China Accuses US of Secretly Seizing $13 Billion in Bitcoin

China has reportedly accused the United States of secretly seizing 127,000 Bitcoin worth about $13 billion from the 2020 LuBian mining pool hack, calling it a state-backed cyber operation. 

However, the US denied the claim, saying the Bitcoin was lawfully seized in a completely separate fraud case. The dispute renewed global concerns over digital asset sovereignty.

China has reportedly accused the US of seizing funds recovered from the LuBian hack under the guise of a law enforcement operation.

The US Department of Justice (DOJ) has reportedly countered these accusations. It said the US legally seized the Bitcoin as part of a fraud probe into Cambodian businessman Chen Zhi, who faces allegations of running crypto scams and human trafficking operations across Southeast Asia.

Last month, the DOJ filed a civil forfeiture case seeking control of approximately 127,271 Bitcoin, valued at over $15 billion. US officials said the move was coordinated with international partners to compensate victims of Chen’s network.