China Accuses US of Stealing $14 Billion in Bitcoin in Shocking Cyberattack
Beijing, November 11, 2025 – In a stunning escalation of geopolitical tensions and a dramatic twist in the world of cryptocurrency, China is directly accusing the United States of orchestrating a massive hack and subsequent seizure of over 127,000 Bitcoin – currently valued at more than $14 billion. The claim centers around a 2020 breach of LuBian, a prominent Chinese Bitcoin mining pool, and has sent ripples through the global crypto community.
The Resurfaced Hack: A Five-Year Mystery
The 2020 hack of LuBian remained largely under the radar until recently, brought to light by research from Arkham Intelligence this past August. Now, China’s National Computer Virus Emergency Response Center (CVERC) alleges that “United States intelligence organizations” were responsible for the theft, transferring the stolen Bitcoin to wallets reportedly linked to the US Department of Justice (DOJ). This isn’t just a case of cybercrime; it’s a potential act of state-sponsored digital asset confiscation, according to Beijing.
The sheer scale of the theft – 127,272 BTC – is staggering. At the time of the hack, this represented approximately 6% of the entire Bitcoin network’s hashrate. The fact that such a significant amount of cryptocurrency could disappear for nearly five years without widespread alarm raises serious questions about transparency and security within the crypto ecosystem.
Technical Vulnerability and a Cryptographic Flaw
Investigations reveal the hack exploited a critical weakness in LuBian’s security infrastructure. The mining pool reportedly generated private keys with insufficient entropy – a measure of randomness – limiting security to a mere 32 bits. In the world of cryptography, this is akin to leaving the front door wide open. This flaw allowed attackers to access LuBian’s wallets with minimal trace, moving the funds and then letting them lie dormant for years.
“This case highlights a fundamental truth about cryptocurrency security: it’s only as strong as its weakest link,” explains blockchain security expert Dr. Anya Sharma. “Insufficient entropy in key generation is a rookie mistake, but one with potentially catastrophic consequences, as we’re now seeing.”
Geopolitical Implications and the Future of Crypto Regulation
The timing of these accusations is particularly sensitive, coinciding with increased scrutiny of cryptocurrencies by governments worldwide. China’s claim that the US illegally seized private assets challenges the legitimacy of Washington’s legal framework for crypto seizures and could reignite diplomatic tensions. This incident could force a global conversation about the rules governing digital asset ownership and the role of nation-states in the crypto space.
The LuBian affair also throws a spotlight on the often-touted “transparency” of the Bitcoin blockchain. While all transactions are publicly recorded, tracing the funds back to their origin and identifying the perpetrators requires sophisticated analysis and, in this case, a significant time delay. The prolonged silence surrounding the stolen Bitcoin and the subsequent link to the DOJ raise questions about the speed and effectiveness of current investigative processes.
As states increasingly assert control over cryptocurrencies, this case serves as a stark reminder of the potential for geopolitical conflict to spill over into the digital realm. The future of crypto regulation will likely be shaped by incidents like this, demanding greater international cooperation and a more robust security framework.
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