China Questions US Role in Accessing Stolen LuBian Bitcoin

• LuBian Hack Overview: In December 2020, hackers stole 127,272 BTC from the Chinese mining pool, marking one of the largest crypto thefts ever reported.

• US Seizure Details: The DOJ filed a civil forfeiture complaint in October 2025 against Chen Zhi, linking the funds to his Prince Group, with assets already in government custody.

• Chinese Allegations: The CVERC report cites blockchain data showing the funds dormant for four years before transfer to US-associated addresses in July 2024, suggesting state involvement.

Discover how the US seized $14.5B in LuBian hack Bitcoin amid China’s cyber claims. Uncover the 2020 theft details, DOJ action, and blockchain evidence. Stay informed on crypto security—read now for expert insights.

What is the LuBian Bitcoin Hack and US Seizure?

The LuBian Bitcoin hack refers to a massive cyber theft in December 2020, where approximately 127,272 BTC—worth billions today—was stolen from LuBian, a prominent Chinese Bitcoin mining pool. The US Department of Justice recently filed what it calls the largest forfeiture action in its history, seizing 127,271 BTC linked to this hack from Prince Group founder Chen Zhi. This action, valued at around $14.5 billion, has sparked international scrutiny, particularly from Chinese authorities questioning the US government’s prior control over the assets.

How Did China’s Cyber Agency Respond to the US Bitcoin Seizure?

China’s National Computer Virus Emergency Response Center (CVERC), a state-backed cyber defense organization, released a detailed technical analysis on November 2025 regarding the LuBian hack. The report asserts that the US had been holding the stolen Bitcoin in custody for more than a year before the official DOJ filing in mid-October 2025. According to blockchain analytics from Arkham, an address associated with the LuBian hacker transferred 120,576 BTC to a US government-labeled address on July 5, 2024, in a single transaction.

The CVERC emphasized the unusual dormancy of these funds, which remained untouched for nearly four years post-hack—a pattern they argue deviates from typical hacker behavior driven by quick monetization. Instead, it points to a “precise operation orchestrated by a state-owned hacking organization.” Supporting this, the report notes repeated blockchain messages from Chen Zhi and his Prince Group to the hacker addresses, offering rewards for the return of the BTC in transactions of about $23 each, but receiving no replies.

Expert analysis from blockchain platforms like Arkham and Blockchain.com corroborates these movements, showing no outflows from the hacker wallets until the 2024 transfer. This adds a layer of geopolitical tension to the incident, as the seized LuBian funds represent at least 39% of the 326,500 BTC held in US government-associated addresses as of late 2025. Cybersecurity specialists, including those from independent firms, have noted that such long-term inactivity often indicates sophisticated actors with long-term strategic goals rather than profit-seeking cybercriminals.

Furthermore, the CVERC’s findings align with broader concerns over state-sponsored cyber activities in the cryptocurrency space. While the DOJ’s indictment does not detail the seizure mechanism, it confirms the funds were already under US control, stating, “Those funds are presently in the custody of the US government.” This opacity has fueled speculation, though official statements maintain the action stems from legitimate law enforcement efforts against illicit finance networks tied to Chen Zhi.

Frequently Asked Questions

What Was the Scale of the LuBian Bitcoin Hack in 2020?

The LuBian hack involved the theft of 127,272 Bitcoin from the Chinese mining pool in December 2020, making it one of the largest crypto breaches on record. The funds, originally held by Prince Group founder Chen Zhi, were dormant until 2024. This incident highlights vulnerabilities in mining operations and the challenges of securing large BTC holdings, with current valuations exceeding $14.5 billion.

Why Has the LuBian Seizure Raised Geopolitical Concerns?

The US seizure of LuBian hack Bitcoin has sparked debate due to claims by China’s CVERC that the funds were under American control long before the DOJ’s October 2025 announcement. Blockchain data shows a major transfer in July 2024, suggesting prior access. This situation underscores tensions in global crypto governance, with implications for international cyber norms and asset recovery in cross-border hacks.

Key Takeaways

• Massive Forfeiture Milestone: The DOJ’s action marks the largest Bitcoin seizure in US history, targeting $14.5 billion in funds from the LuBian hack, demonstrating aggressive enforcement against crypto-linked financial crimes.
• Dormancy Raises Red Flags: Four years of inactivity on hacker wallets, followed by a bulk transfer to US addresses, challenges conventional theft narratives and points to potential state-level involvement per Chinese analysis.
• Geopolitical Ripple Effects: Ongoing disputes between the US and China over the hack could influence future crypto regulations and international cooperation on blockchain forensics.

Source: tier10k

Conclusion

The LuBian Bitcoin hack and subsequent US seizure represent a pivotal moment in cryptocurrency enforcement, intertwining cyber theft with international relations. As the LuBian hack Bitcoin seizure unfolds, insights from the CVERC report and DOJ filings underscore the need for transparent blockchain tracking and global standards in asset recovery. With Bitcoin’s role in finance expanding, stakeholders must prioritize robust security measures—monitor developments closely to navigate this evolving landscape.

While formally filing to seize the $14.5 billion fortune in mid-October, the US government had already been holding the assets in custody, according to the indictment statement.

“Those funds are presently in the custody of the US government,” the statement noted, adding that the complaint is the “largest forfeiture action in the history of the Department of Justice.”

Transactions from “LuBian.com Hacker” addresses to “US Government: Chen Zhi Seized Funds” in July 2024. Source: Arkham

The CVERC highlighted that the US government has not disclosed in the indictment how it obtained access to the funds, and claimed the US had been in control of the assets for more than a year, citing Arkham data.

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 said the stolen Bitcoin on the LuBian hacker’s addresses had remained dormant for nearly four years following the hack until the funds were “fully taken over by the US government” last year.

CVERC said the long 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 said Zhi and his Prince Group repeatedly sent messages to the hacker address via Bitcoin transactions of roughly $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.

Chen Zhi/Prince Group repeatedly asked the hacker to return the stolen funds using blockchain messages. Source: Blockchain.com/Arkham

According to Arkham, the batch of LuBian-derived Bitcoin holdings accounts for 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 Nov. 2.