China Accuses US of Seizing 127K BTC in LuBian Pool Hack
China’s National Computer Virus Emergency Response Center (CVERC) has accused the US government of orchestrating a state-level hack in 2020 that stole 127,000 Bitcoin (BTC) from the LuBian mining pool. The coins, worth $1.27 billion at the time, now exceed $13 billion in market value. Blockchain analytics firm Arkham Intelligence traced significant asset movements and confirmed that US authorities controlled these wallets by mid-2024.
The US Department of Justice defends the seizure as a lawful action against stolen assets. Meanwhile, US agencies have ramped up efforts to target alleged crypto scam networks. Beijing’s allegations highlight rising geopolitical tensions around cross-border digital asset enforcement. Traders should watch for potential volatility in Bitcoin prices as regulatory risks intensify.
Bearish
The seizure of 127K BTC by US authorities and accusations of a state-level hack amplify regulatory and geopolitical uncertainty. In the short term, traders may react with selling pressure as they price in heightened legal risks and potential asset freezes. Over the longer term, persistent enforcement actions could erode institutional appetite for Bitcoin, although clear legal frameworks might eventually restore confidence. Overall, the immediate impact on Bitcoin prices is likely negative due to increased uncertainty.