Recent revelations have intensified global scrutiny over cryptocurrency conflicts as China accuses the United States of seizing $13 billion in Bitcoin linked to a 2020 mining pool hack. The Chinese National Computer Virus Emergency Response Center (CVERC) issued a statement alleging that the U.S. government confiscated 127,000 stolen Bitcoins, reportedly tied to the infamous LuBian mining pool breach.
Details Around the Alleged Cryptocurrency Seizure
According to Chinese authorities, the original hack—carried out by a so-called “state-level hacking organization”—targeted the LuBian mining pool in December 2020. The attackers exploited weak 32-bit key generation protocols, pilfering over 90% of LuBian’s holdings, which accounted for 6% of the global Bitcoin hash rate at the time. These stolen Bitcoins remained untouched for nearly four years before being moved in mid-2024. Identified wallets suggested the involvement of the U.S. government.
In October 2025, the U.S. Department of Justice (DoJ) announced charges against Chen Zhi, chairman of Cambodia’s Prince Group, for orchestrating a large-scale cryptocurrency fraud scheme. Notably, the 127,000 Bitcoins seized by the U.S. aligned closely with the funds stolen from LuBian. Blockchain analytics firm Arkham confirmed that these wallets were tied to the U.S. government, revealing that the amount seized now accounts for 38.9% of America’s total Bitcoin holdings, valued at $34.34 billion as per the latest data.
Tension Against the Backdrop of Economic Rivalry
This case emerges amid intensifying economic tension between the U.S. and China, with cryptocurrency at the forefront of their financial disputes. In 2021, China banned all cryptocurrency transactions and mining operations, citing financial stability concerns while focusing on its state-controlled Central Bank Digital Currency (CBDC) development. The United States, on the other hand, has progressively increased its involvement in crypto regulation and asset management through operations like the one tied to the LuBian hack.
Spotlight on Security and Financial Transparency
The LuBian hack exposed significant vulnerabilities in cryptocurrency protocols, serving as a stark reminder of the importance of robust digital asset security systems. Platforms like eToro provide secure environments for managing cryptocurrencies while educating traders on reducing risks.
Whether the accusations hold true remains under investigation, but this incident underscores pressing questions around cryptocurrency governance, global cooperation, and ethical practices. As blockchain technology continues to expand, both its promise and its pitfalls warrant critical examination.
