Bitcoin News Today: Arkham Unveils $14.5 Billion LuBian Bitcoin Heist via OP_RETURN Traces

Arkham Intelligence has revealed a massive $3.5 billion Bitcoin heist at the LuBian mining pool in 2020, marking it as the largest unreported cryptocurrency theft in history [1]. The breach went undetected for years until the firm uncovered it through blockchain analysis and OP_RETURN messages embedded in 1,516 transactions sent to hacker-controlled wallets. These messages played a crucial role in mapping the stolen Bitcoin’s flow and confirming the scale of the breach [1].

On December 28, 2020, hackers exploited a vulnerability in LuBian’s private key generation algorithm, enabling a brute-force attack that resulted in the theft of 127,426 BTC [1]. At the time, the stolen funds were valued at $3.5 billion, and with Bitcoin’s price appreciation, they are now worth approximately $14.5 billion. The mining pool, which was the sixth-largest BTC miner at the time, did not disclose the breach, leaving the vulnerability unnoticed until Arkham Intelligence brought it to light [1].

This discovery redefines the scale of previous major crypto heists. Previously, the largest known breach was the February 2025 ByBit exchange hack, which resulted in a $1.5 billion loss due to malware on a SafeWallet developer’s machine [1]. The LuBian hack, however, was far larger in both Bitcoin volume and value, underscoring the critical role of cryptographic security in the crypto ecosystem.

Other notable incidents include a $330 million Bitcoin theft in April 2025 via a social engineering attack on an elderly victim, with funds laundered across 300 wallets [1]. These cases highlight the diversity of attack vectors and the urgent need for robust cybersecurity measures, particularly in private key management and multi-signature wallet usage.

The LuBian incident serves as a stark reminder of the consequences of weak cryptographic practices. Experts emphasize that using strong, unpredictable key generation algorithms is essential to prevent brute-force attacks. Additionally, blockchain transparency—demonstrated by LuBian’s attempt to trace the stolen funds through OP_RETURN messages—can aid in forensic investigations [1].

To protect against similar attacks, crypto users are advised to adopt hardware wallets and multi-signature systems. Regular security audits and proactive risk mitigation are also critical, especially as the threat landscape continues to evolve [1].

The LuBian hack has gone unreported for years because neither the mining pool nor the hackers disclosed the breach. It was only through advanced blockchain analysis that Arkham Intelligence was able to reveal the incident [1]. This case underscores the importance of transparency and continuous monitoring in the crypto space.

Source: [1] Arkham Intelligence Suggests LuBian Bitcoin Hack May Be Largest Crypto Heist Unreported for Years (https://en.coinotag.com/arkham-intelligence-suggests-lubian-bitcoin-hack-may-be-largest-crypto-heist-unreported-for-years/)