China’s top cybersecurity agency has accused the U.S. government of unlawfully seizing 127,000 BTC, valued around $13 billion, allegedly stolen from a Chinese mining pool in 2020.
Key Takeaways:
- China’s cybersecurity watchdog claims the U.S. seized 127,000 BTC from the 2020 LuBian mining-pool hack and falsely labeled them as criminal proceeds.
- The U.S. Department of Justice previously described the seizure as one of the largest in history; Beijing insists the action was politically motivated.
- Despite the allegations, the broader crypto market remains steady, as Bitcoin trades around $103K with neutral technical indicators as of this writing.
China’s National Computer Virus Emergency Response Center (CVERC) published a report claiming that the U.S. government seized bitcoin originating from the 2020 LuBian mining-pool hack. According to the agency, the 127,000 BTC, which is currently worth around $13 billion, were mischaracterized as criminal proceeds, allowing U.S. authorities to claim them under asset forfeiture laws.
The report highlights technical traces such as transaction clustering, dormant wallet activity, and delayed transfers, which Beijing interprets as evidence of a sophisticated, state-level cyber operation.
U.S. DOJ Frames It as Legitimate Forfeiture
The U.S. Department of Justice has not publicly responded to China’s recent allegation. In prior filings, however, the DOJ described large bitcoin forfeitures as the outcome of criminal investigations, citing money laundering and darknet-linked cases rather than cross-border state interference.
Beijing’s report maintains that these official explanations fail to account for what it identifies as state-linked patterns in the bitcoin flows. Independent analysts note that no publicly available court documents have yet verified the full scope of China’s claims.
Bitcoin Holds Steady Despite Geopolitical Tensions
The broader crypto market showed muted reaction amid China’s accusation of the unlawful BTC seizure of the U.S.. At the time of writing (8:30AM UTC), Bitcoin (BTC) is trading at approximately $103,624, reflecting modest drop at roughly 1.5% over the past 24 hours. CoinGecko’s real-time market data reveal that the largest cryptocurrency in the market peaked an intraday high or $105,466 and reached intraday lows around $102,461, which is near the current price.
Meanwhile, technical indicators suggest neutral sentiment: the 14-period Relative Strength Index (RSI) sits at 45, signaling neither overbought nor oversold conditions. Trading volumes remained average, indicating that investors are treating the dispute as a geopolitical story rather than an immediate liquidity threat.
Analysts Urge Caution in Attribution
Cybersecurity and legal experts caution against taking either government’s claims at face value. On-chain forensics can identify suspicious flows, but attributing them to state actors is complex and often inconclusive. Legal specialists note that cross-border asset forfeitures frequently involve sealed court records and mutual legal assistance agreements, limiting public transparency. Analysts emphasize that politically charged narratives may temporarily influence sentiment but rarely dictate long-term crypto investment strategies without verifiable legal outcomes.
Outlook
Beijing is expected to continue promoting its narrative through state media, while U.S. authorities may respond through official statements or court filings. For market participants, the near-term focus remains on price stability rather than geopolitics. Traders and institutional observers will likely watch for new disclosures from either side, which could cause volatility. Until verified documentation emerges, this episode highlights how cryptocurrency can intersect with geopolitics, cybersecurity, and cross-border enforcement actions.
Summary
China's cybersecurity agency alleges the U.S. seized 127,000 BTC from a 2020 mining-pool hack and labeled the forfeiture criminal, a claim that Beijing says is politically motivated, while markets remain largely steady.
