China has raised a serious accusation. Its top cyber agency says the United States took control of more than 127,000 Bitcoin linked to the LuBian mining pool during a 2020 operation. The value sits near 13 billion dollars today. Both sides agree the coins were seized. They disagree on how and why.
China’s National Computer Virus Emergency Response Center says the event was not a typical cybercrime. They say the pattern of the wallet movement and the size of the funds point to a state level operation. They claim the United States gained control of 127,272 Bitcoin from LuBian in December 2020. LuBian was one of China’s largest mining pools at the time.
CVERC also says the wallet movements after the seizure were slow and planned. They argue this is not how normal crypto thieves behave
China says the United States never explained which court approved the action or what legal grounds were used. They say this silence is what makes them view the operation as political instead of criminal.
What the US Says
The United States has stayed quiet on the details. Reports from 2020 show that US agencies took down several crypto operations linked to money laundering and ransomware. These operations often involve large wallet seizures. But no agency has confirmed that the LuBian funds are part of any known case.
The US did confirm long ago that many Bitcoin wallets tied to cross border cybercrime were taken under legal orders. But the country never addressed China’s claims about LuBian. They also never released a public breakdown of the seized addresses. This gap in public records is what keeps the story alive.
LuBian was a mining pool that grew fast between 2019 and 2020. It held thousands of miners across several Chinese provinces. The pool had links to other Chinese operators that later shut down when China restricted mining nationwide.
The 127,000 Bitcoin tied to LuBian did not come from mining alone. Investigators say a mix of old exchange wallets, consolidation wallets, and unspent outputs sit inside that balance. China calls this a sign that external actors targeted the pool’s custodial wallets. Some global analysts agree the structure looks unusual for a normal theft.
The size alone makes this important. Thirteen billion dollars in Bitcoin does not move quietly. When old wallets worth this much shift, the market reacts. Traders track the addresses because movement from seized wallets sometimes signals liquidation or long term storage.
This also raises new questions about how governments handle crypto seizures. China says the United States should explain when it seizes foreign owned digital assets. The US says legal cases related to cybercrime follow sealed procedures until trial. Both sides frame the rules in a way that supports their own position.
The case also raises pressure on exchanges and mining operators. Many are now reviewing how they store large digital balances. Some firms say they will move more funds to multi layer cold storage to avoid single point failures.
This Can Cause A Larger Political Dispute
Yes. China is using this case to highlight what it calls unfair global control of digital infrastructure. They say the United States holds too much influence over routing, data centers, and blockchain analysis tools. The US says it fights crime networks that use crypto to hide money.
Some analysts think this dispute will push more countries toward national crypto custody systems. Others think it will push China to speed up its digital yuan rollout. When states feel they are losing control of cross border flows, they build their own protected systems.
The Market Reaction So Far
Traders have watched the old LuBian wallets closely. Large moves from old Bitcoin wallets often spark fear in the market. In this case the wallets did not suddenly sell. They shifted through controlled steps that match government style handling. This has kept the market stable for now.
Still, the crypto sector is on higher alert. Security research firms say state level seizures often lead to copycat attacks from criminal groups. That has already made many users review their own storage habits.
This relates to the rise in global crypto thefts this year. Reports show 3.1 billion dollars lost to Web3 Hacks in the First Half of 2025. This shows how exposed many systems still are and why both users and companies need stronger security.
Here is what experts expect.
China may push for a public audit of the seized addresses. They want confirmation of how the United States gained control and what legal basis was used. The United States may not respond, which means the dispute will likely stay unresolved.
Blockchain firms and analysts will keep tracking the wallets. If the funds move to regulated US addresses or government marked storage, the picture becomes clearer. If the funds stay quiet, the dispute continues.
The case could also push global regulators to set new rules for how countries handle foreign owned crypto once seized. This becomes important as more crimes involve cross border digital assets.
The LuBian story is another reminder that the crypto space sits inside global power struggles. Large confiscations, exchange failures, cybercrime waves, and sanctions all shape the market. The rise in hacks this year shows the risks users still face. Reports showed 3.1 Billion Lost to Web3 Hacks in the First Half of 2025, and security firms say these events will grow as attackers target weak storage systems and old wallets.
The China US Bitcoin dispute is not a simple crime story. It mixes cybersecurity, geopolitics, and financial control. Both sides are using the case to support larger goals. China wants stronger global rules around digital asset seizures. The United States wants to keep crime cases sealed until trial.
For users and investors, the best step is to stay informed and watch how the seized wallets move. Large government level transfers shape liquidity, sentiment, and long term trust in the system. The case also highlights the need for strong self custody practices and safe trading routes. Crypto continues to grow, but stories like this show why transparency and security matter more than ever.
