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A recent technical document from China’s National Computer Virus Emergency Response Center (CVERC) has disclosed startling information about one of the most significant Bitcoin breaches in history, which suggests an underlying power conflict between China and the United States over $15 billion in Bitcoin. The pilfered Bitcoin remained dormant for four years, an atypical occurrence according to blockchain specialists. Currently, both China and the US are accusing each other, with some analysts proposing that the US government might have covertly appropriated the coins.
China’s 2020 Bitcoin Breach Raises Doubts About US Government Participation
LuBian was an rapidly expanding Bitcoin mining operation established in 2020, predominantly functioning in China and Iran. In late December 2020, cybercriminals breached its network and misappropriated over 90% of its Bitcoin, closely corresponding to the 127,271 BTC later seized by the US Department of Justice (DOJ).
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Shortly after the heist, Chen Zhi, chairman of Prince Group in Cambodia, along with his team, dispatched more than 1,500 messages on the Bitcoin blockchain, embedded within small transactions, pleading with the hackers to return the funds and proposing a ransom. The hackers never replied. The taken Bitcoin remained in a single wallet from 2020 until mid-2024, an unusual behavior, as most cybercriminals quickly transfer stolen coins. Blockchain specialists observe that this conduct indicates a meticulously orchestrated state-sponsored operation.
Who Actually Holds The 127,000 BTC?
In June 2024, the pilfered Bitcoin finally changed hands, moving to new addresses, which recognized blockchain-analysis firms, including Elliptic and Arkham Intelligence, have identified as being under US government authority. Subsequently, on October 14, 2025, the US DOJ declared that it had secured 127,000 Bitcoins from Chen Zhi and charged him with financial offenses.
Chinese analysts, however, assert that these are the identical coins taken from LuBian in 2020, implying that the US government may have exerted control over them years prior. According to the CVERC report, the peculiar behavior of the stolen coins remaining quiescent for four years hints that potential state-led operations are now intertwining with the DOJ’s legal actions against Chen.
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Blockchain examination indicates that all 25 Bitcoin wallet addresses cited in the US DOJ indictment relate to the addresses involved in the 2020 breach. Only a minute portion of the taken Bitcoin was shifted before 2024, emphasizing the unusual, state-level character of the operation.
The document further suggests that the US might have acquired the misappropriated funds well in advance of announcing the seizure, potentially even taking part in or profiting from the initial breach. Chinese analysts contend that this seems to be a “state-level double-cross”, where one government leveraged hacking tools to appropriate digital assets under the guise of law enforcement.
In the meantime, the US DOJ has yet to clarify how it obtained Chen Zhi’s private wallet keys or why those wallets precisely align with the stolen LuBian assets, leaving the matter of accurate control unresolved.
Featured image created with Dall.E, chart from Tradingview.com
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