China accuses US of stealing $13 billion in Bitcoin in alleged hack
China and the United States are embroiled in a contentious dispute over the alleged theft of $13 billion worth of Bitcoin. The China National Computer Virus Emergency Response Center (CVERC) has accused Washington of orchestrating a hacking operation in December 2020, resulting in the theft of 127,272 Bitcoin from LuBian, a prominent cryptocurrency miner. This stolen cryptocurrency matches the amount seized by the U.S. Department of Justice from Chen Zhi and his company, Prince Group, following allegations of wire fraud and money laundering in connection with scam call centers operating in Cambodia.
Although the hack occurred in 2020, the stolen Bitcoin lay dormant for over four years until the U.S. purportedly accessed the funds after indicting Chen Zhi in 2024. While the U.S. claims that Zhi owned the wallet containing the Bitcoin, there is no definitive connection between Zhi and LuBian. In contrast, China contends that the hack was a precision operation organized by a national hacking organization rather than a typical profit-motivated cyberattack.
The seizure of 127,272 Bitcoin marks the largest confiscation of its kind to date, surpassing the $6.7 billion seized from the “Bitcoin Queen,” who used the cryptocurrency to launder money obtained from numerous victims in China. LuBian, formerly a major player in Bitcoin mining, controlled approximately 6% of the global hashrate before mysteriously vanishing in 2021, likely linked to the 2020 hack.
Despite the ongoing trade war tensions between the two superpowers, U.S. President Donald Trump and Chinese President Xi Jinping have brokered a truce. It remains unclear why China issued the statement accusing the U.S. of theft, especially given that it is not directly involved in the legal proceedings against Zhi and Prince Group. China’s ban on cryptocurrency trading and mining further adds complexity to the situation, as LuBian once operated in countries like Iran and China.
The case highlights the intricate nature of digital assets in international criminal investigations. With fiat currency, authorities must coordinate with the host country to recover seized funds. In contrast, cryptocurrencies held in individual wallets transcend national jurisdictions, posing unique challenges for law enforcement agencies investigating such crimes. The dispute underscores the evolving landscape of cybercrime and the complexities that arise when tracing and recovering illicitly obtained digital assets.
