Bitcoin News Today: LuBian mining pool hit by $14.5 billion Bitcoin theft in 2020

A major Bitcoin mining pool, LuBian, fell victim to a significant cyberattack on December 28, 2020, resulting in the theft of 127,426 BTC, now valued at approximately $14.5 billion. This event marks the largest cryptocurrency theft in history and exposed critical vulnerabilities in the security of blockchain infrastructure [3]. The stolen Bitcoin remains largely untouched in a single wallet, with the hacker currently ranking as the 13th largest BTC holder globally [1].

The breach severely impacted LuBian’s operations, causing a sharp decline in its hashrate dominance on the Bitcoin network. Previously the sixth-largest mining pool, LuBian disappeared from public operations in February 2021, with speculation ranging from government intervention to a shift to private operations. However, recent analysis by Arkham Intelligence suggests the pool was compromised by a hacker who exploited a flaw in its private key generation system [1].

The attack drained over 90% of LuBian’s reserves within a short period, with further losses of $6 million in Bitcoin and USDT recorded from active addresses linked to the pool in the days following the initial breach [2]. Despite the magnitude of the theft, no official response has been issued by LuBian’s leadership, and market transparency remains a significant concern. The lack of a public statement from industry leaders has fueled ongoing speculation about the pool’s operational status and the nature of the breach.

The prolonged inactivity of the stolen assets indicates a long-term strategy by the hacker, who appears to be holding rather than attempting to liquidate the BTC. Analysts note that any attempt to sell such a large amount of Bitcoin would require meticulous planning to avoid triggering sharp market volatility [3]. The hacker’s approach highlights both the risks and potential rewards of large-scale Bitcoin holdings, especially as the asset’s value has grown substantially since 2020.

The incident has reignited broader discussions around cryptocurrency security and the risks associated with centralized mining operations. The breach exploited a vulnerability in key generation algorithms, a critical area for blockchain security. As the industry continues to evolve, enhanced encryption methods, multi-signature wallets, and decentralized storage are expected to mitigate such risks. However, the LuBian case underscores that even with increased awareness, large-scale thefts remain a persistent threat [1].

The stolen Bitcoin, valued at $3.5 billion at the time of the attack, has appreciated nearly fourfold over the past five years, emphasizing the long-term potential of holding digital assets. The hacker’s ability to retain such a vast sum reflects the challenges of enforcing digital asset regulations and the anonymity provided by blockchain technology [3]. With no major law enforcement or regulatory action announced to date, the stolen BTC is likely to remain in the hacker’s control for the foreseeable future.

Source:

[1] title: Lubian was quietly hacked in December 2020, losing ...

url: https://0xzx.com/en/2025080308255696523.html

[2] title: Arkham uncovers $14.5 billion worth of Bitcoin theft from ...

url: https://0xzx.com/en/20250803130****6830.html

[3] title: Arkham: LuBian mining pool had over 127,000 bitcoins stolen in 2020, now worth nearly $14.5 billion

url: https://www.panewslab.com/en/articles/3313fca4-f77d-4c37-a786-8a404ef99278