China’s cybersecurity authorities have accused the US of being responsible for the theft of approximately $13 billion worth of Bitcoin. The theft occurred in December 2020 when hackers targeted the LuBian Bitcoin mining pool, resulting in the loss of 127,272 Bitcoin tokens, one of the largest crypto heists in history, as reported by Bloomberg. China’s National Computer Virus Emergency Response Center suggested that the attack was carried out by US-backed hackers, citing the slow and deliberate movement of the stolen Bitcoin as evidence of a state-sponsored operation rather than typical criminal activity.
A recent report posits that the stolen Bitcoin from LuBian is linked to tokens later seized by the US government. The Bloomberg article states that these tokens are connected to Chen Zhi, head of Cambodia’s Prince Group, who was charged in October with wire fraud and money laundering. The US authorities have, however, declined to specify when or how they confiscated the Bitcoin. The report further claims that American hackers may have stolen around 127,000 Bitcoins from Chen Zhi as early as 2020, describing it as a possible ‘black eats black’ operation involving a state-level hacking organisation.
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Prosecutors handling Chen Zhi’s case have refrained from explaining how they obtained control over the seized coins, despite a civil lawsuit filed by the Justice Department aimed at their seizure. Chen’s lawyer, Matthew L. Schwartz, has requested additional time from a US court to trace the stolen Bitcoin. He argues that the government’s accusations are based on incorrect assumptions. Bloomberg reports that Chen is not in US custody, and his legal team is working with cryptocurrency experts to track the seized Bitcoin, which was originally stolen in 2020. The case highlights ongoing tensions and complex international issues surrounding large-scale cyber theft, state-sponsored hacking, and cryptocurrency law enforcement.
