Chinese And US Governments Fighting Over Bitcoin? Here’s What We Know

A new technical report from China’s National Computer Virus Emergency Response Center (CVERC) has revealed shocking details about one of the largest Bitcoin hacks in history, which points to a hidden power struggle between China and the United States over $15 billion in Bitcoin. The stolen Bitcoin stayed untouched for four years, which blockchain experts say is unusual for typical hackers. Now, both China and the US are pointing fingers, with some analysts suggesting the US government may have secretly seized the coins.

China’s 2020 Bitcoin Hack Raises Questions About US Government Involvement

LuBian was a fast-growing Bitcoin mining pool launched in 2020, mainly operating in China and Iran. In late December 2020, hackers attacked its system and stole over 90% of its Bitcoin, matching almost exactly the 127,271 BTC later claimed by the US Department of Justice (DOJ).

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Soon after the theft, Chen Zhi, chairman of Prince Group in Cambodia, and his team sent over 1,500 messages on the Bitcoin blockchain, embedded in small transactions, begging the hackers to return the funds and offering a ransom. The hackers never responded. The stolen Bitcoin remained in a single wallet from 2020 until mid-2024, an unusual move, as most hackers move stolen coins quickly. Blockchain experts say this behavior suggests a carefully planned state-level operation.

Who Really Controls The 127,000 BTC?

In June 2024, the stolen Bitcoin finally moved again to new addresses, which well-known blockchain-tracking companies, including Elliptic and Arkham Intelligence, have identified as being under US government control. Then, on October 14, 2025, the US DOJ announced that it had seized 127,000 Bitcoins from Chen Zhi and charged him with financial crimes. 

Chinese experts, however, claim these are the same coins stolen from LuBian in 2020, suggesting that the US government may have controlled them years earlier. According to the CVERC report, the unusual behavior of the stolen coins remaining dormant for four years suggests that possible state-level operations are now intersecting with the DOJ’s legal case against Chen.

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Blockchain analysis reveals that all 25 Bitcoin wallet addresses mentioned in the US DOJ indictment correspond to the addresses involved in the 2020 hack. Only a tiny fraction of the stolen Bitcoin was ever moved before 2024, highlighting the unusual, state-level nature of the operation.

The report further suggests that the US may have acquired the stolen funds long before announcing the seizure, possibly even participating in or benefiting from the original hack. Chinese analysts argue that this appears to be​​ a “state-level double-cross”, where one government used hacking tools to seize digital assets under the cover of law enforcement. 

Meanwhile, the US DOJ has not explained how it obtained Chen Zhi’s private wallet keys or why those wallets exactly match the stolen LuBian funds, leaving the question of accurate control unresolved.

Featured image created with Dall.E, chart from Tradingview.com