Beijing's Cybersecurity Agency Points Finger at Washington Over Missing $13 Billion in Bitcoin

China’s cybersecurity watchdog has taken an unusual step by publicly accusing the United States government of orchestrating what could be one of history’s largest cryptocurrency thefts. According to a Bloomberg report, the National Computer Virus Emergency Response Center claims that approximately $13 billion worth of Bitcoin disappeared as part of what it describes as a sophisticated “state-level hacker operation”—a charge that escalates tensions between the two digital warfare adversaries.

The $13 Billion Question: December 2020’s Massive LuBian Heist

The alleged incident centers on the disappearance of 127,272 BTC from LuBian, a Bitcoin mining operation, in December 2020. This cybersecurity agency assertion isn’t merely speculative; officials point to a pattern they say is inconsistent with typical criminal activity. The stolen Bitcoin remained dormant and moved with deliberate caution—behavior suggesting governmental coordination rather than opportunistic cybercriminals rushing to liquidate assets. What makes this claim particularly explosive is the narrative connecting these stolen tokens to assets the US government later seized from Chen Zhi, chairman of the Cambodian Prince Group.

Connecting the Dots: Chen Zhi and the Seized Bitcoin Trail

Chen Zhi stands at the center of an intricate web. US prosecutors accused him of wire fraud and money laundering schemes in October, and in a landmark civil forfeiture action, federal authorities seized 127,271 BTC—the largest such confiscation in US history. Here’s where Beijing’s cybersecurity agency makes its leap: they suggest Washington didn’t merely intercept illicit funds, but rather orchestrated the original theft itself, then seized the proceeds to cover its tracks. A lawyer representing Chen and the Prince Group, Matthew L. Schwartz, has challenged this narrative as “seriously misguided,” while simultaneously requesting court time to trace the Bitcoin’s ownership history from 2020 to present day. Notably, the Department of Justice has remained silent on the specific methods used to obtain control of the cryptocurrency.

Escalating Accusations: A Pattern of Cyber Allegations

This accusation fits a broader pattern of complaints emanating from Beijing. Earlier in 2024, China alleged that the US exploited Microsoft Exchange vulnerabilities to target Chinese enterprises. More recently, Chinese officials claimed possession of evidence documenting a US cyber attack on the National Time Service Center. These repeated accusations suggest a coordinated information campaign to portray American cyber operations as increasingly aggressive and state-sponsored.

Current Market Snapshot and the Unresolved Mystery

As the diplomatic dispute simmers, Bitcoin itself continues navigating volatile markets. At current levels, BTC trades at $95,420, down 2.29% over the past 24 hours—a modest decline within typical trading ranges. The broader question remains unresolved: was the LuBian mining pool theft genuinely a US government operation, a criminal heist with convenient government seizure, or something else entirely? The silence from American officials and the competing legal narratives suggest this story is far from concluded.