The United States government is poised to potentially seize an additional $2 billion worth of Bitcoin linked to the now-defunct LuBian mining pool, building upon its recent historic crypto seizure announcement. Recent findings from blockchain investigator Sani revealed that nearly 16,237 BTC, currently valued at approximately $1.8 billion, are actively being moved across addresses associated with LuBian.
The Bitcoin movements can be traced to several wallets:
- bc1qvrwzs8unvu35kcred2z5ujjef36s5jgf3y6tp8: 13,107 BTC
- bc1q42ltpxsc6s8fne0jz474tvuvyq2sqw26ud80xy: 2,129 BTC
- bc1q4c9q0nva573jgs7vxu9hf0qyfqqtzy8awn77s0: 1,000 BTC
Notably, these wallets were not included among the 25 addresses outlined in the US government’s forfeiture filings, which detail roughly 127,000 BTC that authorities are seeking to seize. This discrepancy does not imply any oversight by federal agents. Some addresses may be sealed under court order, while others could be involved in a laundering network that obscures their ownership. The ongoing movements highlight that investigators have yet to comprehensively map out the control structure of the network involved.
If the US government successfully recovers both the additional 16,237 BTC and the already sought 127,000 BTC, its Bitcoin holdings would balloon to around 343,000 BTC, accounting for approximately 1.6% of the total Bitcoin supply. This would solidify the US government’s position as the largest nation-state holder of Bitcoin, trailing only behind Michael Saylor’s now rebranded Strategy, which boasts a corporate treasury of about 640,000 BTC, representing over 3% of the total supply.
Additionally, the LuBian case serves as a crucial test for the Strategic Bitcoin Reserve (SBR), a program initiated under former President Donald Trump’s executive order in March 2025 aimed at managing seized digital assets. Senator Cynthia Lummis emphasized that the seized Bitcoin underlines the urgent need for Congress to establish clear legislation concerning digital asset market structures. Lummis pointed out that such legislative clarity would enable law enforcement to act decisively against illicit activities while fostering innovation. She remarked, “Codifying how seized Bitcoin is stored, returned to victims, and safeguarded for future generations. Turning criminal proceeds into assets that strengthen America’s Strategic Bitcoin Reserve shows how sound policy can turn wrongdoing into lasting national value.”
LuBian had previously ranked among the top six Bitcoin miners globally, commanding about 6% of the total hash power through its operations in China and Iran. The firm encountered a catastrophic collapse in late 2020 due to a vulnerability in its key-generation algorithm, leading to the theft of 127,426 BTC, which at the time was valued at approximately $3.5 billion. This significant theft was first reported by Arkham Intelligence in August 2025.
In an effort to recover its funds, LuBian desperately pleaded with the hacker through numerous on-chain messages, even offering a reward for the return of the stolen coins. Analysis firm Elliptic later revealed that LuBian had spent over $40,000 on these embedded messages before effectively disappearing from the network in early 2021.
On October 14, US authorities unveiled an indictment that connected the stolen assets to a fraud network associated with the Prince Group, a Cambodian conglomerate led by Chen Zhi. Investigators allege that Chen’s associates channeled proceeds from large-scale online investment scams, known as “pig-butchering” scams, into crypto-mining operations, including LuBian.
