China Accuses US Government of Orchestrating $13 Billion Bitcoin Heist

In a significant escalation of cyber warfare rhetoric, China's cybersecurity agency has leveled a serious accusation against the United States government. According to a recent Bloomberg report, the Cyberspace Administration of China claims the US orchestrated the theft of approximately $13 billion worth of Bitcoin, further straining already tense relations between the two global powers. This bold allegation highlights the increasing geopolitical stakes in the realm of digital assets and national security.

The Alleged State-Sponsored Cyber Operation

The controversy centers on the theft of 127,272 Bitcoin from the Luobian Bitcoin mining pool in December 2020, an incident that stands as one of the largest cryptocurrency heists in history. China's National Computer Virus Emergency Response Center (CVERC) argues that the discreet and delayed movement of these stolen funds points away from typical criminal activity and towards a sophisticated "state-level hacker operation" orchestrated by the US. This assertion is backed by alleged links between the Luobian Bitcoin and tokens later seized by the US government, which authorities claim are connected to Chen Zhi, chairman of Cambodia's Prince Group, who faced US accusations of wire fraud and money laundering in October.

Unanswered Questions and Growing Cyber Tensions

Despite the US Department of Justice initiating a record civil forfeiture complaint for 127,271 Bitcoin related to the Chen Zhi case, federal prosecutors have conspicuously refrained from disclosing the methods used to gain control of these substantial crypto assets. This lack of transparency fuels China's narrative, which characterizes the alleged US actions as a "black eats black" maneuver by a state-level hacking entity. The current accusation is not isolated; China has previously alleged US involvement in cyberattacks against major Chinese companies and critical national infrastructure, intensifying the ongoing cyber rivalry between the two nations. Chen Zhi's legal team vehemently denies the US government's claims, working with cryptocurrency experts to trace the origins and movements of the seized Bitcoin. As of the latest update, Bitcoin was trading at $102,550, experiencing a 3% loss over a 24-hour period amidst these geopolitical developments.