In a stunning escalation of digital-era geopolitics, China has accused the United States of stealing $14 billion worth of Bitcoin through a covert cyber operation. The allegation centers on the 2020 hack of LuBian, a major Chinese crypto mining pool, and a fugitive businessman named Chen Zhi, accused of masterminding massive online fraud networks.
The accusation, if proven true, would make it one of the largest acts of alleged state-level cryptocurrency theft in history. But behind the headlines lies a tangled web of cyber espionage, cross-border finance, and criminal deception that is reshaping how nations perceive digital assets.
What was the LuBian hack?
LuBian was one of China’s top Bitcoin mining pools, reportedly operating both in mainland China and Iran. In December 2020, it suffered a catastrophic breach: nearly 127,426 Bitcoins disappeared overnight, worth roughly $3.5 billion then and nearly $14 billion today.
Blockchain investigators say the attackers drained LuBian’s hot wallets—crypto accounts connected to the internet—by exploiting flaws in its private key management system. Some analysts believe zero-day exploits were used, suggesting an operation of significant sophistication.
The hack effectively crippled LuBian. By early 2021, the once-dominant mining pool had gone offline, leaving behind unanswered questions and one of the largest unsolved crypto thefts in history.
China’s latest claim: “A state-level theft” by the US
On November 11, 2025, China’s National Computer Virus Emergency Response Centre (CVERC) released a report accusing the US government of masterminding the LuBian hack.
According to CVERC, the operation was conducted by American intelligence agencies using tools similar to those used in Stuxnet, the US-Israeli cyberattack that disrupted Iran’s nuclear program in 2010. The report alleges that US agencies stole the Bitcoin, kept it dormant for years, and later laundered the funds through official channels.
CVERC points to a key coincidence: in 2024, the US Department of Justice (DOJ) announced it had seized 127,271 BTC—nearly the exact same amount stolen from LuBian—as part of a criminal forfeiture case linked to Cambodian businessman Chen Zhi.
To Beijing, that timing is too convenient. CVERC claims the DOJ’s seizure was an attempt to “legitimize the loot” under the guise of law enforcement.
Who is Chen Zhi, and why is he central to this case?
Chen Zhi, often described as a charismatic entrepreneur with interests across Southeast Asia, is the founder of Prince Group, a Cambodian conglomerate with holdings in real estate, finance, and technology.
US authorities accuse Chen of running a $6 billion global investment fraud through his company EZ Blockchain—a supposed crypto mining enterprise that allegedly sold nonexistent mining equipment and laundered the proceeds through shell firms and digital wallets.
In 2024, when the DOJ announced the record-breaking Bitcoin seizure, it identified the wallets as belonging to Chen’s network, not stolen funds. Chen, now a fugitive, has been charged in absentia and remains wanted by US law enforcement.
However, China’s latest allegation reframes this narrative: if CVERC’s claims are true, Chen’s wallets might have been used as fronts or conduits for a much deeper operation between intelligence agencies and illicit crypto flows.
How is the LuBian case tied to pig butchering scams?
The Chen Zhi investigation also overlaps with another dark corner of the crypto world, the pig butchering scam network.
These schemes—named after the practice of fattening victims before slaughtering them—trick users into investing in fake crypto or trading platforms. Once victims deposit funds, the scammers vanish, leaving them with nothing.
Investigators have traced many of these scams to transnational criminal networks operating out of Southeast Asia, particularly Myanmar, Cambodia, and Laos. Chen Zhi’s group allegedly promoted fraudulent mining ventures and investment apps that resembled pig butchering models.
The link, analysts believe, lies in the same wallets and infrastructure used by LuBian, which may have helped launder proceeds from these scams by blending criminal money with legitimate mining revenue. If true, the LuBian hack and global scam economy may have shared the same technical backbone.
Why does the LuBian case matter geopolitically?
The LuBian affair is more than a cybercrime story, it’s a lens into how cryptocurrencies are becoming tools of statecraft and digital warfare.
For China, the accusation reinforces its narrative that the United States weaponizes technology and finance to suppress rival powers. The alleged theft supports Beijing’s push for greater digital sovereignty and homegrown blockchain systems.
For the US, the case underscores its commitment to combating international fraud and crypto-enabled money laundering, regardless of nationality.
Yet, without independent verification, the truth remains murky. Blockchain analytics confirm that the wallets seized by the DOJ match those from the 2020 LuBian hack, but no conclusive evidence ties the breach to American intelligence operations.
This ambiguity fuels a broader concern: in the age of decentralized finance, attribution is nearly impossible, and that makes crypto both a powerful tool and a dangerous weapon in global politics.
The future of crypto wars
The LuBian saga reveals the next frontier of conflict: financial cyberwarfare through digital assets. With state actors, organized crime, and private companies all operating in the same ecosystem, the lines between economic policy, espionage, and theft are increasingly blurred.
Experts warn that such incidents could lead to new international regulations on crypto transparency, spark retaliatory cyber actions between nations, and undermine global trust in blockchain infrastructure.
The $14 billion question now is whether the LuBian case will become a diplomatic flashpoint or quietly fade amid the noise of competing cyber accusations.
TL;DR
- China accuses the US of stealing $14 billion in Bitcoin from LuBian, a Chinese mining pool hacked in 2020.
- The US says it legally seized those funds in 2024 as part of a fraud case involving fugitive businessman Chen Zhi.
- LuBian and Chen’s networks are linked to “pig butchering” crypto scams, suggesting overlapping criminal and cyber operations.
- The case highlights how cryptocurrencies are reshaping cyberwarfare, law enforcement, and global finance.
