Bitcoin News Today: LuBian Hit by $14.5 Billion Bitcoin Heist in 2020

A previously undisclosed Bitcoin heist, now exposed by cryptocurrency intelligence platform Arkham, has been revealed as the largest in history, with 127,426 BTC stolen from a China-based mining pool known as LuBian in December 2020 [1]. The theft, valued at approximately $3.5 billion at the time, has since grown to an estimated $14.5 billion due to Bitcoin's price appreciation. The hacker remains unidentified and has not publicly acknowledged the incident, making Arkham’s on-chain analysis the first definitive documentation of the breach.

LuBian, which operated mining facilities in China and Iran, controlled roughly 6% of the global Bitcoin network in 2020. However, on December 28, 2020, the pool lost over 90% of its BTC holdings in a single attack. Over the following days, an additional $6 million in BTC and USDT was siphoned from a LuBian address associated with the Bitcoin Omni layer. On December 31, 2020, the remaining assets were transferred to what appear to be recovery wallets [1].

In response, LuBian attempted to communicate with the hacker via 1,516 OP_RETURN transactions, totaling 1.4 BTC, in a bid to reclaim the stolen funds. These efforts suggest that the breach likely stemmed from vulnerabilities in LuBian’s private key generation algorithms rather than a brute-force attack [1]. Despite the losses, LuBian retained around 11,886 BTC, which are currently valued at approximately $1.35 billion. Meanwhile, the hacker has moved the stolen 127,426 BTC in only one significant transaction—recorded as a consolidation in July 2024—suggesting a continued strategy of long-term asset control.

The LuBian breach, initially valued at $3.5 billion, now ranks as the largest cryptocurrency theft ever recorded, with the hacker holding $14.5 billion in BTC. According to Arkham’s data, the attacker is now the 13th largest Bitcoin holder in the world, surpassing even the Mt. Gox hacker [1].

The unreported nature of the breach raises serious concerns about transparency and accountability in the cryptocurrency ecosystem. Analysts point to weaknesses in smart contracts, wallet infrastructure, or third-party services as likely points of exploitation. The failure to disclose the incident publicly at the time suggests either a delayed detection or an intentional concealment to avoid reputational and regulatory fallout [1].

While Bitcoin’s decentralized nature offers inherent security, this incident highlights the vulnerabilities in peripheral systems such as exchanges, wallets, and custodial services. The scale of the theft serves as a stark reminder that even large, well-known entities are not immune to sophisticated cyberattacks [1].

Beyond the financial impact, the breach could erode public trust in cryptocurrencies and prompt regulators to enforce stricter oversight, potentially altering the market’s decentralized trajectory. In response, industry experts emphasize the need for stronger threat detection, multi-layered authentication, and real-time monitoring systems. Users are also urged to adopt secure storage practices, such as hardware wallets and cold storage [1].

The delayed disclosure of the attack also underscores the importance of timely vulnerability reporting and information sharing in the cybersecurity community. A lack of early action appears to have allowed the hacker to operate undetected for an extended period [1].

Source:

[1] BREAKING: The Largest Bitcoin Hack Ever, Unreported to the Public, Has Been Revealed – Unbelievable Figures Are Being Discussed, by Mete Demiralp, July 18, 2025. https://coinmarketcap.com/community/articles/688e6f63db321a7286e31322/