In a dramatic escalation of crypto-geopolitical tensions, China’s national cybersecurity agency has formally accused the United States government of orchestrating a state‐level hacking operation that stole approximately 127,000 bitcoin (BTC)—valued at roughly $13 billion—from the China-based mining pool LuBian Mining Pool in December 2020.
The Allegations in Detail
The China National Computer Virus Emergency Response Center (CVERC) claims that the hack of the LuBian mining pool bore all the telltale signs of an operation run by a nation state rather than typical criminals. Key indicators included the unusually slow and silent movement of the stolen bitcoin, and the extended period during which the assets remained untouched.
According to CVERC, the U.S. may have quietly taken control of those bitcoins under the guise of a law-enforcement seizure.
China points to the fact that while the bitcoins were stolen in 2020, the U.S. government’s announcement of a seizure linked to those funds occurred only in late 2025, raising questions about what happened in the interim.
U.S. Response and the Legal Case
The U.S. government, through its United States Department of Justice (DOJ), maintains that the bitcoin in question were legally seized in connection with fraud, money-laundering and criminal charges brought against Chen Zhi (chairman of the Prince Holding Group).
Washington has not admitted to hacking, instead emphasising that this was a law-enforcement action, not an intelligence operation.
Yet blockchain analysis firms such as Arkham Intelligence report that the wallet addresses now controlled by the U.S. match those drained during the 2020 flaw in the LuBian pool, which bolsters China’s claims of covert takeover rather than conventional seizure.
Why This Matters
A crypto heist turned geopolitical flashpoint: The sheer size of the theft and the alleged state-actor involvement mark this case as one of the most significant intersections of cryptocurrency and international relations.
Digital-asset sovereignty in focus: China’s allegation signals concerns over how governments might wield blockchain surveillance, asset control and cyber-operations in the 21st century.
Market implications: With $13 billion in BTC caught in the dispute, analysts warn of potential fallout for crypto markets if the assets move, are liquidated, or become subject to enforcement programmes.
Precedent for future enforcement: The case could shape how states treat cryptocurrency theft, cross-border seizures, and the blend of law-enforcement with possible intelligence operations.
What Comes Next?
Much hinges on transparency: neither China nor the U.S. has publicly released full forensic evidence proving hacking vs. lawful forfeiture. As litigation in the U.S. case advances, analysts will watch for:
On-chain movements of the seized bitcoin.
Legal decisions regarding ownership and treatment of assets.
Any diplomatic ramifications between Washington and Beijing if the allegations are not resolved.
Broader regulatory and security responses in the crypto-asset realm.
12 November 2025
Country:
USA | China
Topic:
Law & Crime | Hoarding