Chinese And US Governments Fighting Over Bitcoin? Here’s What We Know

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A caller technical report from China’s National Computer Virus Emergency Response Center (CVERC) has revealed shocking details astir 1 of the largest Bitcoin hacks successful history, which points to a hidden powerfulness conflict betwixt China and the United States implicit $15 cardinal successful Bitcoin. The stolen Bitcoin stayed untouched for 4 years, which blockchain experts accidental is antithetic for emblematic hackers. Now, some China and the US are pointing fingers, with immoderate analysts suggesting the US authorities may person secretly seized the coins.

China’s 2020 Bitcoin Hack Raises Questions About US Government Involvement

LuBian was a fast-growing Bitcoin mining pool launched successful 2020, chiefly operating successful China and Iran. In precocious December 2020, hackers attacked its strategy and stole implicit 90% of its Bitcoin, matching astir precisely the 127,271 BTC aboriginal claimed by the US Department of Justice (DOJ).

Soon aft the theft, Chen Zhi, president of Prince Group successful Cambodia, and his squad sent implicit 1,500 messages connected the Bitcoin blockchain, embedded successful tiny transactions, begging the hackers to instrumentality the funds and offering a ransom. The hackers ne'er responded. The stolen Bitcoin remained successful a azygous wallet from 2020 until mid-2024, an antithetic move, arsenic astir hackers determination stolen coins quickly. Blockchain experts accidental this behaviour suggests a cautiously planned state-level operation.

Who Really Controls The 127,000 BTC?

In June 2024, the stolen Bitcoin yet moved again to caller addresses, which well-known blockchain-tracking companies, including Elliptic and Arkham Intelligence, person identified arsenic being nether US authorities control. Then, connected October 14, 2025, the US DOJ announced that it had seized 127,000 Bitcoins from Chen Zhi and charged him with fiscal crimes.

Chinese experts, however, assertion these are the aforesaid coins stolen from LuBian successful 2020, suggesting that the US authorities whitethorn person controlled them years earlier. According to the CVERC report, the antithetic behaviour of the stolen coins remaining dormant for 4 years suggests that imaginable state-level operations are present intersecting with the DOJ’s ineligible lawsuit against Chen.

Blockchain investigation reveals that each 25 Bitcoin wallet addresses mentioned successful the US DOJ indictment correspond to the addresses progressive successful the 2020 hack. Only a tiny fraction of the stolen Bitcoin was ever moved earlier 2024, highlighting the unusual, state-level quality of the operation.

The study further suggests that the US whitethorn person acquired the stolen funds agelong earlier announcing the seizure, perchance adjacent participating successful oregon benefiting from the archetypal hack. Chinese analysts reason that this appears to be a “state-level double-cross”, wherever 1 authorities utilized hacking tools to prehend digital assets nether the screen of instrumentality enforcement.

Meanwhile, the US DOJ has not explained however it obtained Chen Zhi’s backstage wallet keys oregon wherefore those wallets precisely lucifer the stolen LuBian funds, leaving the question of close power unresolved.