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Key Takeaways
What is China accusing the United States of?
China’s CVERC claims the US orchestrated the 2020 hack of the LuBian mining pool, stealing 127,000 Bitcoin and then seizing those coins in 2024 under the guise of legitimate law enforcement.
How Does the US Justify Seizing Bitcoin?
The U.S. Department of Justice maintains that the seizure was a lawful asset forfeiture related to money laundering investigations.
Beijing claims the 2020 mining pool hack was a state-sponsored operation and not legitimate law enforcement.
China accused the United States of stealing 127,000 Bitcoin worth $13 billion in what Beijing calls a state-sponsored cyber operation disguised as law enforcement.
The accusation escalates crypto tensions between the world’s two largest economies.
Chinas National Computer Virus Emergency Response Center [CVERC] released a report on Sunday, claiming that the US orchestrated the 2020 hack of the LuBian mining pool.
The agency claims that the theft used “state-level hacking tools” and that US authorities later seized the stolen coins under false pretenses.
The hack of 2020
Attackers removed more than 127,000 BTC from LuBian’s hot wallet in December 2020. The coins remained dormant for almost four years before being transferred to new addresses in mid-2024.
The US Department of Justice formally announced the seizure on October 14, 2025.
US authorities linked the Bitcoin to Chen Zhi, chairman of Cambodia’s Prince Group, who is being indicted by the US for allegedly running a massive crypto fraud scheme.
CVRC disputes this story. The Chinese agency claims that the timing and patterns of movement point to US involvement from the start.
Beijing says the “delayed and silent” transfers are consistent with government operations rather than typical criminal behavior.
Competing stories
The US claims the seizure followed standard legal procedures related to money laundering investigations.
The Justice Department views the action as legitimate asset forfeiture related to Chen Zhi’s alleged fraud network.
The CVERC report calls the situation an “internal confrontation between thieves.” The agency estimates that only a portion of the seized funds come from illicit sources, with approximately 17,800 BTC mined independently and 2,300 BTC earned through legitimate pool payments.
Geopolitical flashpoint
The dispute transforms Bitcoin from digital gold into a diplomatic weapon. The 127,000 BTC represents approximately 0.65 percent of the circulating supply. This is a significant amount that could impact markets if tensions escalate.
At Bitcoin’s October 2025 peak of $126,000, the seized coins were worth more than $16 billion. Current valuations put the holdings at approximately $13.3 billion.
The accusation comes amid broader tensions between the US and China over technology and cybersecurity.
For crypto markets, the case raises uncomfortable questions about whether decentralized assets remain neutral when superpowers clash.
The US has not provided a formal response to CVERC’s allegations. The Department of Justice continues to characterize the seizure as a lawful enforcement action against criminal proceeds.