A Chinese cybersecurity watchdog is accusing the U.S. government of involvement in a major cryptocurrency heist, 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 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 the Prince of Cambodia Group, who is now indicted by the United States for allegedly running a large-scale crypto fraud scheme.
The report lays out a timeline suggesting 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 newspaper affiliated with the official newspaper of the Chinese Communist Party, the People’s Daily.
For nearly four years, the stolen bitcoin remained intact and the hack went largely unnoticed.
Then, in mid-2024, the reserve was quietly transferred to new wallets. Blockchain analytics firm Arkham later identified these wallets as belonging to the US government.
CVERC’s analysis challenges the US narrative that the funds were proceeds of crime. Instead, the agency says the seizure may have been the final step in a long operation involving the same attackers behind the initial theft.
The United States maintains that the seizure was a legitimate law enforcement action.
CoinDesk reached out to the U.S. Treasury and Department of Justice for comment but had not received a response at the time of publication.
