China Accuses United States Of Bitcoin Hack Theft
The world of Cryptocurrency is heating up with many nations now rushing in to the sector ever since Trump loosened restrictions and launched he's own Crypto company netting billions in profits changing the tide for other nations to dive into the sector. It wasn't too long ago that China banned Bitcoin and moved in some heavy restrictions even using steam rollers to crush mining equipment and shut down old coal power plants that were being used to power the mining equipment.
But recently, China has moved to unban Crypto with changes coming in later this year or early 2026 with a lot of the moves related to BRICS nations looking at alternative ways to enhance their economy and bypass global sanctions.
But trouble is brewing at a global level threatening geopolitical issues with China accusing the United States of undertaking a crypto hack stealing billions in Bitcoin.
China's Accusations
China has publicly accused the United States of orchestrating one of the largest Bitcoin thefts in history alleging the nation stole 127,000 BTC which is now estimated to be worth a whopping USD 13 billion. The allegations, issued by China’s National Computer Virus Emergency Response Center (CVERC) add new chapter to a years long mystery surrounding the 2020 hack of the LuBian Bitcoin mining pool, once among the largest in the world.
According to CVERC’s newly released technical report, the U.S. government did not simply recover stolen cryptocurrency it allegedly stole it. In China’s framing, the U.S. masked a state level hacking operation beneath the guise of a law enforcement seizure, using advanced cyber tools more closely associated with intelligence agencies than ordinary criminal networks.
The U.S has rejected the accusation entirely. Officials maintain the Bitcoin was lawfully seized as part of an ongoing criminal case targeting Chen Zhi, the Cambodian chairman of Prince Group, who faces U.S. charges including wire fraud conspiracy and money laundering which we covered in yesterdays article relating to the pig butchering scams using forced labour..
With both superpowers standing firm, the battle over 127,000 BTC is rapidly becoming a high stakes flashpoint in the broader contest for global cyber dominance.
Mystery Or Crime?
The controversy centres on the December 2020 theft of 127,272 BTC from LuBian. At the time, the hack drew little attention outside crypto forensics circles, primarily because the stolen tokens sat untouched for nearly four years.
The newly published CVERC report claims the attack displayed hallmarks of a “state level hacking organization”, citing sophisticated tools, stealth and long term operational planning. China asserts that such precision strongly suggests a government directed operation pointing the finger squarely at Washington.
For years, the stolen Bitcoin remained completely dormant on chain. Then, in mid 2024, the stash suddenly began moving. Blockchain intelligence firm Arkham later identified the receiving wallets as belonging to the U.S. government, sparking immediate speculation.
The U.S. soon confirmed it had seized the assets but insisted the Bitcoin represented criminal proceeds tied to Chen Zhi. According to an October 2025 indictment, Chen and his alleged co-conspirators used illicit funds to finance crypto mining operations, including LuBian. Prosecutors allege that LuBian wallets “received large sums of cryptocurrency from sources unrelated to new mining,” raising suspicions of fraudulent origins.
While no smoking gun has been presented, China’s accusations signal a dramatic new phase in the global struggle over digital assets and cyber power. What began as a governments calling Cryptocurrency a “scam” has now transformed into a geopolitical flashpoint with billions of dollars at its centre.
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Posted Using INLEO
