A new flashpoint has emerged in the escalating US-China tech rivalry, with Beijing leveling an extraordinary accusation against Washington. China claims the United States orchestrated a massive 2020 hack of a crypto mining pool, then seized the stolen Bitcoin under the guise of legitimate law enforcement, marking a significant escalation in digital asset tensions between the world's two largest economies.
China's "State-Sponsored" Theft Allegation
China's National Computer Virus Emergency Response Center (CVERC) has released a scathing report, asserting that the U.S. was behind the December 2020 breach of the LuBian mining pool, which resulted in the theft of 127,000 Bitcoin. Valued at approximately $13 billion, CVERC describes this as a "state-level hacking" operation, not a typical criminal act. The Chinese agency contends that American authorities subsequently seized these coins in October 2025, falsely presenting the action as standard asset forfeiture related to anti-money laundering investigations. CVERC disputes the U.S. narrative, suggesting the timing and methodical transfer patterns of the dormant Bitcoin point to deliberate government involvement from the outset.
A Clash of Justifications and Geopolitical Implications
The U.S. Department of Justice staunchly defends its actions, characterizing the seizure as a lawful enforcement against illicit proceeds, specifically linking the Bitcoin to an alleged crypto fraud scheme operated by Chen Zhi. However, CVERC dismisses this explanation as an "internal showdown among thieves," arguing that a significant portion of the seized funds – including legitimately mined and earned Bitcoin – did not originate from illegal sources. This high-stakes dispute transforms Bitcoin from a neutral digital asset into a potent diplomatic weapon, intensifying the broader technological and cybersecurity tensions between the two global powers. The considerable sum of Bitcoin, representing 0.65 percent of the total circulating supply, raises critical questions about the true neutrality of decentralized assets amidst clashes between superpowers. The U.S. has yet to formally respond to CVERC’s specific allegations, maintaining its stance on lawful seizure.
