China Accuses U.S. of Seizing 127,000 Stolen Bitcoin

TLDR

• CVERC claims U.S. seized 127,000 stolen Bitcoin worth $15 billion.
• Chen Zhi linked to LuBian mining pool hack in 2020.
• Bitcoin remained stationary for four years before moving to U.S. wallets.

China’s National Computer Virus Emergency Response Center (CVERC) has accused the U.S. government of seizing 127,000 stolen Bitcoin. The value of this Bitcoin is estimated to be between $13 billion and $15 billion. These bitcoins were allegedly taken from the LuBian mining pool in 2020. This accusation has intensified diplomatic and cryptocurrency tensions between China and the United States.

The claim was made following a report by CVERC, which pinpointed what it described as a state-level hacking operation. This latest development relates to the U.S. Department of Justice’s announcement of the indictment of Chen Zhi, a Cambodian businessman linked to the Prince Group. Chen is allegedly involved in masterminding the large-scale crypto fraud associated with the mining pool hack.

Key Figures and Institutions Involved

Entities such as the CVERC, U.S. Department of Justice (DOJ), Chen Zhi, and Arkham Intelligence are central to this situation. The DOJ has been active in seizing illicitly obtained crypto assets, which in this instance, includes the bitcoins connected to Chen Zhi. Arkham Intelligence, a blockchain analytics firm, has tracked the bitcoin movement to wallets controlled by the U.S. government.

Chen Zhi, who previously operated Prince Group, oversaw the LuBian mining pool before it underwent a serious cyber attack that led to its fall. According to CVERC, Chen Zhi held ownership over the stolen bitcoins. The operation resulted in the pool losing over 90% of its assets.

Details from Official Statements

The technical report produced by the CVERC contains direct accusations against a supposed U.S.-backed hacking group. It described the bitcoin seizure as a “typical case of ‘thieves falling out’,” highlighting the suspect nature between the state-level actors. The CVERC published this report on its official channels, but it has not received coverage on Western social media platforms.

Documents released publicly by the DOJ indicate that the seizure was a legitimate action targeting the proceeds of crime. These documents argue that seizing such assets falls within the framework of legal enforcement tactics deployed against financial crime.

On-Chain Movements and Bitcoin Storage

The bulk of the bitcoins, valued at $13-15 billion, remained stationary for close to four years following the 2020 hack. Such large-scale crypto thefts are usually laundered quicker. The coins only moved in mid-2024 to wallets identified by Arkham Intelligence as U.S. government-controlled, prompting further analysis.

To date, the only asset affected is Bitcoin. There is no mention of any governance tokens or additional cryptocurrency protocols being involved according to current forensic evaluations.

Comparisons with Past U.S. Crypto Seizures

When compared to past federal seizures like the Silk Road case, this instance of bitcoin confiscation stands out. Previous cases did not incite accusations of cross-border state-level hacking, which adds a layer of complexity in this situation.

Historical hacks, such as the PlusToken incident, involved a more traditional investigative route without subsequent international diplomatic disputes. The current case could signify new strains in U.S.–China relations in the realm of cybersecurity and cryptocurrency oversight.

For additional context or updates related to cryptocurrency events, see China accuses U.S. of Bitcoin theft in major crypto hack.