China Disputes US $14.5B Bitcoin Seizure from LuBian Pool
China’s National Computer Virus Emergency Response Center (CVERC) alleges that the US Department of Justice (DOJ) conducted an unlawful Bitcoin seizure of 127,272 BTC—valued at roughly $14.5 billion—from the LuBian mining pool after a December 2020 breach. Blockchain records show identical transaction fees, suggesting an automated transfer of dormant coins. On July 5, 2024, the funds moved to wallets linked to US authorities, followed by an official forfeiture in October 2024—marking the DOJ’s largest Bitcoin seizure to date.
Prince Group founder Chen Zhi tried small BTC transfers to contact the hacker and recover his assets but received no reply. In October 2025, the DOJ indicted Chen Zhi, asserting all seized assets stemmed from crime. CVERC’s technical report disputes this, estimating 17,800 BTC were mined legitimately and 2,300 BTC were valid pool rewards, with the remainder held in exchanges.
The report labels the incident an overreach of US jurisdiction and signals rising cross-border crypto tensions. Traders should monitor regulatory risks and potential market volatility as US-China disputes intensify.
Bearish
This large-scale Bitcoin seizure by the US DOJ and China’s formal dispute injects regulatory uncertainty into the market. In the short term, traders may react with increased volatility and sell pressure as concerns over cross-border asset forfeiture intensify. Over the longer term, persistent US-China crypto tensions could dampen institutional appetite and slow adoption in key markets. The perception of jurisdictional overreach may also prompt risk-averse investors to reduce exposure to Bitcoin, reinforcing a bearish outlook.