China Accuses U.S. of State-Sponsored Bitcoin Heist: 127K BTC Seized in $13B Crypto Hack

China Accuses U.S. of State-Sponsored Bitcoin Heist

A Chinese cybersecurity watchdog has made explosive allegations against the U.S. government, claiming involvement in a major cryptocurrency heist involving 127,000 stolen bitcoin – now valued at approximately $13 billion. This accusation escalates tensions surrounding a years-long mystery that has captivated the crypto world.

China’s National Computer Virus Emergency Response Center (CVERC) released a technical report alleging that the U.S. Department of Justice seized BTC that was originally stolen in a 2020 hack targeting the LuBian mining pool. At the time, the hacked coins were linked to Chen Zhi, chairman of Cambodia’s Prince Group, who now faces U.S. indictment for allegedly operating a large-scale crypto fraud scheme.

Advanced Hacking Tools Point to State-Level Involvement

The CVERC report outlines a timeline suggesting the hack was executed using advanced tools, indicative of a "state-level hacking organization". This claim was reported by the Global Times, a Chinese state-owned newspaper affiliated with the Communist Party of China’s official People’s Daily.

For nearly four years, the stolen bitcoin remained untouched, and the hack largely went unnoticed. Then, in mid-2024, the massive stash was quietly transferred to new wallets. Blockchain analysis firm Arkham later tagged these wallets as belonging to the U.S. government.

Conflicting Narratives: Law Enforcement vs. State-Sponsored Theft

CVERC’s analysis directly challenges the U.S. narrative that the funds were criminal proceeds. Instead, the agency contends that the seizure may have been the final phase of a long operation involving the same attackers responsible for the original theft.

The U.S. maintains that the seizure was a legitimate law enforcement action. However, China views it as a provocative act that could escalate tensions between the two nations. CoinDesk has reached out to the U.S. Treasury and Department of Justice for comment but had not received a response by press time.