China Accuses the U.S. of Stealing 127,000 Bitcoins from Mining Pool LuBian
A new geopolitical scandal has erupted after China’s cybersecurity agency CVERC accused the United States of unlawfully seizing 127,271 bitcoins — assets allegedly stolen from the Chinese mining pool LuBian back in 2020.
From a 2020 Hack to a 2025 Diplomatic Crisis
According to the report published by the state-run Global Times, the confiscated bitcoins match the exact transaction pattern of coins stolen during the December 2020 hack of the LuBian mining pool. At the time, LuBian had appealed to the unidentified hackers over 1,500 times, offering a reward for the safe return of its assets — but never received a reply.In June 2024, the long-dormant bitcoin stash suddenly moved to a new wallet. Four months later, the U.S. Department of Justice announced criminal charges against Chinese national Chen Zhi for money laundering and fraud, claiming the 127,000 BTC were “proceeds of criminal activity” under his control. China now argues the DOJ’s action was an attempt to legitimize a prior theft.
CVERC’s Findings Raise Serious Allegations
The Chinese Cybersecurity Vulnerability Emergency Response Center (CVERC) claims blockchain forensics confirm that the bitcoins seized by U.S. authorities are the same coins lost by LuBian. Independent crypto investigator ZachXBT also suggested that either U.S. entities conducted the original hack or later received the stolen funds through intermediaries.“This case suggests state-level crypto appropriation under the guise of law enforcement,” one Beijing-based cybersecurity analyst told local media. “If verified, it could mark a new era of digital asset conflicts between nations.”
Washington Denies the Accusations
The U.S. government firmly denies the allegations. The DOJ insists that the confiscated bitcoins were directly linked to Chen Zhi’s personal wallets and were seized in accordance with U.S. criminal proceedings. Officials argue that private keys were under Chen’s control, which legally justifies the seizure.Meanwhile, Chinese state outlets are portraying the case as an act of “digital expropriation,” accusing Washington of hiding behind legal rhetoric to acquire billions in bitcoin reserves. The Global Times called for an international audit of the blockchain evidence and urged greater transparency from U.S. agencies.
A $9 Billion Flashpoint in the Crypto Cold War
At current market prices, the 127,000 BTC in question are worth over $9 billion. The confrontation highlights growing geopolitical friction over control of digital assets — and raises the possibility that bitcoin may soon become the next battleground in the emerging technological Cold War between China and the United States.Editorial Team — CoinBotLab