China's national cyber defense agency has put forth significant claims regarding the alleged involvement of the United States in the multibillion-dollar hack of LuBian, once a prominent 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 127,272 Bitcoin (BTC) stolen in the LuBian hack.
Although the hack occurred in December 2020, it largely remained unknown to the public until recently. Arkham reported it in August, characterizing it as the "largest ever" Bitcoin hack.
The CVERC's analysis emerged weeks after the US filed a civil forfeiture complaint for 127,271 BTC, valued at approximately $14.5 billion, in a criminal case against Prince Group founder Chen Zhi. Zhi reportedly owned the 127,272 BTC held by LuBian before the hack.
US Government Already Held Seized Bitcoin, China Claims
While formally seeking to seize the $14.5 billion fortune in mid-October, the US government had already taken custody of the assets, according to the indictment statement.
"Those funds are presently in the custody of the US government," the statement read, adding that the complaint represents the "largest forfeiture action in the history of the Department of Justice."
The CVERC highlighted that the US government did not disclose in its indictment how it gained access to the funds. It asserted that the US had been in control of the assets for over a year, citing data from Arkham.
According to Arkham data, an address labeled "LuBian.com Hacker" sent 120,576 BTC—almost its entire holdings—to an address labeled "US Government: Chen Zhi Seized Funds" in a single transaction on July 5, 2024.
The CVERC stated that the stolen Bitcoin held by the LuBian hacker remained dormant for nearly four years after the hack until the funds were "fully taken over by the US government" last year.
CVERC argued that the prolonged dormancy of the stolen Bitcoin before the US seizure "is clearly inconsistent with the nature of ordinary hackers who are eager to cash out and pursue profits."
It is more like a precise operation orchestrated by a state-owned hacking organization.
The CVERC report also mentioned that Zhi and his Prince Group repeatedly sent messages to the hacker address via Bitcoin transactions of approximately $23 each, pleading for the return of the stolen BTC and offering a reward, but received no response.
The report adds a geopolitical dimension to one of the most mysterious crypto thefts in history.
According to Arkham, the batch of LuBian-derived Bitcoin holdings constitutes at least 39% of all 326.5 BTC ($34.2 billion) held in US government-associated addresses at the time of publication.
US President Donald Trump recently declared that the US is "far ahead of China and everybody else" in cryptocurrency adoption. "China is getting into it in a very big way right now," he said in an interview with CBS News’ 60 Minutes on November 2.