China is questioning how the United States gained control of one of the largest stolen Bitcoin troves in history, suggesting the transfer may have been part of a coordinated operation rather than a simple seizure.
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China’s National Computer Virus Emergency Response Center (CVERC) released a report on Sunday alleging that the U.S. had possession of more than 127,000 Bitcoin tied to the 2020 LuBian mining pool hack long before it filed a case to claim the funds. The allegation adds a geopolitical twist to what was already one of the biggest and most mysterious crypto thefts ever recorded.
U.S. Bitcoin Seizure Draws Scrutiny from China
In October, the U.S. Department of Justice announced what it called the largest forfeiture in its history, targeting 127,271 Bitcoin worth about $14.5 billion. The funds were linked to Chen Zhi, founder of the Prince Group, who reportedly owned the Bitcoin before the LuBian pool was hacked in 2020.
However, CVERC’s analysis claims the U.S. was already in control of the assets before that announcement. Blockchain data from Arkham Intelligence shows that in July 2024, an address labeled “LuBian.com Hacker” sent nearly all its Bitcoin holdings, or 120,576 BTC, to an address tagged “U.S. Government Chen Zhi Seized Funds.”
CVERC said the four-year dormancy of the stolen Bitcoin followed by its sudden transfer was “clearly inconsistent with the nature of ordinary hackers who are eager to cash out.” The agency suggested the seizure appeared to be “a precise operation orchestrated by a state-owned hacking organization.”
China Links Years of Silence to What It Calls a Coordinated Bitcoin Seizure
The LuBian hack took place in December 2020, draining more than 127,000 Bitcoin from a Chinese mining pool. For years, the funds remained untouched. Blockchain records show that Chen Zhi repeatedly sent small Bitcoin payments of roughly $23 to the hacker’s address, asking for the funds to be returned. The hacker never replied.
When the Bitcoin suddenly moved in mid-2024, the entire balance landed in wallets linked to the U.S. government, according to Arkham data. The CVERC report questions how U.S. authorities gained access and why the process was not disclosed in official filings.
Bitcoin Seizure Adds Fuel to Growing U.S.–China Crypto Power Struggle
The timing of the report comes shortly after U.S. President Donald Trump said America was “far ahead of China and everybody else” in crypto adoption, noting that China was “getting into it in a very big way.”
For Beijing, the LuBian case feeds into growing concerns that digital assets have become another arena of strategic competition. Arkham data indicates that the seized Bitcoin now represents about 39 percent of the $34 billion in crypto assets currently held by the U.S. government.
The U.S. has not publicly explained how it obtained access to the stolen funds. Whether it was through law enforcement coordination, technical intervention, or another means, the unanswered questions are fueling tension between the world’s two largest economies at the intersection of crypto and national security.
At the time of writing, Bitcoin is sitting at $103,292.
