**China Accuses U.S. Government of Involvement in Massive 2020 Bitcoin Heist**
*November 9, 2025* — The China National Computer Virus Emergency Response Center (CVERC) has publicly accused the U.S. government of participating in a large-scale Bitcoin theft. According to Chinese officials, approximately 127,000 bitcoins—valued at roughly $13 billion at current prices—were stolen from the LuBian mining pool in a 2020 cyberattack and eventually ended up in U.S. possession. If proven true, this would rank as one of the largest cryptocurrency thefts in history.
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### Details of the 2020 LuBian Mining Pool Hack
Chinese state reports reveal that the LuBian mining pool was compromised on December 29, 2020. At the time, LuBian, owned by Chen Zhi, held bitcoins worth about $5 billion, which now approximate $15 billion due to price appreciation.
Before the breach, LuBian operated mining farms in both China and Iran, controlling nearly 6% of the global Bitcoin mining capacity. Following the attack, the mining pool was inactive for a period. During this downtime, LuBian posted messages on the blockchain urging hackers to return the stolen funds in exchange for a reward.
In mid-2024, the stolen bitcoins were quietly moved to new wallets. Blockchain intelligence firm Arkham subsequently identified these wallets as being controlled by the U.S. government. The CVERC report argues that this points to the same “state-level hacking organization” responsible for the initial breach orchestrating a final transfer of the coins into U.S. custody.
“The U.S. government likely stole Chen Zhi’s 127,000 bitcoins as early as 2020 using hacking techniques,” the Chinese report concluded, describing the incident as a “typical case of ‘thieves falling out’.”
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### U.S. Response and Official Position
U.S. authorities firmly dispute the Chinese allegations. On October 14, 2025, the Department of Justice (DOJ) unsealed an indictment charging LuBian’s owner, Cambodian businessman Chen Zhi, with wire fraud and money laundering linked to a large-scale “pig butchering” crypto scam.
Simultaneously, the DOJ announced a civil forfeiture action seizing approximately 127,271 bitcoins connected to Chen’s fraudulent activities. The DOJ press release clearly states these bitcoins were “proceeds and instrumentalities” of Chen’s scams and were stored in wallets controlled by him.
This forfeiture represents “the largest forfeiture action in the history of the Department of Justice.” Senior U.S. officials have described the seizure as a landmark action against human trafficking and fraud, emphasizing that the bitcoins were obtained through illicit schemes—not via hacking the LuBian mining pool.
Neither the DOJ nor the FBI have indicated any involvement of U.S. agents in hacking operations. In response to the Chinese report, U.S. spokespeople have reiterated that the bitcoin seizure was a legitimate law enforcement action targeting criminal proceeds. As of this writing, neither the U.S. Treasury nor the DOJ have issued public comments addressing China’s specific allegations.
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### Geopolitical Undercurrents and Market Implications
This ongoing dispute over the Bitcoin heist highlights the deep mistrust between Washington and Beijing on cybersecurity and financial matters. Chinese state media portray the case as evidence of American “double standards” in cybersecurity, while U.S. officials view the accusations as provocative and potentially inflaming bilateral tensions.
The controversy unfolds against a backdrop of repeated Chinese accusations against U.S. cyber agencies for alleged abusive tactics. This latest incident echoes those prior claims and adds strain to already tense relations.
From a cryptocurrency market perspective, the immediate impact appears limited. Bitcoin has been trading between $100,000 and $105,000 in recent weeks, hovering near its all-time highs.
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**Stay tuned for further updates as the situation develops.**
https://bitcoinethereumnews.com/crypto/breaking-china-accuses-u-s-in-13bn-crypto-dispute/