Blockchain analytics firm Arkham Intelligence shocked the industry by disclosing that approximately $3.5 billion worth of Bitcoin was reportedly stolen in connection with the Chinese OTC desk LuBian. This hack, one of the largest documented BTC thefts to date, allegedly involved sophisticated laundering transactions designed to obfuscate the source and destination of the funds.
According to Arkham’s research, the incident traces back through multiple wallet transfers, revealing how illicit actors exploited technical gaps and OTC trading networks. While investigations are still ongoing, the findings have already spurred calls for tighter due diligence and improved cross-border cooperation to address vulnerabilities in large-volume crypto settlements.
This revelation is expected to amplify scrutiny on centralized platforms, especially in regions where regulatory oversight is less robust. For users and businesses, the lesson is a renewed emphasis on on-chain analytics and caution in interacting with OTC desks lacking transparent compliance.
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About the Author: Diana Ambolis
