Key Takeaways
- China accuses US government of orchestrating a $13 billion Bitcoin hack from LuBian mining pool
- 127,272 Bitcoin tokens were stolen in December 2020 in one of the largest crypto thefts
- Chen Zhi, head of Cambodia’s Prince Group, is linked to the stolen funds and faces US charges
- Legal battle continues as Chen’s lawyer seeks more time to trace the Bitcoin
China’s cybersecurity authority has made explosive allegations that the US government masterminded the theft of approximately $13 billion in Bitcoin from the LuBian mining pool. The December 2020 hack, which saw 127,272 Bitcoin tokens stolen, ranks among the largest cryptocurrency thefts ever recorded.
According to China’s National Computer Virus Emergency Response Center, the operation bears hallmarks of state-backed hackers from the US. Investigators noted the slow, cautious movement of stolen funds suggested a government-level operation rather than typical criminal activity.
Bitcoin Heist Linked to Global Crypto Scam
A recent Bloomberg report reveals the stolen Bitcoin from LuBian—once among the world’s largest mining operations—is connected to tokens later seized by US authorities. American prosecutors claim these funds were tied to Chen Zhi, head of Cambodia’s Prince Group, who faces wire fraud and money laundering charges filed in October.
The report alleges American hackers may have stolen approximately 127,000 Bitcoins from Chen Zhi as early as 2020. Chinese authorities described the operation as “a classic ‘black eats black’ operation orchestrated by a state-level hacking organization.”
US prosecutors have remained silent on how they gained control of the cryptocurrency, even after the Justice Department filed a civil forfeiture case to seize the assets.
Legal Battle Over Stolen Bitcoin
Chen Zhi’s legal team has requested additional time from a US court to trace the Bitcoin stolen from the LuBian mining pool. Defense attorney Matthew L. Schwartz contends the government’s case relies on incorrect assumptions about the cryptocurrency’s movement.
Prosecutors have confirmed Chen is not in US custody following the public disclosure of charges last month. Schwartz, representing both Chen and the Prince Group, stated his team is collaborating with cryptocurrency experts to track the Bitcoin seized by US authorities over a year ago—funds originally stolen in the 2020 hack.
