of being the real hacker behind the 2020 breach.
According to CVERC, the hack was part of a U.S.-led cyber operation, and the subsequent seizure was an effort to legitimize stolen Bitcoin assets. These accusations suggest that the U.S. acted as a state-level hacker, intensifying the geopolitical tensions between the two countries.
### Impact on U.S. Bitcoin Reserves and Market
Following the seizure, the U.S. government’s Bitcoin holdings increased to approximately 325,000 BTC, valued around $36 billion. U.S. officials stated that the move was aimed at protecting investors from online fraud and reinforcing law enforcement against cybercrime.
However, this growing control over Bitcoin by the U.S. government has raised concerns globally about the role of governments in managing a currency traditionally designed to be decentralized. The expansion of U.S. Bitcoin reserves has sparked questions regarding the future of cryptocurrency regulations.
### Geopolitical and Market Repercussions
In China, the allegations against the U.S. have become a focal point in broader geopolitical discussions, adding strain to the already complex relationship between the two powers. The ongoing dispute has begun to affect the Bitcoin market, with tensions contributing to a slight price decline.
As of the latest reports, Bitcoin is trading around $105,000, down by 0.72% in the last 24 hours. This market fluctuation is partly attributed to fears that the diplomatic standoff could influence future crypto regulations and cross-border Bitcoin transfers.
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The unfolding situation underscores the increasingly intertwined nature of technology, finance, and international diplomacy in the world of cryptocurrencies. Both China and the U.S. remain key players whose actions will significantly impact the future of the crypto landscape.
https://coincentral.com/china-accuses-u-s-of-stealing-13b-in-bitcoin-in-explosive-new-dispute/