Arkham Uncovers 127,000 BTC Hidden Bitcoin Heist at LuBian
Arkham Intelligence has revealed the largest concealed Bitcoin heist in history after hackers exploited a 32-bit entropy vulnerability in LuBian mining pool’s private key generation to steal 127,426 BTC (then $3.5bn) in December 2020. Two days later, the attacker used the Omni Layer protocol to siphon a further $6m in BTC and USDT. LuBian launched recovery via 1,516 OP_RETURN micro-transactions, reclaiming 11,886 BTC now worth $1.35bn, while the remaining 115,540 BTC have remained dormant. On-chain analysis shows funds sat idle until a major consolidation in July 2024, and the wallet is now the 13th largest on the Bitcoin network. The dormant coins are worth over $14bn today, underlining both the market’s resilience and the potential risk if they ever move. This Bitcoin heist underscores critical mining pool security risks and the importance of robust key generation practices for traders.
Neutral
The revelation of a 127,426 BTC heist, its prolonged dormancy, and partial recovery indicates limited immediate selling pressure, as market resilience was proven when large transfers did not trigger volatility. Short-term impact remains neutral, given the coins stayed untouched for years. Long-term, traders should monitor on-chain movements: any significant transfer from this large dormant wallet could introduce bearish pressure, but until then, the market impact remains balanced.