China accuses the US of orchestrating a $13 billion Bitcoin hack

China has accused the United States government of being behind the theft of approximately $13 billion worth of Bitcoin, marking another instance where China attributes significant cyber breaches to the US. The incident, involving the theft of 127,272 Bitcoin tokens from the LuBian Bitcoin mining pool in December 2020, stands out as one of the most substantial cryptocurrency heists to date.
The Chinese National Computer Virus Emergency Response Center suggests that this cyberattack likely stems from a state-level hacker group orchestrated by the US. The agency points out that the discreet and delayed movement of the stolen Bitcoin indicates a level of sophistication beyond typical criminal behavior, hinting at government involvement.
In a recent report, The Chinese National Computer Virus Emergency Response Center links the stolen Bitcoin from LuBian to tokens confiscated by the US government in connection with Chen Zhi, the chairman of Cambodian company Prince Group. The US has accused Chen of participating in a wire-fraud conspiracy and running a money-laundering operation. According to a New York indictment filed against Chen, he and his associates allegedly laundered illicit funds by funding large-scale cryptocurrency mining operations, including LuBian. The indictment also noted that addresses linked to LuBian received substantial amounts of cryptocurrency from unassociated sources.
Federal prosecutors handling Chen’s case have chosen not to disclose how or when they acquired control of the 127,271 Bitcoin. Through a related civil forfeiture complaint, the US government seized these assets in what becomes the largest forfeiture action in US history. When asked, a spokesman for Brooklyn US Attorney Joseph Nocella declined to comment on the seizure.
The report speculated that the US government potentially executed hacking techniques as early as 2020 to acquire the 127,000 Bitcoins held by Chen Zhi. Describing the operation as a classic ‘black eats black’ scenario, the report suggests a state-level hacking entity’s involvement.
China has been increasingly vocal in accusing the US of engaging in hacking operations. Earlier this year, China claimed the US exploited a Microsoft Exchange server flaw to target Chinese businesses. Last month, China accused the US of a cyber attack against its National Time Service Center, claiming to possess irrefutable evidence to support the allegation. However, China’s accusations lack the detailed forensic evidence often found in US claims against foreign cyber adversaries.
Matthew L. Schwartz, an attorney representing Chen, recently filed a letter with a US court requesting time to trace the stolen Bitcoin connected to LuBian. Schwartz referred to the government’s accusations against Chen as “seriously misguided.” Chen, who is not in US custody, continues to work with cryptocurrency experts to track the Bitcoin seized by the government over a year ago. The Chinese embassy in Washington did not respond to requests for comment on the matter.