China Claims U.S. Seized Billions in Bitcoin From 2020 LuBian Hack

China’s top cyber defense agency has suggested that the United States may have played a role in the massive 2020 hack of LuBian, a now-defunct Chinese Bitcoin mining pool, calling it one of the most sophisticated and politically charged cyber incidents in crypto history.

In a report released Sunday, the Chinese National Computer Virus Emergency Response Center (CVERC) alleged that the U.S. gained control of 127,272 BTC – worth roughly $14.5 billion – stolen from LuBian. The finding comes just weeks after the U.S. Department of Justice filed a civil forfeiture complaint to formally seize those assets in a case linked to Prince Group founder Chen Zhi, who was reportedly the original owner of the Bitcoin.

U.S. Custody Before Formal Seizure

According to China’s analysis, the U.S. government was already holding the funds well before filing the forfeiture claim in October 2025. CVERC cited blockchain data from Arkham Intelligence, which showed that nearly 120,576 BTC was transferred from an address marked “LuBian.com Hacker” to one labeled “U.S. Government: Chen Zhi Seized Funds” on July 5, 2024 – over a year earlier.

The agency noted that the stolen Bitcoin had remained untouched for nearly four years, claiming such long dormancy was “inconsistent with the behavior of typical hackers” seeking profit. Instead, CVERC argued, it suggested a “coordinated operation” more typical of a state-linked actor.

Blockchain Pleas Ignored

The report also revealed that Chen Zhi and Prince Group sent multiple small Bitcoin transactions – each worth around $23 – to the hacker’s address over several years, embedding messages pleading for the return of the stolen funds and offering a reward. None of the messages were ever answered.

CVERC’s claims add a geopolitical twist to what was already considered the largest Bitcoin theft ever recorded. The case now sits at the intersection of cybercrime, international law, and global crypto politics, as both nations continue to position themselves strategically in the digital asset arena.

Read More:

Political Undercurrents

At the time of the report, the LuBian-linked Bitcoin represents roughly 39% of all BTC held in wallets associated with the U.S. government, according to Arkham.

The controversy also comes amid growing rhetoric from U.S. President Donald Trump, who recently claimed the U.S. was “far ahead of China” in crypto adoption, while acknowledging that Beijing is now “getting into it in a very big way.”

Whether CVERC’s claims hold weight remains uncertain, but the episode underscores the deepening technological and financial tensions between the world’s two largest economies – now extending firmly into the blockchain realm.