The China National Computer Virus Emergency Response Center (CVERC) on November 9, 2025, accused the U.S. government of assisting in a massive Bitcoin heist. Chinese officials claim that 127,000 bitcoins, valued at approximately $13 billion at current prices, were stolen from the LuBian mining pool in a 2020 cyberattack and subsequently ended up in U.S. custody. If these allegations are true, this incident would rank among the largest cryptocurrency thefts in history. The accusation has raised concerns among analysts regarding the security of mining operations and has introduced a new point of contention in U.S.-China technological relations.
Details of the 2020 LuBian Mining Pool Hack
According to Chinese state reports, the LuBian mining pool was infiltrated on December 29, 2020. A technical report from CVERC, as detailed by the Global Times, outlines a step-by-step timeline: hackers exploited a cryptographic flaw and siphoned off 127,272 bitcoins. These bitcoins belonged to LuBian's owner, Chen Zhi, and were valued at approximately $3.5 billion at the time of the theft, with a current valuation of around $15 billion. Before the breach, LuBian, which operated mining farms in China and Iran, controlled nearly 6% of the global Bitcoin mining capacity.
The fact that the entire stolen stash remained untouched for nearly four years is considered unusual by experts. This duration deviates significantly from the typical pattern of rapid liquidation observed in cryptocurrency thefts, suggesting a sophisticated, possibly state-level attacker was involved. During this dormancy period, LuBian even posted messages on the blockchain, appealing to the hackers to return the funds in exchange for a reward.
In mid-2024, the bitcoins were moved to new wallets. Blockchain intelligence firm Arkham later identified these addresses as being controlled by the U.S. government. The CVERC report posits that this strongly indicates the same "state-level hacking organization" responsible for the initial LuBian breach was involved in the final transfer of the coins into U.S. possession. The Chinese report concluded that "The U.S. government likely stole Chen Zhi’s 127,000 Bitcoins as early as 2020 using hacking techniques," characterizing it as a "typical case of 'thieves falling out'."
U.S. Response and Official Position
U.S. authorities have disputed the Chinese accusations. On October 14, 2025, the Department of Justice (DOJ) unsealed an indictment charging LuBian’s owner, Cambodian businessman Chen Zhi, with wire fraud and money laundering in connection with a large-scale "pig butchering" crypto scam. In a concurrent civil forfeiture action, the DOJ announced the seizure of approximately 127,271 bitcoins linked to Chen's fraud scheme.
The DOJ press release explicitly stated that these funds were the "proceeds and instrumentalities" of Chen's scams and were held in wallets for which he controlled the private keys. This action has been described as the "largest forfeiture action in the history of the Department of Justice." Senior U.S. officials characterized the operation as a significant victory against human trafficking and fraud, emphasizing that the seized bitcoins were obtained through illicit schemes, not by hacking the LuBian mining pool.
The DOJ and FBI have not provided any indication that U.S. agents were involved in any hacking activities. In response to the Chinese report, U.S. spokespeople have reiterated that the seizure was a legitimate law enforcement operation targeting criminal proceeds. As of the time of this report, neither the U.S. Treasury nor the DOJ had issued public statements addressing China's specific allegations.
Geopolitical Undercurrents and Market Implications
This dispute over the Bitcoin heist highlights the deep-seated mistrust between Washington and Beijing concerning cyber and financial matters. Chinese state media are framing the controversy as evidence of American "double standards" on cybersecurity, while U.S. officials view it as a provocative claim that could escalate bilateral tensions. The controversy feeds into a broader geopolitical narrative, with China having repeatedly accused U.S. cyber agencies of abusive practices, and this latest case echoes those long-standing accusations.
For cryptocurrency markets and policy, the immediate price impact appears to be minimal. Bitcoin has been trading in the range of $100,000 to $105,000 in recent weeks, remaining near its recent record highs.