China raises alarm over alleged US role in one of the largest Bitcoin hacks

China’s nationalist cyber defence bureau has made large claims astir the alleged relation of the US successful the multibillion-dollar hack of LuBian, erstwhile a large Chinese Bitcoin mining pool.

The Chinese National Computer Virus Emergency Response Center (CVERC), a state-backed cyber defence agency, connected Sunday published a method investigation study connected the 127,272 Bitcoin (BTC) stolen successful the LuBian hack.

Although the hack occurred successful December 2020, it remained mostly chartless to the nationalist until recently, with Arkham reporting it successful August arsenic the “largest ever” Bitcoin hack.

The CVERC’s investigation came weeks aft the US filed a civilian forfeiture complaint for 127,271 BTC (worth astir $14.5 billion) successful a transgression lawsuit against Prince Group laminitis Chen Zhi, who reportedly owned the 127,272 BTC held by LuBian earlier it was hacked.

US already held seized Bitcoin, China says

While formally filing to prehend the $14.5 cardinal luck successful mid-October, the US authorities had already been holding the assets successful custody, according to the indictment statement.

“Those funds are presently successful the custody of the US government,” the connection noted, adding that the ailment is the “largest forfeiture enactment successful the past of the Department of Justice.”

Source: tier10k

The CVERC highlighted that the US authorities has not disclosed successful the indictment however it obtained entree to the funds, and claimed the US had been successful power of the assets for much than a year, citing Arkham data.

According to Arkham data, an code labeled “LuBian.com Hacker” sent 120,576 BTC — astir its full holdings — to an code labeled “US Government: Chen Zhi Seized Funds” successful a azygous transaction connected July 5, 2024.

Transactions from “LuBian.com Hacker” addresses to “US Government: Chen Zhi Seized Funds” successful July 2024. Source: Arkham

The CVERC said the stolen Bitcoin connected the LuBian hacker’s addresses had remained dormant for astir 4 years pursuing the hack until the funds were “fully taken implicit by the US government” past year.

CVERC said the agelong dormancy of the stolen Bitcoin earlier the US seizure “is intelligibly inconsistent with the quality of mean hackers who are anxious to currency retired and prosecute profits.”

The CVERC study besides said Zhi and his Prince Group repeatedly sent messages to the hacker code via Bitcoin transactions of astir $23 each, pleading for the instrumentality of the stolen BTC and offering a reward, but received nary response.

The study adds a geopolitical magnitude to 1 of the astir mysterious crypto thefts successful history.

Chen Zhi/Prince Group repeatedly asked the hacker to instrumentality the stolen funds utilizing blockchain messages. Source: Blockchain.com/Arkham

Related: Balancer makes past entreaty to hacker down $100M+ exploit

According to Arkham, the batch of LuBian-derived Bitcoin holdings accounts for astatine slightest 39% of each 326.5 BTC ($34.2 billion) held successful US government-associated addresses astatine the clip of publication.

US President Donald Trump precocious declared that the US is “far up of China and everybody else” successful cryptocurrency adoption. “China is getting into it successful a precise large mode close now,” he said successful an interview with CBS News’ 60 Minutes connected Nov. 2.

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