China has raised serious allegations against the United States, claiming that the U.S. seized approximately $13 billion worth of Bitcoin (BTC) connected to a cyberattack that took place in 2020. This escalation highlights the growing tensions between the two nations regarding digital assets.
The accusations originate from China’s National Computer Virus Emergency Response Center (CVERC), which asserts that the U.S. Department of Justice seized around 127,000 Bitcoin that had been stolen from the LuBian mining pool during a cyberattack in 2020. The agency characterized this incident as a “state-backed crypto heist” executed by a “state-level hacking organization.”
In a related report by the Global Times, a state-run newspaper, CVERC traced the Bitcoin back to Chen Zhi, the chairman of Cambodia’s Prince Group, who is reportedly facing indictment in the U.S. for a significant fraud scheme. CVERC suggests that the American seizure of the assets may form part of a broader, coordinated hacking effort.
Interestingly, until mid-2024, the stolen Bitcoin remained dormant, but a blockchain analysis firm, Arkham Intelligence, identified transfers linked to the U.S. government during that period. This development has prompted CVERC to challenge Washington’s narrative, which claims that the seizure was conducted according to established legal procedures aimed at combating criminal activities.
U.S. officials have dismissed China’s claims as unfounded, reiterating that the seizure was lawful and targeted illicit funds. While the Department of Justice and the Treasury Department have yet to publicly address the specific allegations, the exchange has contributed to ongoing digital asset tensions between Washington and Beijing.
A regional cybersecurity expert remarked that this incident marks a pivotal moment, as it is the first instance where China has directly charged the U.S. with cyber theft involving cryptocurrency. This development signifies a worrying escalation in the discourse surrounding digital sovereignty.
The confrontation adds further strain to already tense U.S.-China relations, which have been marked by disputes over cryptocurrency regulation, data espionage, and digital currency policies. While Beijing continues to impose strict restrictions on domestic cryptocurrency trading and expands its digital yuan pilot, the U.S. has stepped up enforcement actions against global crypto crime.
On the market front, Bitcoin remains within a constrained trading range as investors assess the geopolitical developments. Technical indicators suggest that Bitcoin may be facing a bearish trend, with resistance identified near $114,400. Support levels are positioned between $103,000 and $101,500, which have proven resilient over several tests. A shift above $111,000 could trigger bullish momentum, while a drop below $101,500 could risk further declines toward $97,500.
As the controversy unfolds, industry watchers are keenly observing how this situation will impact the broader cryptocurrency market and U.S.-China relations.
