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<p>China’s National Computer Virus Emergency Response Center (CVERC) accused U.S. authorities of taking control of more than 127,000 BTC tied to a 2020 mining-pool hack. Local media <a href="https://www.globaltimes.cn/page/202511/1347745.shtml" rel="noopener noreferrer nofollow">say</a> the agency referred to the event as a “state-level cyber seizure.”</p>
<p>The Bitcoin was worth about $3.5 billion at the time and nearly $13 billion today. The funds are linked to Chen Zhi, Chairman of Cambodia’s Prince Group.</p>
<h5>Background: LuBian Pool Breach</h5>
<p>CVERC reports that hackers attacked the LuBian mining pool on December 29, 2020. They allegedly exploited a system flaw and transferred 127,272 BTC within two hours.</p>
<p>Chen Zhi and his group later posted hundreds of on-chain messages offering a reward and asking for the funds to be returned. Hackers never responded.</p>
<p>The Bitcoin stayed inactive until June 2024, when it moved to a new wallet cluster.<br> According to CVERC, the breach forced LuBian to shut down and wiped out over 90% of its assets.</p>
<h5><strong>U.S. DOJ Action</strong></h5>
<p>On October 14, 2025, the U.S. Department of Justice unsealed charges against Chen Zhi and said it had seized roughly 127,000 BTC tied to him and his companies.</p>
<p>Blockchain analytics firms, including Arkham Intelligence, later flagged wallet movements consistent with U.S. government control.</p>
<h5><strong>China’s Reaction</strong></h5>
<p>CVERC claim the U.S. took control of the hacked Bitcoin instead of returning it. CVERC called it a case of “thieves falling out among themselves.”</p>
<p>Investigators said they traced about 127,272 BTC through Bitcoin’s public ledger.<br> They identified roughly 17,800 BTC from direct mining, around 2,300 BTC from pool payouts, and about 107,000 BTC moved through exchanges and other sources.</p>
<p>CVERC also noted that LuBian posted over 1,500 messages seeking the return of the funds before they moved in mid-2024.</p>
<h5><strong>U.S. Charges Against Chen Zhi</strong></h5>
<p>The U.S. government presents a different narrative.<br> Federal prosecutors in Brooklyn<a href="https://www.justice.gov/opa/pr/chairman-prince-group-indicted-operating-cambodian-forced-labor-scam-compounds-engaged" rel="noopener noreferrer nofollow"> accused</a> Chen Zhi (also known as Vincent) of wire-fraud and money-laundering conspiracy.</p>
<p>According to the DOJ, Chen oversaw forced-labor compounds in Cambodia involved in large-scale crypto investment scams, often called “pig-butchering.”<br> Prosecutors say the schemes defrauded victims in the U.S. and worldwide, generating billions in illicit proceeds.</p>
<blockquote>
 <p>“Today’s action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud,” said Attorney General Pamela Bondi and Deputy Attorney General Todd Blanche.</p>
</blockquote>
<h5><strong>Crypto Security Tension</strong></h5>
<p>The case adds to rising geopolitical friction over digital assets.</p>
<p>Chinese analysts say the LuBian incident exposes weaknesses in crypto security, especially around key management and randomness tools.</p>
<p>The report urges mining pools to strengthen monitoring systems and security layers. It also warns that poor private-key practices remain one of the biggest risks in the digital-asset ecosystem.</p>

China Questions U.S. Seizure of $13B Bitcoin

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