---
title: "China Blames U.S. for Largest Bitcoin Theft in History"
date: 2025-11-11
author: "Sofia Ramirez"
featured_image: "https://sqmagazine.co.uk/wp-content/uploads/2025/11/china-blames-u-s-for-largest-bitcoin-theft-in-history.jpg"
categories:
  - name: "Cybersecurity"
    url: "/cybersecurity.md"
tags:
  - name: "News"
    url: "/tag/news.md"
---

# China Blames U.S. for Largest Bitcoin Theft in History

China’s cyber defense agency has accused the United States of orchestrating a clandestine seizure of around 127,000 bitcoins worth roughly $13 billion, stolen in a 2020 hack of the Chinese mining pool LuBian.

## Quick Summary – TLDR:

- China accuses the U.S. of taking 127,000 BTC from the 2020 LuBian hack, calling it a state-backed crypto heist.
- The U.S. Justice Department says the seizure is linked to a fraud case involving Chen Zhi and was legally justified.
- China challenges the U.S. explanation, saying the behavior of the stolen BTC suggests a government-run cyber operation.
- The clash deepens tensions over crypto policy, cybersecurity, and digital sovereignty.

## What Happened?

China’s **National Computer Virus Emergency Response Center (CVERC)** released a detailed technical report claiming that the **127,000 BTC** stolen from LuBian in 2020 eventually landed in the hands of the **U.S. government**. The watchdog believes the operation was not a typical [crypto crime](https://sqmagazine.co.uk/crypto-exchange-hacks-and-security-statistics/) but a **deliberate, state-level action**. According to China, the United States did not simply seize criminal proceeds, but may have **executed the theft** or coordinated with those who did.

> 🇨🇳 China’s cybersecurity agency (CVERC) says the US seized 127,000 BTC (about $13 billion) that were stolen in a 2020 hack of the LuBian mining pool.   
>   
> The coins were linked to Chen Zhi, now under US indictment for crypto fraud, and sat untouched for years before moving to… [pic.twitter.com/aiKJN36yFg](https://t.co/aiKJN36yFg)
> 
> — Inspired Analyst (@inspirdanalyst) [November 11, 2025](https://twitter.com/inspirdanalyst/status/1988221414495986096?ref_src=twsrc%5Etfw)

 The **U.S. Department of Justice (DOJ)**, however, maintains that its forfeiture action was part of a lawful criminal case against **Chen Zhi**, the chairman of Cambodia’s **Prince Group**, who is accused of running a **massive crypto fraud scheme**.

## Chinese Allegations and Timeline

China’s report outlines several striking details:

- The hack occurred in **December 2020** but remained mostly **unknown to the public** until mid-2024.
- **Arkham Intelligence**, a blockchain analysis firm, found that **120,576 BTC** were transferred in a single July 5, 2024 transaction from a wallet labeled “LuBian.com Hacker” to one tagged as “US Government: Chen Zhi Seized Funds”.
- CVERC claims the stolen BTC were **dormant for nearly four years**, which it says is **unusual for hackers** who typically rush to cash out.
- Chinese officials argue this **carefully timed movement** is evidence of a **state-run operation**, not ordinary cybercrime.
- Messages were sent by Chen Zhi’s group to the hacker wallet offering a **reward for return**, but **no response** ever came.

## U.S. Position and Legal Context

The U.S. insists that the assets were **lawfully seized** as part of a criminal probe.

- The DOJ filed a **civil forfeiture** case in October 2024, claiming ownership of **127,271 BTC**, describing it as the **largest in U.S. legal history**.
- The U.S. has not explained **how it gained access** to the wallet holding the stolen [Bitcoin](https://sqmagazine.co.uk/bitcoin-statistics/).
- China says this lack of transparency raises **serious legal and ethical questions**.

## The Broader Implications

This dispute stretches far beyond crypto. It adds another layer to the already tense **U.S.-China relationship**, particularly around digital assets and [cybersecurity](https://sqmagazine.co.uk/cybersecurity-statistics/).

- It brings up **issues of digital sovereignty**, as China sees this as a breach of its jurisdiction.
- It creates a precedent where **state actors may be seen as players in the crypto underground**.
- It reinforces the idea that **nation-states can and will assert control** over decentralized digital wealth when convenient.

## SQ Magazine’s Takeaway

I think we’ve just stepped into a new chapter of the **global crypto game**, and it’s no longer just about criminals or developers. When **China accuses the U.S.** of pulling off the **largest Bitcoin theft in history**, it’s more than posturing. It’s a warning. Sovereign powers are now deeply embedded in the digital economy and are **willing to flex muscle over [blockchain-based assets](https://sqmagazine.co.uk/blockchain-statistics/)**. If this story holds weight, it changes everything we assumed about crypto security. Your coins might be safe from hackers, but are they safe from governments? For anyone in crypto, **this is a wake-up call**.