Beijing, 11 November 2025 — Chinese authorities have accused the U.S. government of seizing approximately 127,000 bitcoin, worth about US$13 billion, which were originally stolen in a 2020 hack of the LuBian Mining Pool. The accusation, issued by the National Computer Virus Emergency Response Center (CVERC), alleges the hack was conducted by a “state-level hacking organisation” and that the U.S. seizure was part of that operation.
According to China’s account, the stolen coins remained dormant for nearly four years before being transferred in mid-2024, movements that CVERC attributes to the U.S. government. The Chinese agency says U.S. authorities then characterised the seizure as part of a fraud investigation of Cambodian business figure Chen Zhi, but insists the narrative masks a deeper cyber-espionage episode.
U.S. officials reject the allegation, saying the action was a lawful asset forfeiture under criminal proceedings. Washington maintains it was not involved in hacking but instead intervened to seize illicit-proceeds tied to a fraud network.
Why This Matters
- The scale: 127,000 bitcoin corresponds to about 0.65% of total bitcoin supply, raising questions about potential implications for crypto-liquidity and market sentiment.
- Geopolitical & cyber-sovereignty dimension: China’s accusation pivots crypto theft into a state-to-state cyber-dispute rather than purely a criminal matter.
- Market impact: The dispute adds a layer of risk for cryptocurrency markets, signalling that bitcoin may increasingly be viewed as a geopolitical asset, not just a financial instrument.
What to Watch
- Whether U.S. agencies publicly respond to the Chinese allegation and whether forensic trace-analysis of the 2020 hack becomes subject to international scrutiny.
- If regulatory or diplomatic escalation follows, particularly in the context of U.S.–China tensions over technology, cybersecurity and digital sovereignty.
- Crypto-market reaction: Whether traders price in supply-flow risk, liquidity constraints or heightened regulatory intervention tied to the case.
