Key Takeaways
What is China accusing the United States of doing?
China’s CVERC claims the US orchestrated the 2020 hack of the LuBian mining pool that stole 127,000 Bitcoin, then seized those coins in 2024 under the guise of legitimate law enforcement.
How does the US justify the Bitcoin seizure?
The US Department of Justice maintains the seizure was lawful asset forfeiture tied to anti-money laundering investigations.
Beijing claims 2020 mining pool hack was a state-sponsored operation, not legitimate law enforcement.
China accused the United States of stealing 127,000 Bitcoin worth $13 billion in what Beijing calls a state-sponsored cyber operation disguised as law enforcement.
The allegation escalates crypto tensions between the world’s two largest economies.
China’s National Computer Virus Emergency Response Center [CVERC] released a report on Sunday, claiming that the U.S. orchestrated the 2020 hack of the LuBian mining pool.
The agency argues the theft involved “state-level hacking” tools and that U.S. authorities later seized the stolen coins under false pretenses.
The 2020 hack
Attackers drained over 127,000 BTC from LuBian’s hot wallet in December 2020. The coins remained dormant for nearly four years before being transferred to new addresses in mid-2024.
The U.S. Department of Justice formally announced the seizure on October 14, 2025.
American authorities linked the Bitcoin to Chen Zhi, chairman of Cambodia’s Prince Group, who faces U.S. indictment for allegedly running a massive crypto fraud scheme.
CVERC disputes this narrative. The Chinese agency claims the timing and movement patterns suggest U.S. involvement from the start.
Beijing argues that the “delayed and quiet” transfers align with government operations rather than typical criminal behavior.
Competing narratives
The U.S. maintains that the seizure followed standard legal procedures tied to anti-money laundering investigations.
The Justice Department frames the action as legitimate asset forfeiture connected to Chen Zhi’s alleged fraud network.
CVERC’s report calls the situation an “internal showdown among thieves.” The agency estimates that only a portion of the seized funds originated from illegal sources, with approximately 17,800 BTC mined independently and 2,300 BTC earned through legitimate pool payments.
Geopolitical flashpoint
The dispute transforms Bitcoin from digital gold into a diplomatic weapon. The 127,000 BTC represents roughly 0.65 percent of circulating supply. This is a significant amount that could impact markets if tensions escalate.
At Bitcoin’s October 2025 peak of $126,000, the seized coins were worth over $16 billion. Current valuations place the holdings at approximately $13.3 billion.
The accusation arrives amid broader US-China tensions over technology and cybersecurity.
For crypto markets, the case raises uncomfortable questions about whether decentralized assets remain neutral when superpowers clash.
The U.S. has not issued a formal response to CVERC’s allegations. The Justice Department continues to characterize the seizure as a lawful enforcement action against criminal proceeds.
