Beijing Accuses the United States of Orchestrating the Theft of $13 Billion in Bitcoin

SadaNews - The Chinese cybersecurity agency has accused the U.S. government of orchestrating the theft of Bitcoin worth nearly $13 billion in the latest attempt by China to attribute major cyberattacks to the United States.

The theft of 127,272 Bitcoin from the mining pool "LuBian" in December 2020 is considered one of the largest cryptocurrency heists in history.

The Chinese National Computer Virus Emergency Response Center stated that the attack "is likely a state-sponsored hacking operation led by the United States," noting that the quiet and deferred movements of the stolen Bitcoin align more with government behavior than traditional criminal behavior.

A Chinese Report Links the Theft to U.S. Seized Assets

A report published last week connected the stolen Bitcoin from "LuBian," which was once one of the largest mining operations in the world, to assets seized by the U.S. government, which Washington claimed were linked to Chen Qi, the head of the Cambodian "Prince Group".

The United States had charged Chen Qi in October with conspiracy to commit electronic fraud and running a money laundering scheme, but it declined to disclose when or how it seized the Bitcoin.

The report noted, "The U.S. government might have already used hacking techniques since 2020 to steal 127,000 Bitcoin that were owned by Chen Qi," describing the incident as a "traditional scam run by state-level hackers".

Federal prosecutors in Chen's case declined to comment on how they obtained control over the Bitcoin, following a civil forfeiture complaint filed by the Department of Justice that involved seizing 127,271 Bitcoin, marking the largest seizure of its kind in U.S. history.

Beijing Intensifies Accusations Against Washington

In recent times, the Chinese government has increased its accusations against Washington for launching cyberattacks. Earlier this year, Beijing claimed that the United States exploited a vulnerability in "Microsoft Exchange" servers to attack Chinese companies, and last month it stated that it had "irrefutable evidence" of a U.S. cyberattack against the "National Time Service Center" in China.

However, China's reports, unlike U.S. accusations, often lack the precise criminal details that typically accompany Washington's charges against its adversaries.

Chen Qi's Legal Defense

Chen's lawyer, Matthew L. Schwartz, submitted a letter to an American court this week requesting more time to trace the stolen Bitcoin from "LuBian". In the letter, Schwartz described the U.S. government's accusations as "severely misleading".

Schwartz, who is the head of the firm "Boies Schiller Flexner" and legal advisor to Chen and the "Prince Group", stated in a statement to "Bloomberg": "As we outlined in our court memo, we are working closely with cryptocurrency experts to trace the Bitcoin that the government seized over a year ago, which was stolen in 2020".

Representatives from the U.S. Department of Justice and the Chinese embassy in Washington did not respond to requests for comment.