China accuses U.S. of seizing $13B in Bitcoin tied to 2020 LuBian pool hack
China’s National Computer Virus Emergency Response Center (CVERC) has accused the U.S. government of participating in one of the largest cryptocurrency heists in history, reigniting tensions over cyber operations and financial sovereignty.
In a report released Sunday, CVERC claimed that the U.S. Department of Justice (DOJ) wrongfully seized 127,000 Bitcoin (BTC) — worth roughly $13 billion — originally stolen in a 2020 hack targeting the LuBian mining pool, a major Chinese crypto operation, reports CoinDesk.
According to the report, the BTC was initially tied to Chen Zhi, chairman of Cambodia’s Prince Group, who was later indicted by U.S. authorities for running a large-scale crypto fraud network. The Chinese watchdog said its investigation suggests that the LuBian theft was executed with state-level hacking tools, indicating possible involvement of advanced cyber actors.
Chinese report disputes U.S. law enforcement narrative
The CVERC’s findings, reported by state-run newspaper Global Times, challenge the U.S. narrative that the Bitcoin in question represented criminal proceeds lawfully seized by the DOJ. Instead, Chinese analysts argue that the U.S. operation may have continued the same hacking activity that originally stole the funds, effectively framing it as a covert appropriation rather than recovery.
The report presents a timeline showing that the stolen Bitcoin remained dormant for nearly four years, only to be moved to new blockchain wallets in mid-2024. Blockchain intelligence firm Arkham later tagged these wallets as belonging to the U.S. government, lending credence to CVERC’s claims. Beijing’s cybersecurity agency characterized the episode as part of a broader pattern of U.S. “cyber intrusion and digital asset manipulation,” escalating its rhetorical campaign against Western control of global crypto infrastructure.
Washington defends seizure as legitimate enforcement action
U.S. authorities have not publicly responded to the accusations, but officials have consistently maintained that such Bitcoin seizures stem from lawful forfeiture of illicit assets tied to criminal activity. The Department of Justice has conducted several high-profile crypto seizures in recent years, including assets linked to Silk Road and Bitfinex hacks.
However, this latest controversy could deepen geopolitical frictions at a time when both nations are seeking dominance in cybersecurity and blockchain oversight. Analysts warn that if Beijing’s claims gain traction, it could be used to justify tighter domestic controls over crypto mining and asset transfers within China. The case underscores how Bitcoin’s transparent blockchain can still become a battleground for state-level accusations, with both Washington and Beijing leveraging digital forensics as tools of influence in the global financial system.
Recently we wrote that the Bank of England (BoE) has taken a major step toward stablecoin regulation, releasing a consultation paper on Monday outlining how it plans to supervise sterling-denominated “systemic stablecoins.”
Latest Bitcoin News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
