China Accuses U.S. of Seizing 127,000 Bitcoin Stolen from Chinese Miner
China and the U.S. are in a new dispute about Bitcoin. China says the U.S. secretly took 127,000 BTC. These bitcoins were stolen from a Chinese mining company called LuBian in 2020. The coins are worth about $13 billion today.
What Happened to LuBian’s Bitcoin?
On December 29, 2020, hackers stole 127,000 BTC from the LuBian mining pool. This happened in just two hours. The bitcoins were worth around $3.5 billion at that time. After the hack, the coins did not move for almost four years. Usually, stolen coins get moved or sold quickly. But these bitcoins stayed in the same wallets.
China’s National Computer Virus Emergency Response Center (CVERC) said the hack was done with advanced tools. They believe only a state-level group could have done it. In simple words, they think it was a government, not ordinary hackers.
Efforts to Recover the Stolen Bitcoin
Chen Zhi, chairman of Cambodia’s Prince Group, owned the stolen bitcoins. His company tried to get the coins back. Between 2021 and 2022, they sent over 1,500 messages on the Bitcoin network. These messages asked the hackers to return the funds and offered a reward. But the hackers did not reply publicly.
U.S. Government’s Role and Claims
In mid-2024, the stolen bitcoins started moving again. Blockchain tracking firms like Arkham Intelligence and Elliptic followed the coins. On October 14, 2025, the U.S. Department of Justice (DOJ) announced it seized 127,000 BTC linked to Chen Zhi and his company. The DOJ charged Chen with digital asset fraud and money laundering.
The U.S. says it did not hack anyone. Instead, the government claims it took control of the bitcoins during a legal investigation. The DOJ calls the coins “criminal proceeds,” meaning they came from illegal activities. However, the DOJ did not say how it got the private keys to the bitcoin wallets.
Technical Findings on the Bitcoin Theft
Independent researchers confirmed some parts of the U.S. story. Experts from Arkham, MilkSad, and Elliptic found that LuBian wallets used weak random number software. This mistake made it easier for hackers to guess private keys and steal the bitcoins.
One report showed that the wallet software used a bad random number generator called MT19937-32 PRNG. It did not produce enough randomness when creating private keys. This flaw caused the wallets to be less secure.
China Disputes the U.S. Explanation
China rejects the U.S. version of events. The CVERC says the timing and movement of the bitcoins suggest the U.S. had control over them long before the 2025 seizure. They say the bitcoins came from the LuBian hack in 2020.
China also disputes the U.S. claim that all the coins were linked to crime. According to CVERC, about 17,800 BTC came from mining, 2,300 from pool rewards, and 107,000 from exchanges. They say these funds were not illegal.
Political Impact and Global Tensions
This case is not only about technology but also politics. China sees it as U.S. interference and a fight for digital power. The U.S. says it is just fighting crime. Experts say this conflict is part of a bigger battle over technology and global influence.
Both China and the U.S. seem interested in controlling large bitcoin reserves. They do not want to buy bitcoin but prefer to seize it by force. Some believe this conflict might affect bitcoin’s price. Large bitcoin moves by governments can cause market swings.
What’s Next?
Right now, the 127,000 BTC remain under U.S. control. China continues to accuse the U.S. of hacking, while the U.S. says it followed the law. Both sides agree the LuBian hack revealed serious wallet security problems. How this dispute will end is still unclear.
