Bitcoin News Today: LuBian Bitcoin Heist Surpasses $14.5B Amid Stolen Key Flaw

Arkham Intelligence has uncovered what may be the largest Bitcoin theft in history, involving 127,426 BTC stolen from the Chinese mining pool LuBian in December 2020. At the time of the theft, the value of the stolen assets was approximately $3.5 billion. Due to the significant increase in Bitcoin’s price, the stolen amount is now valued at $14.5 billion as of 2025 [1].

The breach occurred through a brute-force attack enabled by a critical flaw in LuBian’s private key generation algorithm [2]. This vulnerability allowed the attacker to guess the correct combination of keys and gain access to the mining pool’s wallet. The theft happened in two stages: on December 28, 2020, over 90% of LuBian’s Bitcoin reserves were drained. A further $6 million in BTC and USDT was taken the next day from a wallet on Bitcoin’s Omni Layer [1].

In an effort to recover the stolen funds, LuBian attempted to communicate with the hacker by embedding 1.4 BTC into 1,516 transactions, effectively sending a message through blockchain data. The company also issued a public appeal and offered a reward for the return of the assets. However, the hacker has not responded and has remained silent since the theft [1].

Despite the magnitude of the breach, the stolen Bitcoin has not been moved from the wallet. The last known activity was a small test transaction sent by Binance in September 2024, indicating that the wallet is being monitored. As of July 2024, the hacker has consolidated the assets into a single wallet, but no significant movement or laundering has been detected [1].

The stolen assets now represent the 13th-largest Bitcoin wallet in the world, surpassing other major breaches such as the 2014 Mt. Gox incident [1]. The LuBian case underscores the vulnerabilities in key management and security protocols within the cryptocurrency industry. It serves as a wake-up call for both custodians and users to adopt stronger cybersecurity measures, including secure private key generation, multi-layered security systems, and regular audits [2].

The revelation has sparked renewed scrutiny of custodial operations and security practices across the industry. With the value of digital assets continuing to rise, the risks associated with poor security have also increased. The LuBian incident highlights the importance of transparency and the need for robust protocols to protect large-scale crypto holdings [2].

As the stolen funds remain untouched and the perpetrator unidentified, the case continues to serve as a cautionary tale for the crypto community. The lack of movement in the wallet suggests that the attacker may be waiting for a more strategic moment to act, or may have no intention of liquidating the stolen assets [1].

Source:

[1] Arkham Uncovers $3.5B Bitcoin Heist: The Largest Crypto Theft In History? (https://bitcoinist.com/arkham-uncovers-bitcoin-heist-largest-theft-history/)

[2] Arkham Reveals $14.5B Bitcoin Theft via LuBian's Key Flaw (https://www.ainvest.com/news/bitcoin-news-today-arkham-reveals-14-5b-bitcoin-theft-lubian-key-flaw-2508/)