Bitcoin News Today: LuBian Hackers Move $1B BTC as DOJ Closes In on $14B Stash

A long-dormant Bitcoin wallet linked to the 2020 hack of Chinese mining pool LuBian has moved 9,757 BTC-worth approximately $1.1 billion-after three years of inactivity, according to on-chain analytics firms Peckshield and Lookonchain [1]. The transfer, directed to two new addresses, has sparked speculation about potential liquidation efforts or security measures, even as the U.S. government seeks to forfeit the remaining 127,271 BTC stolen in the original heist, valued at $14.4 billion [1].

The LuBian breach, uncovered in August 2025 by blockchain intelligence firm Arkham, revealed one of the largest cryptocurrency thefts in history. In December 2020, attackers exploited a weak private-key generation algorithm to siphon 127,426 BTC-worth $3.5 billion at the time-from the mining pool, which had briefly controlled 6% of Bitcoin's network hash rate [2]. LuBian's sudden disappearance from public operations in early 2021 had initially been attributed to China's crypto crackdown, but the hack's concealment highlighted systemic gaps in transparency and security protocols [3].

The recent wallet activity follows a July 2024 consolidation of stolen funds, with the hacker's stash now ranking as the 13th-largest Bitcoin holding globally, surpassing infamy of the Mt. Gox theft [4]. Despite embedding 1,516 on-chain appeals via OP_RETURN messages-spending 1.4 BTC in a futile attempt to recover funds-the attacker has remained anonymous, leaving the stolen coins largely untouched until recently [5].

The U.S. Department of Justice (DOJ) has intensified efforts to seize illicit crypto assets, announcing on October 14 the confiscation of 127,271 BTC tied to Prince Group, a Cambodian conglomerate accused of operating forced-labor scam compounds. The DOJ alleges these funds originated from LuBian's 2020 theft, which Prince Group allegedly repurposed to launder proceeds from global "pig butchering" scams [6]. The seizure, valued at $15 billion, marks the largest cryptocurrency forfeiture in history and bolsters the U.S. government's strategic Bitcoin reserve to over 325,283 BTC ($37 billion) [7].

Industry experts warn the LuBian case underscores critical vulnerabilities in institutional crypto custody. "Poor key management and lack of breach disclosures allowed this theft to remain hidden for years," said a Blockscope analysis, emphasizing the need for real-time monitoring, cross-chain tracing, and standardized reporting frameworks [2]. The incident also raises questions about the feasibility of recovering stolen assets, as the hacker's prolonged dormancy suggests sophisticated evasion tactics.

With Bitcoin's price nearing all-time highs, the stakes for securing digital assets have never been greater. The DOJ's aggressive forfeiture actions and advancements in blockchain forensics signal a new era of regulatory scrutiny, but the LuBian saga serves as a stark reminder: even the most opaque corners of the crypto ecosystem are not immune to eventual exposure.