Bitcoin Bilateral Battle: US-China Fight Over $15B BTC

The digital asset landscape, often touted for its decentralized nature and freedom from traditional geopolitical constraints, finds itself at the center of a burgeoning international dispute. A recent technical report from China’s National Computer Virus Emergency Response Center (CVERC) has cast a long shadow over one of the largest Bitcoin heists in history, suggesting a high-stakes power struggle between the People’s Republic of China and the United States of America over an astonishing sum of approximately $15 billion in Bitcoin. This intricate saga, marked by an unusually prolonged period of dormancy for the stolen funds, raises profound questions about state-level involvement in cryptocurrency operations and the evolving dynamics of cyber espionage and digital asset control.

Key Points:

• A 2020 hack on Chinese mining pool LuBian resulted in the theft of over 127,000 BTC.
• The stolen Bitcoin remained dormant in a single wallet for nearly four years, an unusual pattern for typical cybercriminals.
• In mid-2024, these long-inactive funds were transferred to new addresses, subsequently identified by blockchain analytics firms as being under US government control.
• The US Department of Justice (DOJ) later announced the seizure of 127,000 Bitcoins from Chen Zhi, charging him with financial crimes.
• China's CVERC report alleges that the seized Bitcoins are precisely those stolen from LuBian, implying potential US government involvement in the original hack or its subsequent control of the illicit assets.
• This unfolding narrative suggests a potential "state-level double-cross," blurring the lines between cybercrime, national security, and international law enforcement.

The Enigmatic LuBian Hack of 2020

In December 2020, the cryptocurrency world witnessed a significant breach targeting LuBian, a rapidly expanding Bitcoin mining pool primarily operating within China and Iran. This sophisticated cyberattack resulted in the expropriation of over 90% of LuBian’s Bitcoin holdings, a colossal sum that, crucially, almost perfectly corresponded to the 127,271 BTC later claimed by the US Department of Justice. The sheer scale and precision of the theft immediately set it apart from conventional criminal enterprises.

Unpacking the Initial Theft and Unusual Dormancy

Following the heist, the stolen digital assets exhibited highly unusual behavior. For nearly four years, the entire cache of Bitcoin remained untouched within a single wallet address. This prolonged dormancy is a significant anomaly in the realm of cryptocurrency theft, where perpetrators typically move or launder funds rapidly to obscure their tracks and convert assets into less traceable forms. Blockchain experts universally note that such extended inactivity strongly suggests an operation of considerable planning, resources, and potentially, state-level backing, rather than the impulsive actions of typical hackers driven by immediate financial gain.

The Unanswered Pleas of Prince Group's Chen Zhi

Amidst the immediate aftermath of the hack, Chen Zhi, chairman of Cambodia's Prince Group, and his dedicated team embarked on an extraordinary digital campaign. Utilizing the inherent transparency of the Bitcoin blockchain, they sent over 1,500 messages embedded within minuscule transactions, desperately pleading with the unknown perpetrators for the return of the funds and offering a substantial ransom. These fervent appeals, however, met with an impenetrable silence. The absence of any response further solidified the notion that the attackers were not operating within the typical framework of cyber extortion, reinforcing the suspicion of a more profound, non-monetary motive behind the seizure.

The US Department of Justice's Intervention

The four-year silence surrounding the stolen Bitcoin was abruptly broken in mid-2024. The long-dormant funds finally stirred, migrating from their original wallet to a series of new addresses. This movement immediately triggered alerts across the blockchain analytics community, with prominent firms like Elliptic and Arkham Intelligence swiftly identifying these new addresses as being under the control of the US government. This revelation set the stage for a dramatic official announcement.

Seizure Announcement and Conflicting Narratives

On October 14, 2025, the US Department of Justice formally declared a momentous achievement: the seizure of 127,000 Bitcoins from Chen Zhi, simultaneously announcing financial crime charges against him. While presented as a triumph of law enforcement, this announcement immediately ignited a complex web of questions, particularly from Chinese experts. Their contention was unequivocal: these were precisely the same Bitcoins that had been violently expropriated from LuBian in 2020, suggesting a profound and unsettling implication – that the US government might have exerted control over these digital assets years prior to its official declaration.

Blockchain Forensics: Connecting the Dots

Forensic analysis of the blockchain unequivocally supports the Chinese assertion. Every single one of the 25 Bitcoin wallet addresses explicitly mentioned in the US DOJ's indictment was definitively linked to the addresses involved in the original 2020 LuBian hack. This direct correlation provides compelling evidence for the Chinese perspective. Furthermore, only an inconsequential fraction of the stolen Bitcoin experienced any movement before the widespread transfers in 2024, an observation that underscores the extraordinary, calculated nature of the entire operation and strengthens arguments for state-level orchestration.

A Geopolitical Chess Match: China's Accusations

The CVERC report serves as a formal and stark articulation of China’s suspicions. It paints a picture of intricate geopolitical maneuvering, where the unusual behavior of the dormant coins – a hallmark of sophisticated, long-term operations – now directly intersects with the US DOJ’s legal proceedings against Chen Zhi. The report’s implications are far-reaching, fundamentally challenging the narrative presented by the US government.

The CVERC Report: Allegations of a State-Level Double-Cross

Chinese analysts, drawing from the CVERC’s findings, have advanced the serious allegation of a "state-level double-cross." This theory posits that one government might have illicitly acquired these digital assets through clandestine hacking activities, subsequently leveraging a law enforcement framework to legitimize the seizure. Such an interpretation transforms a seemingly straightforward criminal investigation into a complex geopolitical contest, where digital assets become instruments in a broader struggle for influence and control.

The Unresolved Questions Surrounding Wallet Keys

Central to the escalating dispute are the persistent, unanswered questions directed at the US DOJ. Foremost among these is the lack of a comprehensive explanation regarding how the US authorities obtained Chen Zhi's private wallet keys. Equally perplexing is the precise congruence between these seized wallets and the funds originally plundered from LuBian. The absence of transparent answers on these critical points leaves the precise chain of custody and the true locus of control over the 127,000 BTC shrouded in ambiguity, fueling further speculation and distrust between the two global powers.

Implications for Global Cryptocurrency Governance

This Bitcoin saga transcends a mere financial crime; it has profound implications for the nascent field of global cryptocurrency governance. If allegations of state involvement in hacking and subsequent legal seizures prove accurate, it would fundamentally undermine the foundational principles of decentralization and trust that underpin the entire digital asset ecosystem. Such incidents challenge existing international legal frameworks, highlighting the urgent need for enhanced cooperation and clearer protocols for dealing with cross-border cybercrime and digital asset recovery in a world where state actors may increasingly operate in the digital shadows. The lack of transparency in this case could set a dangerous precedent, eroding confidence in the integrity of international law enforcement actions within the crypto space.

Furthermore, the incident forces a re-evaluation of national security interests within the digital economy. As nations vie for technological supremacy and economic leverage, the control of significant cryptocurrency holdings, particularly those obtained through dubious means, could become a new front in geopolitical competition. It necessitates a more robust dialogue on digital sovereignty, cyber warfare ethics, and the definition of jurisdiction in a borderless digital realm. This scenario also places immense pressure on blockchain analytics firms and exchanges to maintain neutrality and provide unbiased intelligence, as their findings can inadvertently become instrumental in international disputes.

Conclusion

The narrative surrounding the LuBian Bitcoin hack and the subsequent US DOJ seizure remains one of profound mystery and escalating international tension. While the US maintains its stance of legitimate law enforcement, China’s detailed report points to a much deeper, more intricate geopolitical game. The unprecedented dormancy of the stolen funds, the precise matching of wallet addresses, and the unanswered questions surrounding the acquisition of private keys collectively paint a picture far more complex than a simple criminal prosecution. This ongoing saga serves as a critical case study in the evolving intersection of cybercrime, national security, and the future of digital asset control, demanding greater transparency and international dialogue to resolve the simmering conflict over a $15 billion Bitcoin fortune.