Bitcoin News Today: China Disputes US Seizure Legitimacy in $13B Crypto Clash

China has raised fresh allegations against the U.S., accusing it of playing a central role in one of the largest Bitcoin heists in history—the 2020 LuBian mining pool hack. The dispute, which centers on 127,000 stolen Bitcoin (worth approximately $13 billion at current prices), has escalated tensions between the two nations as Beijing's cybersecurity watchdog questions the legitimacy of the U.S. government's seizure of the funds, Coinotag reports.

The National Computer Virus Emergency Response Center (CVERC), a state-affiliated Chinese agency, claims the U.S. Department of Justice (DOJ) took control of the stolen Bitcoin through a "state-level hacking organization" linked to the original breach, Coinotag reports. According to blockchain analytics firm Arkham, the hacked Bitcoin remained dormant for nearly four years before being transferred to wallets labeled as U.S. government-controlled in mid-2024, Coindesk reports. CVERC's report argues this timeline and activity pattern deviate from typical cybercriminal behavior, suggesting instead a coordinated, long-term operation, Blockonomi reports.

The LuBian hack, attributed to Cambodian businessman Chen Zhi and his Prince Group, was initially reported in 2020 but drew renewed attention when the DOJ filed a civil forfeiture complaint in October 2025, seeking to seize the funds as proceeds of a fraud scheme, CryptoBriefing reports. While the U.S. government maintains the seizure is a routine law enforcement action targeting criminal assets, Chinese officials allege the move is part of a broader geopolitical strategy to undermine China's influence in the cryptocurrency space, Yahoo Finance reports.

The U.S. Treasury and DOJ have not publicly commented on CVERC's claims, but their official statements emphasize the legitimacy of the seizure. "Those funds are presently in the custody of the U.S. government," the DOJ stated, calling the action the "largest forfeiture in the department's history," Coinotag reports. However, CVERC disputes this narrative, asserting the U.S. had controlled the assets for over a year prior to the formal filing and has not disclosed how it gained access, Coindesk reports.

The incident underscores growing friction between China and the U.S. over digital asset governance. While Washington has positioned itself as a leader in crypto regulation, Beijing has tightened controls on domestic mining operations and export restrictions on rare-earth materials critical to tech manufacturing, Voi reports. The LuBian dispute adds a new layer to this rivalry, with China leveraging cybersecurity concerns to challenge U.S. dominance in blockchain enforcement.

As the world's two largest economies navigate this high-stakes confrontation, the outcome could shape global norms around cross-border asset recovery and state-sponsored cyber activities. For now, the $13 billion in seized Bitcoin remains a symbolic flashpoint in an escalating battle for control over the future of digital finance.