A Chinese cybersecurity watchdog is accusing the U.S. government of unlawfully confiscating billions of dollars worth of Bitcoin (BTC) that were originally hacked in 2020 from a little-known Chinese mining pool.
The U.S. government has refuted CVERC’s claims, asserting that the seizure was a legitimate law enforcement action targeting criminal proceeds.
$13 Billion Bitcoin Heist
China’s National Computer Virus Emergency Response Center (CVERC) released a technical report Sunday claiming the U.S. Department of Justice seized BTC that was originally stolen in a hack targeting the LuBian mining pool.
CVERC claims LuBian was exploited on December 29,2020, losing 127,272.06 BTC, valued at $3.5 billion at the time. Due to the price appreciation of the alpha crypto since 2020, the current value of the stolen assets is estimated to be $13 billion.
The hacked coins were allegedly held by Chen Zhi’s Prince Group, chairman of Cambodia’s Prince Holding Group, who is now under U.S. indictment for allegedly orchestrating a massive pig butchering crypto scheme involving forced labor and billions of dollars in victims’ losses.
According to the report, the hack was carried out with state-of-the-art tools, indicating the work of a “state-level hacking organization,” Chinese state-owned publication the Global Times reported.
Chen’s team reportedly sent blockchain messages in 2021 and 2022 following the theft offering a ransom for the return of the funds, which remained dormant for four years before being quietly transferred to new wallets in mid-2024 — to wallets presumably controlled by U.S. law enforcement.
The China National Computer Virus Emergency Response Center challenges the U.S. assertion that the funds were criminal proceeds. Instead, the agency claims the seizure may have been the final step in a long operation involving the same attackers who pulled of the original heist.
The allegations represent an escalation in geopolitical tensions over cryptocurrency enforcement and cross-border asset seizures between the China and the United States.
