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Bitcoin News Today: Digital Sovereignty Clash: US-China Tensions Escalate Over $13B Bitcoin Seizure

Bitcoin News Today: Digital Sovereignty Clash: US-China Tensions Escalate Over $13B Bitcoin Seizure

Bitget-RWA2025/11/12 06:34
By:Bitget-RWA

- China's CVERC accuses U.S. government of orchestrating a $13B Bitcoin theft from 2020 LuBian mining pool hack. - U.S. denies claims, asserting 2025 seizure targeted criminal proceeds from Cambodian fraudster Chen Zhi's $2B scheme. - Dispute highlights geopolitical tensions over digital sovereignty, with 127,426 BTC (0.65% of total supply) now central to U.S.-China crypto rivalry. - CVERC demands enhanced blockchain security measures as seized assets represent largest U.S. crypto forfeiture in history. -

China’s cybersecurity authorities have accused the United States of carrying out a $13 billion

heist from a Chinese mining pool in 2020, igniting a diplomatic and geopolitical clash over digital asset control and national sovereignty. The National Computer Virus Emergency Response Center (CVERC) claims that the U.S. government seized 127,000 bitcoins—originally stolen in a breach of the LuBian mining pool—through what it describes as a “state-level operation.” This move, according to a , a , and a , has been characterized as a significant escalation in the ongoing tensions between the U.S. and China. U.S. officials have rejected these claims, stating the asset seizure was a legitimate law enforcement measure targeting criminal proceeds associated with Cambodian businessman Chen Zhi, as detailed in a , a , and a .

The controversy revolves around a cyberattack on LuBian in December 2020, which led to the theft of 127,426 BTC—worth $3.5 billion at the time, according to a

.
Bitcoin News Today: Digital Sovereignty Clash: US-China Tensions Escalate Over $13B Bitcoin Seizure image 0
CVERC asserts that the hack was the work of a government-backed entity, citing the advanced techniques used and the lengthy delay before the stolen coins were moved, as reported in a and a . The remained untouched for nearly four years, only to be transferred in mid-2024 to wallets that blockchain analytics firm Intelligence later linked to the U.S. government, according to a and a . Chinese authorities argue that the timing and handling of the funds differ from typical cybercriminal behavior, pointing instead to a coordinated government operation, as noted in a and a .

The U.S. Department of Justice (DOJ) has justified the seizure, stating the bitcoins were tied to Chen Zhi’s alleged $2 billion cryptocurrency fraud and were confiscated through a civil forfeiture action in October 2025, according to a

and a . Federal prosecutors have not disclosed how the DOJ obtained access to the assets, prompting skepticism from Chinese officials, who argue that the U.S. has not provided sufficient transparency or proof regarding the origin of the funds, as reported by a and a . The confiscated bitcoins now represent the largest asset forfeiture in U.S. history, with a value exceeding $13 billion due to Bitcoin’s recent price rally, according to a .

This dispute has reverberated throughout the cryptocurrency market, with Bitcoin hovering around $105,000 as investors assess the broader geopolitical fallout. Experts point out that about 0.65% of Bitcoin’s total supply—roughly 127,000 coins—is now entangled in the controversy, which could restrict liquidity and impact long-term price trends, according to an

. At the same time, the U.S. has increased its Bitcoin holdings to 325,000 BTC, valued at nearly $36 billion, raising concerns about state influence over decentralized digital assets, as noted in a .

CVERC has urged the adoption of stronger blockchain security protocols, such as layered defenses and real-time surveillance, to guard against future government-sponsored cyberattacks, according to a

. The episode highlights the increasing significance of digital currencies in global affairs, with both the U.S. and China using cryptocurrency as a strategic asset in their ongoing rivalry, as discussed in a and a .

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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