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Important points
What is China accusing the US of doing?
China’s CVERC claims that the United States orchestrated a hack into the LuBian mining pool in 2020, stealing 127,000 Bitcoins, and then seizing these 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 an anti-money laundering investigation.
The Chinese government claims that the 2020 hack of mining pools was a state-sponsored operation rather than legitimate law enforcement.
China has accused the United States of stealing 127,000 bitcoins worth $13 billion in what Beijing calls a state-sponsored cyber operation disguised as law enforcement.
The allegations escalate tensions over virtual currencies between the world’s two largest economies.
chinese National Computer Virus Emergency Response Center [CVERC] A report has been published It was claimed that the US orchestrated the hacking of the LuBian mining pool in 2020.
The agency claims the theft involved “state-level hacking” tools and that U.S. authorities later seized the stolen coins under false pretenses.
Hacks of 2020
Attackers leaked over 127,000 BTC from LuBian’s hot wallet in December 2020. The coin remained dormant for nearly four years before being transferred to a new address in mid-2024.
The U.S. Department of Justice officially announced the seizure on October 14, 2025.
U.S. authorities linked the bitcoin to Cambodian Prince Group Chairman Cheng Gyi, who is indicted in the U.S. on suspicion of running a large-scale cryptocurrency fraud scheme.
CVERC disputes this theory. Chinese officials say the timing and pattern of movements suggested U.S. involvement from the beginning.
The Chinese government insists that the “delayed and silent” transfers are not typical criminal activity and are consistent with government activity.
competing stories
The United States maintains that the seizure was made in accordance with standard legal procedures related to anti-money laundering investigations.
The Justice Department is framing the case as a legitimate asset forfeiture related to Chen Zhi’s fraud network.
The CVERC report calls the situation an “infighting between thieves.” The agency estimates that only a portion of the seized funds came from illegal sources, with approximately 17,800 BTC mined independently and 2,300 BTC acquired through legitimate pool payments.
geopolitical flashpoint
This conflict transformed Bitcoin from digital gold to a diplomatic weapon. 127,000 BTC represents approximately 0.65 percent of the circulating supply. This is a significant amount that could impact the market if tensions escalate.
At Bitcoin’s October 2025 peak of $126,000, the value of the seized coins was over $16 billion. At its current valuation, its assets are approximately $13.3 billion.
The accusations come amid growing tensions between the United States and China over technology and cybersecurity.
The incident raises uncomfortable questions for the cryptocurrency market about whether decentralized assets will remain neutral when superpowers collide.
The United States has not issued a formal response to CVERC’s claims. The Department of Justice continues to characterize this seizure as a law enforcement action against the proceeds of crime.