Bitcoin News Today: $3.5 Billion Bitcoin Heist Traced to LuBian Mining Pool in 2020

Arkham Intelligence has revealed a previously undisclosed $3.5 billion Bitcoin heist linked to the LuBian mining pool in China, which occurred in 2020. The breach, involving the theft of 127,426 BTC, was identified through on-chain analysis and has now been made public. The stolen funds were transferred to several "recovery wallets," where the majority remain inactive. Despite the massive scale of the theft, no known group or individual has been officially linked to the attack, and the leadership of LuBian has not issued public comments[1].

The theft represents the largest single instance of Bitcoin-related losses in history, surpassing major incidents like the 2014 Mt. Gox collapse and the 2025 Bybit breach in terms of the value involved. According to Arkham’s analysis, the movement of the stolen funds had a notable impact on LuBian’s liquidity, signaling broader implications for mining pool security and Bitcoin market dynamics. The lack of immediate regulatory or institutional response has raised questions about oversight in the rapidly evolving crypto landscape[1].

Industry experts have pointed to the incident as a catalyst for increased scrutiny of security protocols within the mining sector. Enhanced monitoring and compliance systems are now seen as necessary to prevent similar breaches in the future. Kanalcoin analysts have noted a trend toward more robust anti-theft measures, with the event prompting a reevaluation of how mining operations safeguard their digital assets[1].

The incident highlights the vulnerabilities present in even well-established players in the Bitcoin ecosystem. While blockchain technology is often praised for its transparency and security, this case demonstrates the potential for large-scale theft when key infrastructure is compromised. The lack of attribution and the absence of public statements from LuBian underscore the need for greater accountability and response mechanisms in the event of major breaches[1].

Arkham’s findings emphasize the importance of on-chain analysis in tracking illicit movements of digital assets. The report notes that while blockchain provides a transparent ledger, it does not inherently prevent theft or identify the perpetrators. The company's platform played a crucial role in tracing the stolen Bitcoin flows, but it did not make any claims about the identity of the attackers[1].

As the crypto market continues to mature, this incident may serve as a turning point in how security and risk management are approached across the industry. The stolen Bitcoin, while largely inactive, remains a potent reminder of the risks associated with digital asset storage and the need for continuous innovation in safeguarding protocols[1].

Source: [1] Arkham Analysis Reveals $3.5 Billion Bitcoin Heist (https://coinmarketcap.com/community/articles/688eab25f755b03fefb012d8/)