China Alleges U.S. Confiscated Billions in Bitcoin From 2020 LuBian Hack—Here’s Why It Matters
Bitcoin's shadow war heats up as China accuses the U.S. of seizing billions from the infamous 2020 LuBian hack. The geopolitical crypto clash just got personal.
Subheader: A Heist Within a Heist?
Sources claim the U.S. government quietly intercepted what remained of the stolen Bitcoin—adding fuel to the fire of digital asset sovereignty debates. No comment yet from the Treasury, but blockchain doesn't lie.
Subheader: The Irony of 'Recovered' Crypto
Funny how governments suddenly become blockchain experts when there's billions on the table—where was this energy during the Mt. Gox era?
Closing thought: When nation-states play hot potato with Bitcoin, retail investors get burned. As usual.
U.S. Custody Before Formal Seizure
According to China’s analysis, the U.S. government was already holding the funds well before filing the forfeiture claim in October 2025. CVERC cited blockchain data from Arkham Intelligence, which showed that nearly 120,576 BTC was transferred from an address marked “LuBian.com Hacker” to one labeled “U.S. Government: Chen Zhi Seized Funds” on July 5, 2024 – over a year earlier.
The agency noted that the stolen bitcoin had remained untouched for nearly four years, claiming such long dormancy was “inconsistent with the behavior of typical hackers” seeking profit. Instead, CVERC argued, it suggested a “coordinated operation” more typical of a state-linked actor.
Blockchain Pleas Ignored
The report also revealed that Chen Zhi and Prince Group sent multiple small Bitcoin transactions – each worth around $23 – to the hacker’s address over several years, embedding messages pleading for the return of the stolen funds and offering a reward. None of the messages were ever answered.
CVERC’s claims add a geopolitical twist to what was already considered the largest Bitcoin theft ever recorded. The case now sits at the intersection of cybercrime, international law, and global crypto politics, as both nations continue to position themselves strategically in the digital asset arena.
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Political Undercurrents
At the time of the report, the LuBian-linked Bitcoin represents roughly 39% of all BTC held in wallets associated with the U.S. government, according to Arkham.
The controversy also comes amid growing rhetoric from U.S. President Donald Trump, who recently claimed the U.S. was “far ahead of China” in crypto adoption, while acknowledging that Beijing is now “getting into it in a very big way.”
Whether CVERC’s claims hold weight remains uncertain, but the episode underscores the deepening technological and financial tensions between the world’s two largest economies – now extending firmly into the blockchain realm.
