A Chinese cybersecurity watchdog is accusing the U.S. government of complicity in a major cryptocurrency theft, escalating tensions over a years-long mystery involving 127,000 stolen bitcoins, now worth about $13 billion.
China’s National Computer Virus Emergency Response Center (CVERC) released a technical report on Sunday claiming that the US Department of Justice seized BTC 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 is now under US indictment for allegedly running a large-scale crypto fraud scheme.
The report lays out a timeline that suggests the hack was carried out with advanced tools, suggesting the work of a “state-level hacking organization.” This is according to the Global Times, a Chinese state-owned newspaper affiliated with the Chinese Communist Party’s official newspaper, the People’s Daily.
For nearly four years, the stolen bitcoin remained untouched and the hack went largely unnoticed.
Then, in mid-2024, the caches were quietly transferred to new wallets. Blockchain analytics firm Arkham later labeled these wallets as belonging to the US government.
CVERC’s analysis challenges the American narrative that the funds were criminal proceeds. Instead, the agency claims the seizure may have been the final step in a long operation involving the same attackers behind the original theft.
The United States maintains that the seizure was a legitimate law enforcement action.
CoinDesk has reached out to the US Treasury and Justice Departments for comment, but had not heard back by press time.
