"Beijing's National Computer Virus Emergency Response Center (CVERC) said the theft was not the work of outside hackers. Instead, the agency called it a "state-level operation" allegedly orchestrated by U.S. intelligence. The seized Bitcoin now sits at roughly $13.3 billion. The U.S. Department of Justice said the action followed standard legal procedures. Still, China called the move a "state-level cyber theft." Analysts say the dispute has turned a legal matter into a major geopolitical standoff."
"The LuBian hack occurred in December 2020. Hackers drained the pool of more than 127,000 BTC in under two hours. Blockchain forensics suggest the breach stemmed from weak private key generation, not a typical external hack. Analysts have also noted a "dormancy phase" in which the coins remained untouched for nearly four years. In 2024, the Bitcoin was moved to new wallets, later identified by tracking firms as controlled by the U.S. government. Beijing sees this as proof of a coordinated, state-level operation."
China alleges the United States seized roughly 127,426 BTC taken from the LuBian mining pool in December 2020, valuing the stash at about $13.3 billion. Beijing's CVERC called the action a state-level operation allegedly orchestrated by U.S. intelligence, while the U.S. Department of Justice said the seizure followed standard legal procedures. Blockchain forensics point to weak private key generation as the cause of the original loss, and the coins remained dormant for nearly four years before moves in 2024 traced to wallets identified by tracking firms as controlled by the U.S. government. The holding equals about 0.65% of Bitcoin supply and could tighten liquidity amid continued ETF inflows.
Read at Bitcoin Magazine
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