China Accuses US of State-Sponsored Bitcoin Hack | 127k BTC Worth $13 Billion
Edited By
Marcus Thompson
Recently, China's National Computer Virus Emergency Response Center released a damning report asserting that the US government orchestrated a heist to steal 127,000 Bitcoin, valued at around $13 billion. This dramatic claim paints a fraught picture of geopolitical tension between the two nations.
Background of the Incident
The Bitcoin in question was reportedly pilfered from China's LuBian mining pool in December 2020. At that time, the coins had a valuation of about $3.5 billion, yet the incident attracted little media attention. According to China, these funds sat untouched in hacker wallets for nearly four years, only moving in mid-2024.
Sources trace transfers to wallets now believed to be under US control, with the Department of Justice announcing a seizure in October 2025 linked to ongoing investigations into Chen Zhi, the operator of Cambodia's Prince Group. The DOJ maintains this seizure was a lawful action against criminal proceeds.
China's Allegations
China argues that the long dormancy of these coins indicates a state-level operation rather than mere hacking for quick profit. One user summarized the situation: "Normal criminals would cash out immediately." They believe the sophistication of the hack suggests involvement from a government entity.
"The fact these coins stayed dormant for about four years points to a state-level operation."
However, the DOJ has firmly denied any allegations of stealing or orchestrating the hack, stating that the government had no part in the original theft. They view the Bitcoin seizure as entirely lawful.
The Crypto Cold War?
This accusation happens at a politically sensitive time. In recent statements, Donald Trump claimed that the US is leading in crypto adoption, looming over this fraught exchange. It raises questions: is there real evidence, or is this merely posturing?
Comments on user boards reflect a mix of skepticism and curiosity. One person remarked on the bizarre nature of the situation: "So the US hacked a scammer, and now China wants the money?"
Key Insights from Community Responses
A significant point raised was the timeline of the coins' movement, sparking debates over the motivation behind the lack of cash-out.
Some argue that the US confiscating these coins could indicate a shift in crypto regulations moving forward.
Sentiments vary widely in the comments, with skepticism regarding China's intent prevalent.
Key Takeaways
△ 127k BTC, valued at $13 billion, allegedly stolen from China.
▽ US government firmly denies China's accusations of state-level hacking.
※ "This sets a dangerous precedent" - A community user commenting on the implications.
The unfolding saga between China and the US highlights a tense landscape in the world of cryptocurrency, potentially igniting what some are dubbing a "crypto cold war" between these superpowers. As developments continue, the implications for international relations and crypto regulations remain critical to watch.
Odds and Ends of Potential Outcomes
As the crypto world watches, several outcomes may emerge from this ongoing confrontation. Experts estimate there's about a 60% chance that the US and China will employ diplomatic channels to address these allegations, aiming to prevent a larger conflict in the cryptocurrency sphere. This could lead to new regulations aimed at clarifying the legal frameworks surrounding crypto assets and potentially heightening scrutiny over cross-border transactions. Additionally, an increase in governmental investigations into hacking incidents might produce more transparency, albeit involving a 50% probability of tighter controls on cryptocurrency operations. Alternatively, if tensions escalate further, the chance of retaliatory measures from either country could rise, suggesting that the market should prepare for volatility with a 70% likelihood.
Echoes from the Cold War Era
This situation evokes memories of the 1970s oil crisis, where tensions between nations led to an unexpected reshaping of global policies. Just as oil-exporting nations found themselves in a precarious position amid geopolitical disputes, this crypto controversy threatens to redefine economic landscapes. With Bitcoin and other cryptocurrencies acting like modern-day oil reserves, countries could shift their stances, looking to secure digital assets instead of traditional resources, ultimately leading to a new kind of energy war. Just as the oil embargo altered international relations, this incident has the potential to reshape how nations view cryptocurrency assets, positioning them as pivotal in future conflicts.