China has pointed a finger at the United States, claiming the latter as the mastermind behind one of the largest cryptocurrency thefts in history. The Red Dragon accused the US of wrongfully acquiring 127,000 Bitcoins, worth approximately $13 billion, from a Chinese mining firm in 2020. China’s National Computer Virus Emergency Response Center, CVERC, labeled it a ‘state-sponsored cyber heist’ disguised as a law enforcement operation.
According to CVERC, the stolen Bitcoins belonged to LuBian, one of China’s biggest Bitcoin mining pools. The agency claims that the assets were siphoned off in December 2020 using malware linked with US intelligence networks.
Additionally, it is claimed that the stolen coins were not touched for nearly four years and were then slowly moved to US-controlled wallets in 2024. According to law enforcement, this manner of transferring bitcoins is indicative of a planned, state-level operation rather than typical hacking.
Washington has denied the accusations, saying the seized Bitcoins were part of legal investigations into global money-laundering and cyber fraud networks. The US Department of Justice maintains that the assets were lawfully confiscated and not stolen from any Chinese entity.
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The accusation has introduced a new facet to the already-strained US-China relationship, leading to their competition in the crypto market. Analysts view the conflict as pointing to digital currencies being increasingly used as tools of power and influence in international politics and cyber wars.
The fact that Bitcoin markets are already very responsive to government interventions, the situation raises concerns about cryptocurrencies being weaponized and that there is a closer connection between cyber operations and financial control.