A Chinese cybersecurity watchdog is accusing the U.S. government of involvement in a major cryptocurrency heist, raising 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) published a technical report on Sunday claiming that the US 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, president 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 attack 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 newspaper affiliated with the Chinese Communist Party’s official newspaper, the People’s Daily.
For almost four years, the stolen bitcoin remained untouched and the hack largely went unnoticed.
Then, in mid-2024, the stash was quietly transferred to new wallets. Blockchain analysis company Arkham later labeled those wallets as belonging to the US government.
CVERC’s analysis challenges the US narrative that the funds were proceeds of crime. Instead, the agency claims that the seizure may have been the final step in a long operation involving the same attackers behind the original robbery.
The United States maintains that the seizure was a legitimate police action.
CoinDesk reached out to the US Treasury and Department of Justice for comment, but had not received a response as of press time.
