Crypto assets stolen in the 2020 Lubiann Mining hack now sit in US government wallets — triggering a geopolitical clash over ownership, cyber sovereignty and global crypto governance.
New Delhi / Beijing / Washington – A storm is brewing in the global crypto ecosystem after China accused the United States of unlawful seizure of 127,271 bitcoins, currently valued between ₹1.07 lakh crore and ₹1.23 lakh crore. According to Beijing, these bitcoins were stolen during the 2020 Lubiann Mining Pool cyberattack and have now been traced to wallets controlled by the US government.
What began as a major crypto theft in 2020 has now escalated into a high-stakes confrontation involving the world’s two largest powers — raising questions about cyber sovereignty, legal jurisdiction, digital property rights, and the future of global crypto regulation.
The Origin of the Crisis — The 2020 Lubiann Mining Pool Hack
Lubiann Mining Pool, a prominent entity in China’s crypto-mining industry, was hit by a sophisticated cyberattack in 2020. Hackers reportedly exploited vulnerabilities in a 32-bit private key system, managing to siphon off a staggering 127,271 BTC. At that time, the stolen amount was valued at roughly ₹8,000 crore.
Desperate, the company even issued a public message on the blockchain, offering a reward for the safe return of the stolen coins. But, as is common in such breaches, the bitcoins vanished across a web of scattered wallet addresses — and remained dormant for nearly four years.
2024–2025: On-chain Analysts Spot the Bitcoins in US-Controlled Wallets
After years of inactivity, global blockchain analytics firms detected unexpected movement in late 2024. The dormant bitcoins had resurfaced, and were gradually transferred to wallets associated with US federal agencies. This discovery triggered immediate outrage in China.
The Cybersecurity and Blockchain Regulation Commission (CBRC) issued a sharp statement accusing the United States of:
- Seizing the stolen bitcoins under the guise of “investigation”
- Violating China’s cyber and digital sovereignty
- Exercising illegal control over the assets of a Chinese company
- Conducting a “digital strike” rather than an impartial probe
China asserts that while America may have been tracking the hackers, it had no jurisdictional authority to detain or retain assets belonging to a Chinese corporate entity.
US Responds: This Is a Legal Seizure, Not Theft
The United States has dismissed the allegations as baseless.
According to American federal investigators:
- They tracked the hackers responsible for the 2020 theft
- The wallets containing the bitcoins were linked to criminal activity
- US law allows the government to seize digital assets connected to financial crimes
- The seizure aligns with global protocols on international cybercrime enforcement
Washington maintains that the action is consistent with legal norms, not an act of geopolitical aggression.
But China views the move as yet another example of US digital dominance, calling it “unilateral appropriation of foreign digital property”.
The Big Question — Who Is the Real Owner of These Bitcoins?
This dispute has opened a profound and complex debate on digital ownership.
The blockchain principle says:
“Not your keys, not your coins.”
But in this scenario, nothing is straightforward:
- The bitcoins were stolen
- The hackers had the private keys
- Lubiann Mining Pool claims the assets belong to them
- The US says it seized the assets legally
- China says the US has confiscated corporate property without jurisdiction
Thus, the conflict represents an intersection of:
- Technical ownership
- Legal ownership
- Geopolitical control
- Cyber power dynamics
Global Crypto Experts Warn of Three Emerging Risks
1. Technical Risk
If private keys are weak or exposed, digital assets can disappear instantly — no matter how large the amount.
2. Governmental Overreach
The case shows that sovereign governments can seize crypto assets across borders, raising concerns for global investors.
3. Legal Ambiguity
With no global regulatory framework or international crypto court, disputes may escalate into diplomatic or geopolitical tensions.
Investor Takeaways — What This Means for You
- Store private keys securely, preferably offline
- Avoid leaving large balances on exchanges
- Track regulatory actions and cross-border crypto policies
- Evaluate political and legal risks before investing
The crypto market is no longer just volatile — it is now deeply entangled with state power, national security and international law.
Conclusion — Crypto Has Entered the Era of Geopolitics
The US seizure of 127,271 bitcoins is more than a criminal investigation — it is a turning point in digital geopolitics.
It signals that crypto assets are no longer merely a technological innovation or investment vehicle. They are becoming instruments of:
- Statecraft
- Cyber warfare
- Economic influence
- Global power equations
For investors and policymakers alike, the message is clear: The risks of crypto now extend far beyond markets — into the realm of international politics and digital sovereignty.
