LuBian's $3.5B Bitcoin Hack: A Crypto History Mystery
In 2020, Chinese mining pool LuBian suffered a massive security breach, losing 127,426 Bitcoin (BTC). At the time, this haul was valued at approximately $3.5 billion, making it the largest crypto hack in history. Blockchain analytics platform Arkham Intelligence recently uncovered the details of this unprecedented heist.
The Timeline of the LuBian Hack
Arkham Intelligence revealed that the hack occurred on December 28, 2020, targeting LuBian, which was then the sixth-largest BTC mining pool. The attackers managed to steal approximately 90% of the pool’s Bitcoin holdings before LuBian could secure its remaining assets.
- Initial Attack: December 28, 2020
- Bitcoin Stolen: 127,426 BTC
- Recovery: LuBian moved 11,886 BTC to recovery wallets
Neither LuBian nor the hackers disclosed the incident, leaving it undiscovered until Arkham's recent analysis. After the hack, LuBian embedded OP_RETURN messages into 1,516 different wallet addresses belonging to the hackers, costing them about 1.4 BTC.
Vulnerability and Exploitation
Arkham’s investigation suggests that LuBian used an algorithm to generate private keys that was susceptible to brute-force attacks. This vulnerability likely allowed the hackers to gain access and execute the massive theft.
At current prices, the stolen Bitcoin is worth about $14.5 billion. This attack underscores the critical importance of proactive safety measures and robust private key management in the crypto space. Users must rely on the most secure random number generators to create keys.
LuBian Hack vs. Other Major Crypto Heists
Prior to the revelation of the LuBian hack, the ByBit exchange hack in February, which resulted in a $1.5 billion loss, was considered the largest crypto hack in history. That attack was attributed to a compromised SafeWallet developer machine. In April, an elderly individual lost $330 million in Bitcoin through a social engineering attack.
Notable Crypto Hacks:
- LuBian (2020): $3.5 billion
- ByBit (2024): $1.5 billion
- Social Engineering Attack (2024): $330 million
These incidents highlight the increasing sophistication of cyber threats in the cryptocurrency ecosystem and the pressing need for enhanced security protocols. Platforms like Codeum provide essential services, including smart contract audits, KYC verification, and security consultations, to help projects mitigate these risks and ensure the safety of their users' assets.