China has launched a stunning accusation against the United States government, claiming Washington orchestrated a massive 2020 cyberattack that resulted in the theft of Bitcoin valued at over $13 billion. The allegations emerged through an official report from China's National Computer Virus Emergency Response Center (CVERC) published over the weekend.
The $13 Billion Bitcoin Heist Allegation
According to the detailed CVERC report, the United States government was responsible for a December 2020 hack that targeted LuBian, one of the world's largest cryptocurrency mining operations. The cyberattack resulted in the theft of 127,272 Bitcoin belonging to Chen Zhi, the Chinese-born Cambodian business magnate and chairman of the Prince Group.
The timing of the alleged hack is particularly significant, occurring during the final days of the first Trump administration. CVERC investigators noted an unusual pattern in the stolen cryptocurrency's movement - or lack thereof. The tokens remained untouched in the attacker's digital wallet for four years following the theft, behavior that Chinese authorities argue doesn't match typical cybercriminal patterns.
Connection to US Justice Department Actions
The Chinese accusations directly relate to actions taken by the US Department of Justice in October. Federal prosecutors indicted Chen Zhi on charges of wire fraud and money laundering, alleging he directed operations at forced labor scam centers across Cambodia through his business empire.
Simultaneously with the indictment, the DOJ announced the historic forfeiture of 127,271 Bitcoin, describing it as the largest cryptocurrency seizure of its kind in any nation's history. Federal prosecutors have notably declined to explain how they gained control of the massive Bitcoin holdings.
The CVERC report explicitly challenges the US government's narrative, stating: "This is clearly not the behaviour of a typical hacker eager to cash out for profits, and more like a precise operation orchestrated by a national hacking organisation."
Corporate Denial and Diplomatic Fallout
The Prince Group has vehemently denied the allegations against its chairman. In a statement issued through US law firm Boies Schiller Flexner, the company "categorically rejects" accusations of wrongdoing by Chen or the firm and characterized the Bitcoin forfeiture as an "unlawful seizure of assets."
The current whereabouts of Chen Zhi remain unknown, adding another layer of mystery to the unfolding international drama. The cryptocurrency market has felt the impact of these developments, with Bitcoin prices falling by more than 10% since the DOJ's forfeiture announcement.
These allegations emerge amid already strained relations between Beijing and Washington concerning digital assets and cybersecurity. The new accusations inject additional friction into US-China diplomatic relations, potentially complicating ongoing discussions about technology governance and international cyber norms.
