LuBian’s $14.5B Bitcoin Heist Exposes Private Key Flaw
Arkham Intelligence’s on-chain analysis reveals the record $14.5B Bitcoin heist that drained 127,426 BTC from LuBian’s mining pool in December 2020. Attackers exploited a private key generation flaw, siphoning over 90% of the pool’s reserves. Two days later, they stole an additional $6M in BTC and USDT via the Omni layer. Despite moving 11,886 BTC to recovery wallets and sending 1,500 OP_RETURN pleas, LuBian never recovered the funds. A minor consolidation in July 2024 left the hacker’s address intact as the 13th largest Bitcoin wallet, surpassing the Mt. Gox hack. This Bitcoin heist eclipses the 2025 Bybit $1.5B exploit and highlights urgent blockchain security gaps, urging mining pools and exchanges to bolster defenses against similar attacks.
Bearish
This record $14.5B Bitcoin heist exposed a major security gap, shaking market confidence and likely triggering short-term sell pressure. While mining pools and exchanges may strengthen blockchain security over time, the systemic vulnerability highlighted by this exploit adds bearish sentiment. Traders are expected to remain cautious, increasing volatility and downward pressure on Bitcoin.