In a recent report China has accused the government of the United States of America of one of the largest heist: the $13 Billion LuBian Bitcoin heist.
According to Bloomberg, China’s top cybersecurity watchdog has named the U.S. government as the mastermind behind one of the biggest crypto thefts in history. The LuBian Bitcoin heist siphoned off more than 120,000 Bitcoin worth a staggering $13 billion from the LuBian mining pool.
LuBian Bitcoin heist in 2020
The drama unfolded back in December 2020, when hackers struck the China-based LuBian Bitcoin mining pool, wiping out the bulk of its holdings and forcing the operation to shutter just months after its meteoric rise.
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Launched in April that year, LuBian skyrocketed to become the sixth-largest mining pool on the Bitcoin network according to Arkham Intelligence, who flagged the incident in August as a record-breaking heist.
Now, fast-forward to last week: China’s National Computer Virus Emergency Response Center issued a report, labeling the breach a “state-level hacker operation” with all the hallmarks of U.S. involvement.
As detailed in Bloomberg, the agency highlighted the “quiet and delayed movement” of the pilfered Bitcoin, a behavior they say screams government orchestration rather than run-of-the-mill cybercriminals looking for a quick payday.
But the plot thickens
The Chinese report ties the stolen loot directly to Bitcoin seized by U.S. authorities in their ongoing case against Chinese national Chen Zhi, who’s facing charges of wire fraud and money laundering.
“The U.S. government may have already used hacking techniques as early as 2020 to steal the 127,000 Bitcoin held by Chen Zhi,” the report alleges.
Chinese authorities dub it a “classic ‘black eats black’ operation orchestrated by a state-level hacking organization”, implying thieves robbing thieves under the cover of official power.
This escalating cyber blame game comes amid heightened U.S.-China tensions over tech, trade, and espionage. Neither side has commented further, but experts warn it could fuel more volatility in the already turbulent crypto markets.
If these accusations are correct, we are seeing an interesting pattern here. While tensions of warfare continue to rise around the world, the threat of cyberattacks and cyber warfare is no different. For instance North Korea’s Lazarus Group is believed to be fully aided by the North Korean government.
A pro-Israeli group also hacked Nobitex, Iran’s largest crypto currency exchange in late June this year as a retaliatory measure during the Israel-Iran conflict.
