⚔️ China Accuses U.S. of State-Level Bitcoin Seizure in Massive Cyber Heist Scandal

Beijing reignites crypto-era cyber tensions, alleging Washington’s hidden hand behind one of the largest Bitcoin confiscations in history.

In a revelation shaking the digital balance of power, China has accused the United States of orchestrating a covert seizure of 127,272 BTC — roughly $13.4 billion — originally stolen in a 2020 hack on Chinese mining pool Lubian. According to a November 9 report from the China National Computer Virus Emergency Response Center (CVERC), the U.S. Department of Justice (DOJ) later confiscated those same coins under the guise of a criminal investigation.

Beijing’s narrative casts the episode as a clash between state hackers and state prosecutors, exposing deepening geopolitical fault lines over digital sovereignty and blockchain governance.

🔎 Quick Facts

• 💣 Amount in question: 127,272 BTC (~$13.4B)
• 💻 Source: 2020 hack on Lubian mining pool
• 🇨🇳 Report: China’s CVERC (via Global Times)
• 🇺🇸 U.S. response: DOJ classified BTC as criminal proceeds tied to Chen Zhi
• 🕵️‍♂️ China’s claim: “State-level seizure under legal façade”
• 📅 Timeline: Hack in 2020 → Seizure in 2025

💥 The 127,000 BTC Mystery

According to CVERC, the saga began in December 2020, when hackers exploited Lubian’s vulnerabilities and drained over 127,000 BTC. The stolen coins sat dormant for nearly four years — until blockchain analysts in mid-2024 traced their movement to wallets later identified by Arkham Intelligence as U.S. government-controlled.

Then, in October 2025, the DOJ announced it had seized those assets, calling them criminal proceeds linked to businessman Chen Zhi. China’s version? It calls the seizure a “robbery between thieves”, accusing Washington of exploiting the Lubian hack to assert digital control under a legal pretext.

“The seizure of over 127,000 Bitcoins from Chen Zhi is not criminal justice — it’s cyber power politics.” — CVERC Report, via Global Times

Forensic analysis by CVERC claims the BTC were never sold or laundered, unlike typical hacker behavior — instead, they remained frozen for years, suggesting state-level custodianship. The report accuses the U.S. of manipulating blockchain enforcement to gain geopolitical leverage.

🕸️ Who Really Controls the Blockchain?

Beijing’s move to publicize the case through Global Times — a state-affiliated media outlet — signals a coordinated narrative shift. The goal: frame the U.S. as a cyber-financial aggressor using blockchain law as a new form of soft power.

China ties the accusation to its broader agenda — digital yuan expansion, sovereign blockchain standards, and BRICS-led alternatives to Western-controlled platforms. By linking the DOJ’s actions to cyber warfare, Beijing effectively claims that Washington is weaponizing crypto enforcement.

CVERC’s report ends with a technical call to arms, urging stronger defenses across China’s blockchain networks:

• 🔐 Advanced cryptographically secure random number generators
• 🧱 Multi-layer defense systems
• ❄️ Cold storage for large reserves
• ⚡ Real-time anomaly detection

These aren’t just security recommendations — they’re a bid to rebuild trust in China’s blockchain ecosystem amid foreign cyber pressure.

🌍 Cyber Sovereignty Meets Crypto Geopolitics

The accusations revive an old question: who governs the decentralized world? Washington positions itself as the global enforcer against crypto crime. Beijing now counters that this “enforcement” doubles as state-sponsored expropriation — especially when Chinese-linked assets are involved.

This isn’t just a cyber spat — it’s the birth of crypto geopolitics: where Bitcoin wallets and blockchain data become instruments of state power. China may push for international rules against what it calls “state-level digital seizures”, likely rallying BRICS+ partners to challenge U.S. crypto dominance.

“If proven — or even if widely believed — these claims could fuel a new digital cold war, where Bitcoin wallets become battlegrounds for influence.”

The real question now isn’t just who owns the Bitcoin — it’s who controls the narrative behind it.

✅ TL;DR

• 🇨🇳 China accuses U.S. of state-level Bitcoin seizure.
• 💣 127,272 BTC stolen from Lubian in 2020; seized by DOJ in 2025.
• ⚔️ CVERC calls it “cyber power politics,” not criminal justice.
• 🌍 Beijing pushes for anti-seizure blockchain regulations.
• 💡 Debate reignites over who governs decentralized systems.

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