China's Allegations of U.S. Involvement in Massive Bitcoin Theft

Overview

China has leveled accusations against the United States, claiming that the U.S. orchestrated a massive Bitcoin theft amounting to $13 billion. This has intensified the ongoing crypto tensions between the two global powers.

Details of the Accusation

According to China's National Computer Virus Emergency Response Center (CVERC), the U.S. was behind the 2020 hack of the LuBian mining pool, which resulted in the theft of 127,000 Bitcoin. CVERC alleges that the U.S. later seized these coins under the pretense of legal enforcement.

U.S. Response

The U.S. Department of Justice defends the seizure, stating it was a lawful asset forfeiture linked to anti-money laundering efforts. They associate the Bitcoin with Chen Zhi, a Cambodian business figure accused of running a large-scale crypto fraud.

The 2020 Hack

The LuBian mining pool experienced a significant breach in December 2020, losing over 127,000 BTC. These coins remained unmoved for years until they were relocated in 2024. The U.S. officially announced the seizure in October 2025.

Conflicting Perspectives

While the U.S. claims the seizure was part of standard legal procedure, CVERC suggests it was a cover for state-sponsored hacking. The Chinese agency notes that the movement of the coins suggests governmental involvement.

Geopolitical Implications

The incident has transformed Bitcoin into a tool of geopolitical contention. With the seized Bitcoin representing a significant portion of the circulating supply, market impacts could ensue if tensions escalate further. This development comes amidst broader U.S.-China disagreements over technology and cybersecurity.

The U.S. has yet to formally respond to the latest allegations, maintaining the stance that the seizure was a legitimate enforcement action against illicit activities.