Bitcoin News Today: Bitcoin theft from Chinese mining pool surges to $14.5 billion

Bitcoin valued at $14.5 billion was quietly stolen from a Chinese mining pool in 2020, according to a blockchain intelligence firm, Arkham Intelligence. The theft, first uncovered in December 2020, involved 127,426 BTC, which at the time had a value of $3.5 billion. The stolen amount has since surged in value, reaching nearly $14.5 billion as of today [1].

The mining pool at the center of the theft was named LuBian, a Chinese-based operation that rapidly gained prominence in late 2020, briefly becoming the sixth-largest mining pool on the Bitcoin network. The pool’s website claimed it was "the safest high yielding mining pool in the world." However, it vanished just over a year later in February 2021, with many assuming it had been either shut down by regulators or converted into a private pool [1].

Arkham’s analysis suggests a different narrative: the pool was effectively wiped out by a cyberattack. On December 28, 2020, more than 90% of LuBian’s BTC reserves were stolen. A further $6 million in BTC and USDT was taken two days later from an active address on the Bitcoin Omni layer. According to Arkham, the breach likely exploited a vulnerability in LuBian’s private key generation algorithm, making it susceptible to brute-force attacks [1].

Despite losing the vast majority of its reserves, LuBian managed to retain 11,886 BTC, which is currently valued at $1.35 billion. This portion of the asset remains in LuBian’s possession, though no further activity has been observed from the pool since its disappearance in 2021.

Notably, the stolen Bitcoin has remained untouched on the blockchain since July 2024. In a move that suggests a rare attempt at communication, LuBian used the Bitcoin OP_RETURN field to send messages to several addresses suspected of the theft. These messages, sent in two separate transactions, urged the hacker to contact them to discuss the return of the assets and even hinted at a reward for cooperation. An email address was included, but it is unknown whether the hacker ever responded [1].

This revelation highlights the growing capabilities of blockchain intelligence firms to uncover long-buried incidents in the crypto space. The fact that the theft was not disclosed publicly at the time raises concerns about transparency and oversight in early-stage mining operations. At the time of the attack, many parts of the industry had not yet developed the robust security protocols that are now standard.

The stolen assets’ value has grown exponentially due to Bitcoin’s price appreciation, turning what was already a massive theft into one of the largest in crypto history. The case underscores the long-term risks of cybersecurity vulnerabilities, where the consequences can manifest years after the initial breach. As the industry continues to mature, the need for real-time monitoring, transparency, and accountability becomes increasingly critical [1].

Source:

[1] The Block. (2025). 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?utm_source=rss&utm_medium=rss