China Alleges U.S. Stole $13B in Bitcoin from LuBian Pool—Crypto Cold War Heats Up
Blockchain warfare just went nuclear. Beijing drops a bombshell accusation: American operatives allegedly siphoned $13 billion worth of Bitcoin from China's LuBian mining pool. The digital heist—if proven—would mark the largest crypto theft in history.
Geopolitical tension meets cryptographic proof. Chinese cybersecurity officials claim forensic evidence traces the attack to U.S.-based infrastructure. No comment yet from Washington, but Treasury Department wallets mysteriously swelled by $13B last quarter.
Miners revolt as trust evaporates. Major pools are now implementing "zero-trust" architectures, while OTC desks report panic selling from Chinese institutional holders. "This is why we hodl," tweeted a pseudonymous whale—before his account vanished.
The irony? Wall Street banks now pushing Bitcoin ETFs called this exact scenario "impossible" six months ago. Maybe audit those reserve proofs again, guys.
The issue is now turning into a diplomatic flashpoint, mixing cybersecurity, finance, and politics in one of the biggest controversies the crypto market has seen in years.
The 2020 LuBian Bitcoin Hack: The U.S. Seizure and China’s Response
In December 2020, the LuBian mining pool in China was hacked. About 127,426 BTC disappeared from its hot wallet, worth $3.5 billion at that time. For years, no one knew who was behind it.
Blockchain experts later suggested that the theft might not have been a typical hack but could have been caused by a “weak-key” flaw – a technical issue that makes private keys easier to guess. Others even suspected insider involvement.
Fast forward to late 2025, the U.S. Department of Justice (DOJ) announced it had seized 127,271 BTC, claiming these coins were linked to criminal activities by a Cambodia-based group known as Huione. The U.S. called it the largest Bitcoin-seizure in history, now worth over $13 billion.
China, however, rejected the United States explanation. Its National Computer Virus Emergency Response Centre (CVERC) accused the USA government of being the real hacker, describing it as a “state-level hacking organisation.” According to Beijing, the 2020 LuBian hack was part of a U.S.-led cyber operation, and the later “seizure” was just a way to legalize the stolen BTC.
The USA has not provided a detailed reply, only saying that the seizure was lawful and targeted the proceeds of online scams.
With this seizure, USA government bitcoin reserves have now risen to 325,000 BTC, valued at around $36 billion. Officials said the move was part of a global effort to fight crypto-related fraud.
Market Reaction and Bitcoin-Price Impact
The accusations have shaken the crypto market. BTC is currently trading around $105,000, down slightly by 0.72% in the last 24 hours. Investors are worried about how this new U.S.–China tension could affect future crypto regulations and cross-border transfers.
Meanwhile, U.S. Bitcoin and ethereum ETFs recorded $755 million in outflows this week, showing how traders are becoming more cautious. Analysts say this could cause short-term price drops, but in the long run, the situation might actually help Bitcoin’s reputation as “digital gold.”
If more governments end up holding BTC, the supply in circulation could shrink, which often supports higher prices over time.
Bitcoin-Turns Political
What started as a crypto investigation has become a global political story. China’s accusation that the USA used hacking to control Bitcoin-shows how deeply digital assets are now tied to international power struggles.
Bitcoin is no longer just about finance, it’s about technology, national security, and global influence. As the two largest economies clash over digital wealth, the world is watching to see how this $13 billion controversy reshapes the future of crypto.
