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Inside China’s Claim That America Seized $13 Billion in Bitcoin

China has accused the United States of orchestrating a cyberattack to seize 127,000 bitcoin — now worth $13 billion — from a major mining pool. The U.S. denies the allegation and claims the bitcoin was legally seized as criminal proceeds.

A stunning new allegation has emerged in the global crypto and cyber-security arena: the China National Computer Virus Emergency Response Center (CVERC) has accused the United States Department of Justice (DOJ) and thereby the U.S. government of orchestrating one of the largest crypto transfers in history—approximately 127,000 bitcoin (BTC), currently valued at around $13 billion.
This isn’t just another hack: it’s a claim of state-level hacking, diplomatic tension, and geopolitical implications. The situation raises questions about how bitcoin’s neutrality and decentralised nature hold up when superpowers get involved.

Table of Contents

2. What’s Being Claimed – The Chinese Narrative

According to China’s cybersecurity agency:

  • In December 2020, the mining pool LuBian Bitcoin Mining Pool (also spelled “Lu Bian”) was allegedly hacked, losing around 127,272 BTC.

  • The CVERC (or similar Chinese entity) says the theft bears the hallmark of a state-level hacking operation rather than ordinary cybercrime: e.g., the funds remained dormant for years and then moved quietly, which China argues is not typical of criminal hacks seeking quick cash-out.

  • Further, the Chinese narrative contends that those stolen funds were later relocated into addresses controlled by the U.S. government, thus constituting not just theft but what China calls an orchestrated asset seizure by the U.S.

  • In short: China accuses the U.S. of orchestrating the initial hack, then seizing the proceeds under the guise of law enforcement.

3. The U.S. Perspective – The Official Response

From the U.S. side:

  • The DOJ has stated that the seized bitcoin was tied to criminal activity — specifically, an alleged fraud and money-laundering scheme centered around Chen Zhi, chairman of Prince Group (in Cambodia).

  • The U.S. frames the action as asset forfeiture in a law-enforcement context, not a state-hack of China’s mining pool.

  • The DOJ has not publicly confirmed all the technical linkages claimed by China — and has denied that this was a U.S.-engineered hack.

4. Key Facts & Timeline

Date

Event

December 2020

Alleged hack of LuBian mining pool, 127,272 BTC stolen, per Chinese claim. 

Mid-2024

Movement of the stolen coins reportedly begins after several years of dormancy, according to Chinese report. 

October 2025

U.S. DOJ files civil forfeiture action seizing the BTC tied to Chen Zhi’s case. 

November 2025

China publicly accuses U.S. of orchestrating the hack and seizure. 

Additional notes:

  • The estimated $13 billion value is based on current or recent bitcoin prices applied to 127,000+ BTC.

  • The Chinese statement emphasises the “quiet and delayed movement” of funds as evidence of state actor involvement.

5. Why This Matters – Crypto, Geopolitics & Risk

a) Implications for Bitcoin & crypto trust

If a superpower is alleged to have hacked or seized billions in bitcoin, this challenges the notion of Bitcoin (Bitcoin) as impervious to state influence or control. It raises questions: Who really controls large pools of crypto? If governments can intervene covertly, that affects investor confidence.

b) Geopolitical flashpoint

The dispute adds yet another front to the increasingly fraught relationship between the U.S. and China — in this case, over digital assets and cyber-operations. It reflects how crypto is no longer just a financial instrument, but a tool and battleground in international strategy.

  • Legal: The line between “hack” and “law-enforcement seizure” gets blurred.

  • Regulatory: If governments can claim control over large crypto transfers, crypto regulation globally may tighten.

  • Investors: Institutions with exposure to bitcoin, crypto mining, or related stocks may face greater scrutiny or perceived risk.

6. Areas of Uncertainty & Skepticism

  • Attribution: China’s claim that the U.S. engineered the hack rests on alleged “state-level” patterns, but external verification is limited. Many blockchain analysts caution that dormant wallets or slow transfers can have other explanations.

  • Linkage to Chen Zhi / Prince Group & LuBian: The U.S. says the seized funds relate to Chen Zhi’s alleged criminal network; China claims the original theft was from LuBian and points to linkages. But a full public chain of custody with incontrovertible evidence is lacking.

  • Motive & benefit: If the U.S. did orchestrate a hack, what would the motive be, and what would be the benefit? Conversely, if this was a normal forfeiture, why was the transfer so quiet and delayed (as China claims)?

  • Market impact: While $13 billion is a large number, relative to the entire crypto market it’s still a portion. How much this changes market behaviour or regulation remains to be seen.

7. What to Watch Going Forward

  • Blockchain on-chain analytics: Researchers will be watching wallet addresses, movement of large holdings, and any tags linking to government control or forensic attribution.

  • Official statements and legal filings: Will the U.S. provide more transparency about how the funds were obtained? Will China release more technical evidence?

  • Crypto market reaction: Might this story trigger increased volatility in bitcoin or have knock-on effects for crypto equities or mining firms?

  • Regulation and global policy: Other countries may react, seek to protect their nationals or assets, and we may see policy changes around cross-border crypto controls.

Conclusion

The claim by China that the U.S. seized $13 billion in bitcoin via a state-orchestrated hack is bold, far-reaching and loaded with geopolitical significance. Whether the facts ultimately bear out China’s narrative or not, the event highlights a pivotal shift: cryptocurrencies are no longer just an alternative financial asset — they have become contested space between nations.

For anyone invested in crypto, following crypto-adjacent stocks, or tracking regulatory risk, this case serves as an early-warning: the decentralised promise of bitcoin may still face centralised power plays. In a world where states can move with stealth and millions of bitcoin change hands quietly, the old rules of finance, technology and geopolitics are colliding.

FAQs

What exactly is China accusing the U.S. of?

China claims that the United States government — specifically U.S. law enforcement — orchestrated a state-level cyberattack to steal approximately 127,000 bitcoin from a Chinese mining pool in 2020, now worth about $13 billion.

Did the U.S. admit to hacking the bitcoin?

No. The U.S. Department of Justice denies China’s claims. The U.S. says the bitcoin was legally seized because it was tied to criminal activity — allegedly involving businessman Chen Zhi and Prince Group — not hacked from China.

Why is the incident controversial?

The two nations present opposing narratives:

  • China: The U.S. hacked a mining pool and stole bitcoin.

  • U.S.: The funds were criminal proceeds and were seized legally.

This conflict raises questions about cyber sovereignty, international law, and the future of asset seizures in crypto.

Where did the alleged bitcoin hack originally occur?

According to China, the target was the LuBian (Lubian) bitcoin mining pool — once one of the world’s largest mining operations.

How much bitcoin is involved in the controversy?

Approximately 127,272 BTC, valued at nearly $13 billion today, depending on bitcoin’s price at time of valuation.

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