China Accuses US of Stealing $13 Billion in Bitcoin: What's Going on?

Chinese analysts from the National Computer Virus Emergency Response Center (CVERC) have published a report alleging that the US government illegally confiscated 127,000 bitcoins, currently worth approximately $13 billion. These bitcoins were stolen in a hack of the Chinese mining pool LuBian in December 2020.

History of Bitcoin Theft

In late 2020, the LuBian mining pool, owned by Prince Group founder Chen Zhi, was the victim of a hacker attack in which approximately 127,272 BTC were stolen. At the time of the theft, these coins were worth approximately $3.5 billion, but their price has since increased significantly. This attack resulted in the virtual closure of the mining pool and the loss of over 90% of its assets.

Accusations against the US

A CVERC report published in the Chinese state-run Global Times claims that "the US government likely stole 127,000 bitcoins from Chen Zhi back in 2020 using hacking techniques." The stolen coins remained untouched for nearly four years, during which time LuBian sent over 1,500 messages to the hackers asking for the assets to be returned, offering a reward, but there was no response.

Transfer of Stolen Coins and Criminal Charges

In June 2024, the stolen bitcoins were transferred to a new wallet, and in October, the US Department of Justice filed criminal charges against Chen Zhi and announced the confiscation of the assets. According to the CVERC report, the bitcoins confiscated by the US government match those stolen by hackers from the LuBian pool in 2020.

Bitcoin Origins

The report's authors also determined the origin of Chen Zhi's bitcoins. According to their data, approximately 17,800 coins were mined, approximately 2,300 coins were obtained through pool payouts, and approximately 107,100 coins were obtained from exchanges and other sources. These preliminary findings cast doubt on the US Department of Justice's assertions regarding the legality of the asset seizures.

In Conclusion

Thus, the situation surrounding the bitcoin confiscation continues to generate controversy and tension between China and the US, raising questions about the legality of the US authorities' actions and the future of the cryptocurrency market.