China accuses U.S. of orchestrating $13 billion Bitcoin theft
Journalist
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Key Takeaways
What’s China accusing the US of doing?
China’s CVERC claims the US orchestrated the 2020 hack of the LuBian mining pool that stole 127,000 Bitcoin, then seized these cash in 2024 underneath the guise of legit regulation enforcement.
How does the US justify the Bitcoin seizure?
The US Division of Justice maintains the seizure was lawful asset forfeiture tied to anti-money laundering investigations.
Beijing claims 2020 mining pool hack was a state-sponsored operation, not legit regulation enforcement.
China accused the US of stealing 127,000 Bitcoin price $13 billion in what Beijing calls a state-sponsored cyber operation disguised as regulation enforcement.
The allegation escalates crypto tensions between the world’s two largest economies.
China’s National Computer Virus Emergency Response Center [CVERC] released a report on Sunday, claiming that the U.S. orchestrated the 2020 hack of the LuBian mining pool.
The company argues the theft concerned “state-level hacking” instruments and that U.S. authorities later seized the stolen cash underneath false pretenses.
The 2020 hack
Attackers drained over 127,000 BTC from LuBian’s scorching pockets in December 2020. The cash remained dormant for almost 4 years earlier than being transferred to new addresses in mid-2024.
The U.S. Division of Justice formally introduced the seizure on October 14, 2025.
American authorities linked the Bitcoin to Chen Zhi, chairman of Cambodia’s Prince Group, who faces U.S. indictment for allegedly operating an enormous crypto fraud scheme.
CVERC disputes this narrative. The Chinese language company claims the timing and motion patterns recommend U.S. involvement from the beginning.
Beijing argues that the “delayed and quiet” transfers align with authorities operations moderately than typical prison conduct.
Competing narratives
The U.S. maintains that the seizure adopted customary authorized procedures tied to anti-money laundering investigations.
The Justice Division frames the motion as legit asset forfeiture linked to Chen Zhi’s alleged fraud community.
CVERC’s report calls the scenario an “inner showdown amongst thieves.” The company estimates that solely a portion of the seized funds originated from unlawful sources, with roughly 17,800 BTC mined independently and a pair of,300 BTC earned by means of legit pool funds.
Geopolitical flashpoint
The dispute transforms Bitcoin from digital gold right into a diplomatic weapon. The 127,000 BTC represents roughly 0.65 p.c of circulating provide. This can be a important quantity that might impression markets if tensions escalate.
At Bitcoin’s October 2025 peak of $126,000, the seized cash had been price over $16 billion. Present valuations place the holdings at roughly $13.3 billion.
The accusation arrives amid broader US-China tensions over know-how and cybersecurity.
For crypto markets, the case raises uncomfortable questions on whether or not decentralized belongings stay impartial when superpowers conflict.
The U.S. has not issued a proper response to CVERC’s allegations. The Justice Division continues to characterize the seizure as a lawful enforcement motion in opposition to prison proceeds.
