China Claims U.S. Stole $13 Billion in Bitcoin: Understanding the 2020 LuBian Hack

A new dispute between China and the United States has placed cryptocurrency at the center of growing tensions between the world’s two largest powers. China’s cybersecurity agency has accused the U.S. of stealing 127,000 Bitcoin worth around $13 billion today from a major Chinese mining pool called LuBian back in 2020. According to Chinese officials, this was not the work of ordinary hackers but a carefully planned, state-backed cyber operation.

These claims have reopened a case that puzzled many in the crypto community for years. The stolen Bitcoin stayed untouched for almost four years, and when the funds finally moved in 2024, analysts linked the wallets to the U.S. government. The U.S. strongly denies any wrongdoing, insisting the funds were lawfully seized during a criminal investigation.

How the 2020 LuBian Breach Happened

China’s accusation centers on the December 2020 attack on LuBian, one of the country’s well-known Bitcoin mining pools. The report from China’s National Computer Virus Emergency Response Center claims that the hack was carried out using advanced tools normally associated with government-level cyber teams. These tools allowed attackers to breach LuBian’s wallet systems through unknown vulnerabilities and quietly move the Bitcoin without being detected.

After the theft, the funds remained inactive. This long silence made the incident even more mysterious, because criminal hackers typically move stolen assets quickly to avoid detection. The sudden activity in 2024 four years after the theft caught analysts’ attention. Blockchain intelligence platforms linked the new wallets to the U.S. government, raising fresh questions about what happened during those missing years.

The U.S. Response: Legal Recovery or Something Else?

U.S. officials reject China’s claim entirely. According to the U.S. government, the Bitcoin was not stolen by American agencies but seized in connection with a criminal case involving money laundering. U.S. authorities often recover digital assets during investigations, and they argue that this situation follows standard legal procedures.

However, China’s report suggests the operation was coordinated from the beginning. It claims the same wallets used in the 2024 transfers show signs of U.S. government involvement, implying the theft and later seizure were part of a single plan. Cybersecurity specialists have noted the attack’s technical sophistication, which adds weight to China’s concerns but does not prove responsibility.

It’s difficult to determine who is responsible for a cyberattack, and the LuBian case shows why. Even though investigators can study digital evidence, that evidence can also be faked or misdirected. Both countries involved claim they have proof supporting their own version of events, leaving the global crypto community unsure about what truly happened.

The LuBian incident also reveals how much the digital asset world has changed. In the past, government-backed hackers mostly targeted traditional systems like national databases or energy grids. Today, they are increasingly focusing on cryptocurrencies. Exchanges, wallets, and mining pools have all become targets, and billions of dollars have been stolen over the last few years. Unfortunately, this trend is still growing.

Mining pools, such as LuBian, are especially attractive to hackers because they control large amounts of Bitcoin at any given time. This case highlights the need for strong protection systems, including safer offline storage (cold wallets), multi-signature approvals for large transfers, and frequent security checks. The fact that the stolen Bitcoin remained untouched for years shows how attackers can hide for long periods, making early detection and constant monitoring extremely important.

This event may also shape future global policies. Countries may begin working on new rules to deal with crypto-related cybercrime, improve information-sharing across borders, and require stricter security standards for exchanges and custodians. As digital assets become more important worldwide, cooperation between nations will be more necessary than ever.

A Global Warning for Crypto Users

The growing conflict between China and the U.S. over the alleged $13 billion Bitcoin theft is more than just a political argument. It shows that cryptocurrency has become deeply connected to technology, global finance, and national security. The LuBian case proves how quickly digital assets can get pulled into international disputes, and it highlights why users, miners, and companies must take security more seriously than ever.

The main takeaway from this situation is simple, large cyberattacks are becoming more advanced, and old security practices are no longer enough to protect valuable assets. As more governments get involved in regulating and investigating digital currencies, the crypto industry must be ready for a future where cyber risks and global political tensions are closely tied together.