Bitcoin News Today: 14.5 Billion Bitcoin Heist Traced to 2020 LuBian Breach

Blockchain analytics firm Arkham Intelligence has revealed a historic cryptocurrency theft involving 127,426 Bitcoin (BTC) from Chinese mining pool LuBian in December 2020. The breach, attributed to a flawed private key generation algorithm, marks the largest single-volume BTC theft to date. The stolen assets, valued at $3.5 billion at the time, have now surpassed $14.5 billion in value due to Bitcoin’s price appreciation [1][2][3]. Despite the scale of the loss, the majority of the stolen BTC remains dormant, with no movement recorded since July 2024 [1].

The breach occurred over two days, with the initial attack draining over 90% of LuBian’s BTC reserves on December 28, 2020. A second attack the following day led to an additional $6 million in BTC and USDT being stolen from an active address on the Bitcoin Omni layer [1]. The mining pool continued to operate for several months post-breach before disappearing from public view in February 2021. While speculation existed about regulatory intervention or a pivot to a private operation, Arkham suggests the pool likely ceased operations after the theft depleted most of its reserves [1].

Notably, the perpetrator has shown no signs of moving the stolen assets, a pattern seen in other high-profile hacks such as the 2014 Mt. Gox breach. Arkham observed that LuBian attempted to contact the attacker using Bitcoin’s OP_RETURN field, offering a reward for the return of the funds, but no response has been confirmed [1]. The prolonged inactivity of the stolen coins indicates a high level of sophistication from the hacker, who has evaded detection for nearly five years [1].

Although the theft is the largest in terms of BTC volume, it does not exceed the total losses of Mt. Gox, which lost approximately 744,000 BTC, though its value was significantly lower at the time. The breach, however, underscores critical vulnerabilities in crypto security practices and serves as a cautionary tale for industry players [1]. Regulatory responses have been limited, with no new statements emerging since the incident remains isolated to LuBian’s operational practices. The case remains unresolved, with no identification of the primary perpetrator and no legal or organizational outcomes reported [1].

LuBian still holds 11,886 BTC, valued at around $1.35 billion, but has not publicly commented on the breach [1]. Arkham’s analysis highlights the importance of robust key generation and security protocols in the crypto industry. As the case gains wider attention, it may prompt broader discussions on regulatory oversight and operational best practices.

Source:

[1] Theblock – [https://www.theblock.co/post/365336/bitcoin-now-worth-14-5-billion-quietly-stolen-from-chinese-mining-pool-in-2020-arkham](https://www.theblock.co/post/365336/bitcoin-now-worth-14-5-billion-quietly-stolen-from-chinese-mining-pool-in-2020-arkham)

[2] AInvest – [https://www.ainvest.com/news/bitcoin-news-today-lubian-bitcoin-heist-surpasses-14-5-billion-biggest-crypto-theft-2508/](https://www.ainvest.com/news/bitcoin-news-today-lubian-bitcoin-heist-surpasses-14-5-billion-biggest-crypto-theft-2508/)

[3] Coindoo – [https://coindoo.com/biggest-bitcoin-hack-in-history-just-revealed-14-5-billion-gone/](https://coindoo.com/biggest-bitcoin-hack-in-history-just-revealed-14-5-billion-gone/)