China Alleges U.S. Behind Staggering Bitcoin Heist—Crypto Cold War Escalates

Beijing drops bombshell accusation: American operatives allegedly siphoned billions in BTC. The crypto-verse braces for fallout.

Geopolitical tension meets blockchain forensics

Chinese cybersecurity officials claim to have traced the digital breadcrumbs to U.S. servers—just as Treasury officials were spotted liquidating unusual crypto holdings. Coincidence? The Politburo says no.

Meanwhile, institutional investors shrug and keep stacking sats—because nothing fuels crypto adoption like old-fashioned international espionage. Who needs ETFs when you've got shadow wars playing out on-chain?

Bonus jab: At least the thieves didn't rug-pull—that honor remains reserved for DeFi founders.

A high-stakes international controversy has emerged involving allegations of a significant Bitcoin theft. China’s National Computer Virus Emergency Response Center (CVERC) accused the U.S. government of misappropriating $13 billion in bitcoin. The accusations stem from the assertion that the bitcoin in question was originally stolen from Chinese mining pool LuBian in 2020. These accusations have reignited debates about the involvement of state-level actors in cyber offenses.

How Did the Bitcoin Resurface?

The illicitly acquired 127,271 BTC remained motionless in the digital space for nearly four years. Then, in mid-2024, the cryptocurrency shifted to wallets reportedly under U.S. government control. Blockchain analysts spotted this movement and highlighted potential government involvement based on the timing and manner of the transfer. Such developments have propelled the allegations into the international spotlight, raising questions about state involvement in cyber dealings.

What Does the U.S. Say?

The U.S. Department of Justice (DOJ) firmly refutes the allegations, asserting the legitimacy of the bitcoin’s confiscation. According to an October indictment, the seizure was part of an operation against criminal activities linked to Chen Zhi, Chairman of Cambodia’s Prince Group. The DOJ states that these funds were seized as part of an ongoing investigation into alleged crypto fraud involving Chen. This points to the complexity of jurisdictional issues when different countries have competing claims over digital assets.

“The bitcoin seizure was lawfully executed as part of a broader operation targeting crypto-related crimes,” said the DOJ.

What are the Contradictions?

Reports by CVERC stand in stark contrast to those from the DOJ, sparking a complicated web of disputes. The Chinese agency holds the position that the evidence does not support DOJ’s claim that the bitcoins were from illicit sources. Meanwhile, blockchain security firm Elliptic expressed uncertainty about how the bitcoins settled in U.S. control, suggesting that there might be more layers to the story.

“It remains unclear who ‘stole’ the bitcoins or if a theft actually occurred,” stated a report by Elliptic.

Tensions have heightened with these allegations, challenging the boundaries of national accountability in cryptocurrency regulations. The disputes highlight discrepancies in international perspectives on cyber crimes, especially related to cryptocurrencies. As investigations continue, the emerging narratives underline the need for enhanced transnational cooperation in handling digital assets.

Comparing different accounts, the situation underscores the complexities of international digital asset management. While the truth behind the bitcoin’s journey remains elusive, the case emphasizes the necessity for clear international frameworks governing digital currencies. By adhering to transparent procedural norms, some future conflicts could potentially be avoided.