Vietnam Cryptocurrency Exchange China Accuses the US of Seizing $13 billion worth of Bitcoin using the Chen Zhi case

China accuses the United States of not only stealing the Lubian hacking incident but also potentially orchestrating the event, then justifying the theft under the guise of “confiscating Chen Zhi’s illegal assets” to legitimize the act.

China accuses the US of using the Chen Zhi case to steal $13 billion worth of Bitcoin.

Vietnam Cryptocurrency Exchange China accuses the US of using the Chen Zhi case to confiscate $13 billion worth of Bitcoin

China has just made a serious accusation, claiming that the US government is the mastermind behind the scene. 127,000 Bitcoins were stolen in December 2020 and directly confiscated from Chen Zhi at the Lubian mine. The chairman of the Cambodian Prince Group, with a current valuation exceeding $13 billion.

If true, this would be the largest state-sponsored cyberattack in the cryptocurrency industry and could trigger a “cryptocurrency Cold War” between the superpowers of the US and China.

According to a recent technical report released by the China National Computer Virus Emergency Response Center (CVERC), the details of the incident have been reconstructed:

• In late December 2020, Chen Zhi’s Lubian mine was attacked. Over 127,272 Bitcoins were stolen, worth about $3.5 billion at the time. The tools and techniques used in this attack far exceeded the capabilities of ordinary hackers, almost only achievable by organizations with national-level technical expertise.
• After the hacking, these Bitcoins remained largely untouched for four years. By mid-2024, all the Bitcoins were transferred to a new wallet and have since been dormant.

—Arkham Intelligence labels these wallets as owned by the US government. Meanwhile, analysis by TRM Labs and Elliptic also indicates a connection between the stolen Lubian funds and the Prince Group wallet, further fueling suspicions that Washington may have seized the stolen Bitcoins.

• During 2021-2022, LuBian sent over 1500 OP_RETURN messages on the Bitcoin network, which are considered unsolicited. Ransom payments were made to recover the stolen Bitcoins.
• By October 14, 2025, the US Department of Justice (DOJ) officially… charged Chen Zhi, and 127,000 Bitcoins were confiscated. However, details about the location of the seized assets and recovery methods have not been disclosed. As a result, CVERC accuses the US Department of Justice of not only seizing these assets but also potentially orchestrating the Lubian hacker incident, then legitimizing the seizure under the pretext of “confiscating illegal assets.”

Chen Zhi is currently charged with operating investment scams, money laundering, and forced labor networks (using “digital slave” platforms). The seizure of Chen Zhi’s Bitcoins is also the largest in US DOJ history, with the total Bitcoin held by US officials exceeding 325,000, worth about $37 billion.

CVERC refutes the US claims that these are “seized criminal assets,” emphasizing that the slow and cautious flow of Bitcoin does not resemble typical money laundering activities but rather organized, intelligence-driven, or political activities.

Vietnam Cryptocurrency Exchange China accuses the US of using the Chen Zhi case to confiscate $13 billion worth of Bitcoin

The US insists that the seizure of 127,000 Bitcoins is a legitimate law enforcement action, part of a criminal case against Chen Zhi and his accomplices. As of press time, the US Department of Justice and Treasury have not responded to China’s accusations.

This incident is not just a dispute over cryptocurrency ownership but also reflects the escalating tensions between China and the US in cybersecurity, digital assets, and global blockchain control. If Beijing’s allegations are true, this could be the most serious cyberattack scandal in cryptocurrency history, shaking public confidence in the transparency of Western judicial institutions and raising a question: who truly controls the global circulation of Bitcoin? **$UMA **$SOL $ADA