China accuses US of involvement in theft of US$13 billion in bitcoin

China’s National Computer Virus Emergency Response Center accuses the United States government of being behind the theft of US$13 billion (close to R$68.7 billion at current exchange rates) of the bitcoin cryptocurrency. In total, 127,272 bitcoin tokens were taken from the LuBian mining center in December 2020.

The accusation made in one report is that there was a “state-level” hacking operation conducted by the US. After the cryptocurrencies were stolen, a civil action is now taking place to formalize the confiscation and put a clean slate on the theft.

From a US perspective, mining company LuBian, once one of the largest in the world, was being used for money laundering through financing the crypto mining operation.

The person behind the group is Chen Zhi, leader of the Cambodian conglomerate Prince Group. He is accused by the Americans of committing electronic fraud and laundering money at LuBian. The US government’s complaint is that the confiscated cryptocurrencies were not related to mining.

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However, the US Department of Justice did not reveal the date of the confiscation, considered the largest in the country’s history, which raises suspicions that the action was carried out as a result of ‘theft’.

The Chinese government has insisted that the US has increased digital invasion campaigns in the country, exploiting server flaws to attack companies. Beijing has already stated that it has evidence that there was an invasion of China’s National Weather Service Center.

The incident comes against the backdrop of US-China disputes in cyberspace, where accusations of state operations are recurring. Cryptocurrency mining, an essential activity for the functioning of bitcoin, has become a strategic target as it generates billion-dollar values.

The US’s digital asset confiscation procedures, although supported by domestic laws, are often questioned by other countries. This case exemplifies how cryptocurrencies are at the intersection of national security, geopolitical disputes and transnational law enforcement.

Chen’s defense, who remains free, contests the US court’s accusations and has sought to track the path of the previously stolen bitcoins, now in the possession of the US government.