China’s National Computer Virus Emergency Response Center (CVERC) has accused the U.S. government of being responsible for the hack on the LuBian mining pool. This comes as nation-states move to adopt crypto, with the U.S. and China currently holding the most BTC among government entities.
China’s CVERC Claims U.S. Government Stole 127,272 Bitcoin
According to a Global Times report, the agency alleged that the U.S. government carried out the hack on the LuBian mining pool, stealing 127,272 BTC from the BTC miner. These funds reportedly belong to Chen Zhi, Chairman of Cambodia’s Prince Group.
Notably, the U.S. Department of Justice (DOJ) filed a forfeiture order last month to claim ownership of 127,271 Bitcoin it seized from Zhi as part of the proceeds of a ‘pig butchering’ scam. The DOJ had also confirmed at the time that the funds were in its custody.
This had sparked speculation that the U.S. government was responsible for the hack on LuBian, as the funds in question were the same ones hackers stole from the BTC miner in 2020. Now, China’s CVERC has claimed that these funds were accessed through a state-level hacking organization, pointing to the U.S., which is in control of the coins.
The hacked funds were dormant until 2024, when they were transferred to an account that the on-chain analytics platform Arkham Intelligence has tagged as belonging to the U.S. government.
Battle For Crypto Dominance Among Nation-States
The CVERC’s accusation against the U.S. government comes as more nation-states adopt crypto. The U.S. and China currently hold the most Bitcoin among countries. BitcoinTreasuries data shows that 326,588 BTC, including the coins that it seized from Zhi through LuBian. Meanwhile, China holds 190,000 BTC.
U.S. President Donald Trump has made it clear that he wants the U.S. to lead the way in crypto over China. While China has yet to take a clear stance on crypto, the U.S. under Trump has warmed to the crypto industry, including providing regulatory clarity for crypto firms. The U.S. Congress is currently working on the crypto market structure bill to provide a comprehensive framework for the industry.
Furthermore, the U.S. also has plans to establish a strategic Bitcoin reserve using its current BTC holdings. Pro-crypto Senator Cynthia Lummis introduced the BITCOIN Act to establish the reserve and provide legislative backing for Trump’s earlier executive order.
Other countries, such as Brazil, are also pushing to establish a BTC reserve. Meanwhile, Kyrgyzstan has established a national crypto reserve that includes other crypto assets, such as Binance Coin (BNB).
