China Alleges US Orchestrated $13B Bitcoin Hack
China’s National Computer Virus Emergency Response Center (CVERC) alleges the US orchestrated a $13 billion Bitcoin hack in December 2020. CVERC claims state-level hacking tools drained 127,000 BTC from China’s LuBian mining pool and that US authorities later seized the coins in 2024 under false asset forfeiture pretenses.
The US Department of Justice maintains the seizure was a lawful action linked to an anti-money laundering probe into Cambodian businessman Chen Zhi’s crypto fraud scheme. US officials formally announced the Bitcoin asset forfeiture on October 14, 2025, citing connections to illicit funds.
Beijing dismisses the US narrative and labels the episode a “state-sponsored operation” disguised as law enforcement. It argues that the timing and dormant period of the coins signal government rather than criminal activity, making the 2020 Bitcoin hack a geopolitical flashpoint.
The 127,000 BTC represents roughly 0.65% of circulating supply, with potential market impact if tensions escalate. Traders should watch policy developments, on-chain movements, and asset forfeiture actions that may trigger volatility in crypto markets.
Bearish
This high-profile dispute between China and the US over a $13 billion Bitcoin hack and seizure injects geopolitical risk into crypto markets. Historically, major regulatory or state conflicts—such as the 2014 Mt. Gox hack aftermath or China’s 2017 crypto ban—have triggered sharp downturns in Bitcoin prices due to uncertainty and liquidity concerns. The allegation ascribes state-sponsored motives to the US Department of Justice’s asset forfeiture, likely undermining investor confidence and prompting sell-offs in the short term.
In the long run, persistent US-China crypto tensions could lead to fragmented regulatory frameworks and restricted cross-border crypto flows, further weighing on market sentiment. Traders may reduce risk exposure until clarity emerges, reinforcing a bearish outlook.