Bitcoin News Today: First Direct U.S.-China Cyber Theft Accusation Over $13B Bitcoin Heist

China has accused the U.S. government of orchestrating a $13 billion Bitcoin theft in a cyberattack on a Chinese mining pool in 2020, escalating tensions over digital asset control between the two global powers. The Chinese National Computer Virus Emergency Response Center (CVERC) claims the U.S. Department of Justice (DOJ) seized 127,271 Bitcoin tokens—stolen from the LuBian mining pool in December 2020—as part of a "state-level hacking operation" CVERC report. The U.S. has denied the allegations, calling the seizure a lawful confiscation of criminal proceeds tied to a fraud scheme led by Cambodia's Prince Group DOJ statement.

The LuBian hack, one of the largest cryptocurrency heists in history, saw 127,426 BTC (worth $3.5 billion at the time) stolen from the mining pool's hot wallet. Blockchain analysts initially speculated the breach stemmed from a technical flaw or insider collusion CVERC report. By late 2025, the U.S. DOJ revealed it had seized the same Bitcoin, now valued at $13.3 billion, as part of an investigation into Prince Group chairman Chen Zhi, who faces U.S. charges of wire fraud and money laundering DOJ statement. The agency has refused to comment on how it obtained the assets, fueling China's accusations of state-sponsored theft.

CVERC argues the delayed movement of the stolen Bitcoin—dormant for nearly four years before being transferred to U.S.-linked wallets—indicates government-level coordination rather than typical criminal activity CVERC report. The report also disputes the DOJ's claim that all seized Bitcoin originated from criminal proceeds, asserting that approximately 17,800 BTC came from legitimate mining operations CVERC report. The U.S. has countered by emphasizing its legal authority to seize assets linked to fraud, a stance that has drawn criticism from Chinese officials who view the move as an overreach of digital sovereignty DOJ statement.

The dispute has injected volatility into the Bitcoin market. Bitcoin (BTC) traded near $105,000 as of late November 2025, down 1.8% in 24 hours, as investors grappled with geopolitical uncertainty. Analysts note that the seizure of 0.65% of Bitcoin's total supply could tighten liquidity, potentially boosting long-term valuations. However, short-term price movements remain sensitive to diplomatic developments. "This is the first time China has directly accused the U.S. of cyber theft involving cryptocurrency," said a regional cybersecurity expert, highlighting the dispute as a "serious escalation in the narrative around digital sovereignty" CVERC report.

The conflict adds to broader tensions between the two nations over cryptocurrency regulation and cyber warfare. While the U.S. continues to expand its digital asset enforcement capabilities, China has tightened domestic crypto trading restrictions and advanced its digital yuan initiatives CVERC report. The LuBian case underscores the growing role of cryptocurrencies in geopolitical rivalries, with Bitcoin increasingly treated as a strategic asset.

As the U.S. and China trade accusations, the outcome of this dispute could reshape global perceptions of Bitcoin's security and utility. If China escalates its claims through legal or diplomatic channels, it may deter institutional adoption of cryptocurrencies, analysts warn. Conversely, the U.S. seizure reinforces its position as a leader in crypto enforcement, though it risks further straining bilateral relations.

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