China Accuses US Of Stealing $13 Billion In Bitcoin From LuBian Mining Pool

In a dramatic new twist in global cyber politics, China has accused the United States government of stealing 127,000 Bitcoins worth nearly $13 billion from the crypto mining pool LuBian in what Beijing calls a “state-level hack.” The US government has so far remained silent on the explosive claim.

According to a report released by China’s National Computer Virus Emergency Response Center (CVERC), the December 2020 cyberattack on LuBian was no ordinary crime. The agency alleges it was part of a sophisticated hacking campaign directed by the US government.

“The US government may have already used hacking techniques as early as 2020 to steal the 127,000 Bitcoins held by Chen Zhi,” the report wrote. “This is a classic ‘black eats black’ operation orchestrated by a state-level hacking organization.”

The Alleged Theft and the Global Fallout

LuBian, once one of the world’s largest Bitcoin mining pools, reported a major breach in late 2020. The stolen cryptocurrency later surfaced in wallets confiscated by the US Department of Justice (DOJ), a fact that deepened suspicions in Beijing.

The DOJ has alleged that these Bitcoins are linked to Chen Zhi, billionaire chairman of Cambodia’s Prince Group, who was charged with money laundering and wire fraud conspiracy in October. However, China’s cybersecurity agency disputes this narrative, claiming that Washington hacked the Bitcoin and then pinned the theft on Chen as part of a cover-up.

US Legal Action and Chen’s Defence

US prosecutors have since launched a civil forfeiture case to seize the 127,271 Bitcoins, the largest cryptocurrency seizure ever by the US government. However, the DOJ has not clarified how or when it gained access to the wallets. Federal prosecutors in Chen’s case also declined to comment on how they obtained control of the digital assets.

Chen’s lawyer, Matthew L. Schwartz of Boies Schiller Flexner, said his client is working with cryptocurrency experts to trace the missing Bitcoins and challenge the US government’s actions.

“As we explained in our submission to the Court, we are working closely with cryptocurrency experts to trace the Bitcoin that the government seized over a year ago, and which was stolen back in 2020,” Schwartz said in a statement to Bloomberg.
In a separate court filing, he described the government’s allegations as “seriously misguided.”

Chen, who remains outside US custody, continues to maintain his innocence.

Rising Cyber Tensions Between Washington and Beijing

This latest accusation is part of a wider pattern of digital hostilities between the two superpowers. Earlier this year, Beijing accused the US of exploiting a Microsoft Exchange server vulnerability to infiltrate Chinese companies. In October, China claimed to have “irrefutable evidence” of a US-led cyberattack on its National Time Service Center.

Analysts note that while China frequently issues hacking allegations against the US, its reports often lack detailed forensic evidence, unlike US indictments that typically include IP traces, malware data, and email logs.

Both the US Department of Justice and the Chinese embassy in Washington declined to comment on the recent claims leaving the world watching as another high-stakes digital standoff unfolds.