TLDR
- China claims the U.S. seized 127,000 stolen Bitcoins valued at $13 billion in 2020 hack.
- The 2020 hack targeted LuBian mining pool and was linked to Cambodian businessman Chen Zhi.
- CVERC argues the U.S. government’s action was part of a broader operation by state-backed hackers.
- Arkham analysis traced the moved Bitcoins to U.S. government-controlled wallets in mid-2024.
- The U.S. Department of Justice denies the allegations, calling the seizure a legitimate law enforcement act.
The Chinese National Computer Virus Emergency Response Center (CVERC) has accused the U.S. government of seizing 127,000 stolen Bitcoins, valued at $13 billion. The Bitcoins, which were stolen in a 2020 hack, were originally linked to a Chinese mining pool. CVERC claims that the attack was carried out by a “state-level hacking organization” and that the U.S. government’s seizure was part of a larger operation involving the same attackers.
The 2020 Hack and Its Aftermath
The 2020 hack targeted the LuBian mining pool, where the stolen Bitcoins were first held. At the time, the attack was tied to Chen Zhi, the chairman of Cambodia’s Prince Group. Zhi is now under indictment by U.S. authorities for his alleged involvement in a large-scale cryptocurrency fraud scheme. Despite the high-profile nature of the hack, the stolen Bitcoins remained untouched for nearly four years.
In mid-2024, the seized Bitcoins were quietly moved to new wallets. Blockchain analysis firm Arkham later traced these wallets to the U.S. government. This movement triggered CVERC’s investigation into the U.S. involvement, leading to the claim that the U.S. was part of the larger operation behind the original theft.
China’s Allegations and U.S. Government’s Response
CVERC’s report disputes the U.S. government’s claim that the seized Bitcoins were simply criminal proceeds. Instead, it argues that the U.S. seizure was the culmination of a broader operation linked to the original hacking group. CVERC maintains that advanced hacking tools were used in the attack, reinforcing the belief that the perpetrators were a state-backed organization.
The U.S. Department of Justice has firmly rejected China’s claims, maintaining that the seizure was a legitimate law enforcement operation targeting illegal cryptocurrency activities. The dispute highlights rising tensions between China and the U.S. over cybersecurity and the global control of cryptocurrency assets.
