China Accuses U.S. of Seizing 127,000 BTC Worth $13+ Billion from 2020 Mining Pool Hack

Beijing China’s cybersecurity agency has formally accused the U.S. government of seizing approximately 127,000 bitcoins (BTC) currently valued at around $13 billion to $15 billion that were originally stolen in a December 2020 hack of China-based mining pool LuBian Mining Pool.

The accusations heighten tensions between the world’s two largest economies and raise complex questions about crypto-jurisdiction, asset tracing and government seizure practice. 127k BTC seized by U.S. from Chinese mining pool Bitcoin hack China reaction 

According to a technical report by China’s National Computer Virus Emergency Response Center (CVERC), the hack resulted in the theft of 127,272.06953176 BTC from LuBian on December 29, 2020. The same amount appears in a U.S. Department of Justice (DOJ) indictment announced on October 14, 2025, in which U.S. authorities said they had seized roughly 127,000 BTC tied to Cambodian-based business group Prince Group and its chairman Chen Zhi. 

What China is Claiming

CVERC says the U.S. confiscation was not simply an enforcement of stolen criminal-proceeds, but part of a “state-level hacking organisation-led” operation that first compromised LuBian. The report states that the stolen coins remained dormant for nearly four years before moving in June 2024 to wallets now linked to U.S. authorities. 

China’s narrative is two-fold:

• The 2020 hack drained LuBian of over 90% of its holdings via a vulnerability in its private-key generation. 

• The subsequent U.S. seizure of the same coins based on blockchain-analysis links is portrayed by China as destabilising and unilaterally executed, constituting “theft” rather than lawful forfeiture. 

U.S. Government Response & Legal View

The U.S. DOJ maintains the coins were lawfully seized in a criminal case against Chen Zhi and the Prince Group, which it alleges operated large-scale fraud and money-laundering networks. Analysts say the U.S. action constitutes the largest bitcoin forfeiture ever recorded greater than $15 billion at today’s values. 

Yet what remains unclear: how the U.S. obtained control of the private keys, or whether the initial hack and the U.S. seizure form part of one continuous operation or two distinct events. Several on-chain tracking firms say the dormant BTC moved in June 2024 into addresses flagged as under U.S.-government control. 

Why This Matters for Crypto & International Relations

• Precedent for government crypto custody. If a government can seize coins originally stolen in a cross-border hack, it raises questions about chain-of-custody, private-key control and legal standard.
  
  

• Implications for mining-pool security. The LuBian attack exploited a pseudo-random number generator vulnerability; mining operations worldwide may need to reassess key generation and wallet control practices. 
  
  

• Geopolitical fallout. China’s official challenge of the U.S. action may factor into ongoing trade, technology and crypto-regulation discussions between the two nations.
  
  

• Investor caution. Crypto-holders may take this as a signal that even non-exchange, non-custodial assets can be subject to seizure or cross-jurisdictional dispute impacting perceived risk.

What’s the Timeline?

• Dec 29, 2020: LuBian mining pool reportedly suffers a massive hack, losing ~127,272 BTC. 
  
  

• 2021–2023: The stolen coins remain dormant, while LuBian and its operators publicly plead for return of funds. 
  
  

• June–July 2024: Dormant coins transfer to new wallet addresses flagged by tracking services as U.S.-government-controlled. 
  
  

• Oct 14, 2025: U.S. DOJ issues charges and announces forfeiture of ~127,000 BTC linked to Chen Zhi and Prince Group. 
  
  

• Nov 2025: China publicly accuses U.S. of asset seizure, publishing its own technical report. 

Next-Steps to Watch

• Will U.S. authorities disclose how they obtained the private keys or legal basis for control of the seized coins?
  
  

• Will China take diplomatic or regulatory action (e.g., sanctions, asset lawsuits) in retaliation for the alleged “theft”?
  
  

• Will mining-pool operators globally tighten wallet security and key-generation standards as a result of this case?
  
  

• Will crypto investors re-evaluate risk of sovereign seizure, especially in cross-jurisdictional hacks or mining operations?

FAQs

Q1: What is the central accusation from China?
A1: China claims that roughly 127,000 BTC stolen in a 2020 hack of the LuBian mining pool was seized by the U.S. government in what China calls a wrongful appropriation rather than a legitimate law-enforcement action.

Q2: How do the numbers align?
A2: The amount stolen from LuBian is cited as 127,272.06953176 BTC. The U.S. DOJ seizure is described as 127,000–127,271 BTC in its indictment, matching the stolen volume. 

Q3: Are the coins now worth $13 billion?
A3: Yes, at today’s bitcoin price, 127,000 BTC is valued between $13 billion and $15 billion depending on spot rate.

Q4: Did the U.S. government clarify how it secured the bitcoins?
A4: No clear public disclosure has been made about how the U.S. government obtained the private keys or wallet control, which is part of the controversy.

Q5: What does this mean for crypto security and mining operations?
A5: It underscores the importance of secure key-generation, cold-storage practices and jurisdictional risk. Mining pools and asset holders may face rising scrutiny and risk of cross-border enforcement.