China Alleges US Behind $13 Billion Bitcoin Hack in Global Cyber Row
BEIJING — November 12, 2025 — China’s top cybersecurity agency has accused the United States government of orchestrating the theft of $13 billion worth of Bitcoin from the LuBian Mining Pool, intensifying long-standing digital tensions between the two global powers.
The Chinese National Computer Virus Emergency Response Center (CVERC) said the incident represents a “state-level hacking operation,” marking one of the largest cryptocurrency thefts ever recorded.
China Claims Bitcoin Seizure Was State-Led Operation
According to CVERC’s report, the theft of 127,272 Bitcoin from LuBian in December 2020 showed signs of a government-coordinated cyberattack rather than typical criminal behavior. Analysts cited the methodical and delayed transfer of funds as evidence of a “state-level hacker operation” allegedly led by the U.S.
“The U.S. government may have already used hacking techniques as early as 2020 to steal the 127,000 Bitcoins held by Chen Zhi,” the report said, describing it as a “black eats black” cyber operation.
U.S. Confiscates Bitcoin Linked to Chen Zhi Investigation
The Bitcoin tokens, once held by LuBian, were later seized by the U.S. Department of Justice (DOJ) in connection with a civil forfeiture complaint filed against Chen Zhi, chairman of Cambodia’s Prince Group.
Chen and his associates were accused of running a wire fraud and money-laundering scheme, using illicit proceeds to fund large-scale crypto mining operations, including LuBian. The DOJ’s seizure of 127,271 Bitcoin marked the largest digital asset forfeiture in U.S. history.
Federal prosecutors declined to comment on how they gained control of the funds, further fueling China’s suspicions of American cyber involvement.
Recommended Article: Bitcoin Traders Brace for US Inflation Report to Guide Fed…
China Escalates Accusations of U.S. Cyber Intrusions
This latest claim follows a string of Chinese allegations against Washington over cyber espionage and digital interference. Earlier this year, Beijing accused the U.S. of exploiting flaws in Microsoft Exchange servers to target Chinese firms and institutions.
In October, China claimed to have “irrefutable evidence” that the U.S. conducted a cyberattack on its National Time Service Center, part of the country’s critical digital infrastructure.
Beijing’s statements continue to challenge the U.S.’s portrayal of China as the main global cyber aggressor. However, international analysts note that China’s allegations often lack forensic detail, unlike U.S. reports that typically include technical data and cyber attribution methods.
Legal Defense Pushes Back on U.S. Allegations
Chen Zhi’s legal team has contested the U.S. government’s claims, calling them “seriously misguided.” Attorney Matthew L. Schwartz, chairman of Boies Schiller Flexner, said Chen’s defense is working with cryptocurrency tracing experts to verify the origin of the seized Bitcoin.
“As we explained in our submission to the Court, we are working closely with cryptocurrency experts to trace the Bitcoin that the government seized over a year ago,” Schwartz said in a statement.
Chen is not in U.S. custody, and his legal representatives have requested additional time to investigate the seized assets.
Experts Warn of Rising U.S.–China Cyber Confrontation
Cybersecurity analysts warn that such accusations signal an escalating digital confrontation between Beijing and Washington, with cryptocurrency-related investigations becoming a new battleground.
“This case demonstrates how blockchain forensics and geopolitics are increasingly intertwined,” said Patrick Howell O’Neill, a cybersecurity analyst at Bloomberg. “Digital assets are now part of global power dynamics.”
Ongoing Silence from U.S. Officials
The U.S. Department of Justice and the Chinese Embassy in Washington, D.C. have not issued official responses to the allegations. The dispute is expected to add pressure ahead of the next U.S.–China cyber dialogue, as both sides compete for control over global digital infrastructure and financial security systems.
