Quantum Computers Are Coming: Here’s How to Protect Your Bitcoin Before It’s Too Late

Quantum computing threatens to crack Bitcoin's encryption—and your crypto could be at risk. These defensive moves matter now.

The Looming Threat: Next-gen quantum processors may soon break SHA-256, exposing cold wallets and legacy transactions.

Action Plan: Migrate to quantum-resistant wallets, rotate keys, and ditch reused addresses. Exchanges? They'll be the last to upgrade—classic 'security theater.'

Bottom Line: The clock's ticking. Early adopters who ignored this in 2024 are now posting 'how I lost my seed phrase' sob stories on Reddit.

TLDR

• China accuses the U.S. of orchestrating a cyberattack to steal 127,426 Bitcoin worth over $13 billion.
• The Bitcoin was stolen from a Chinese mining pool called LuBian in December 2020.
• The U.S. Department of Justice seized 127,271 BTC in late 2025, linking it to criminal activities by a Cambodian group.
• China rejected the U.S. explanation, claiming the seizure was a move to legitimize stolen Bitcoin.
• The seizure increased U.S. Bitcoin reserves to 325,000 BTC, valued at around $36 billion.

A new dispute has emerged between China and the United States over 127,426 Bitcoin, valued at over $13 billion. China has accused the U.S. of orchestrating a cyberattack in 2020 that resulted in the theft of these Bitcoin from a Chinese mining pool, LuBian. The accusation has sparked a diplomatic conflict, intertwining cybersecurity, finance, and politics in one of the most intense controversies in the crypto market.

China Rejects U.S. Explanation for Bitcoin Theft

In December 2020, a hack targeted the LuBian mining pool in China, leading to the theft of 127,426 BTC. The stolen bitcoin was valued at $3.5 billion at the time, though no culprit was identified for years. Blockchain experts initially suggested that a technical flaw in the mining pool’s system, such as a “weak-key” vulnerability, could have allowed the theft.

🚨 JUST IN:

China just accused the U.S. of a $13B $BTC grab, claiming it was part of a cyber-espionage operation.

Crypto isn’t just financial anymore… it’s political. pic.twitter.com/QvueXFILhN

— Wise Advice (@wiseadvicesumit) November 11, 2025

Other experts speculated that an insider could have been involved. Despite these theories, the true cause of the hack remained unclear for a long time. In late 2025, the U.S. Department of Justice (DOJ) announced the seizure of 127,271 BTC, claiming it was linked to criminal activities by the Cambodia-based Huione group. The seizure was described as the largest Bitcoin confiscation in history, valued at over $13 billion.

The U.S. government, however, did not provide detailed evidence of the hack’s origin or the nature of the criminal activity behind the seizure. Officials argued that the confiscation of the Bitcoin was part of a broader effort to combat online scams. The U.S. explained that the coins were connected to a series of cybercrimes carried out by a criminal organization.

However, China swiftly rejected this explanation. The National Computer Virus Emergency Response Centre (CVERC) accused the U.S. government of being the real hacker. According to CVERC, the hack was part of a U.S.-led cyber operation, and the subsequent seizure was a MOVE to legitimize the stolen Bitcoin. The accusations suggest that the U.S. acted as a state-level hacker.

Bitcoin Seizure and U.S. Bitcoin Reserves

Following the seizure, the U.S. government’s Bitcoin holdings increased to 325,000 BTC, worth approximately $36 billion. U.S. officials stated that the move was aimed at protecting investors from online fraud. The seizure further raised concerns about the role of governments in controlling Bitcoin, which is traditionally seen as a decentralized currency.

The growing U.S. Bitcoin reserves have raised questions about the future of crypto regulations. As the U.S. strengthens its control over digital assets, global tensions surrounding Bitcoin’s use continue to rise. In China, the accusations against the U.S. have become a focal point in broader geopolitical discussions.

The ongoing dispute has already begun to affect the Bitcoin market. As tensions escalate between the U.S. and China, Bitcoin’s price has experienced a slight decline. Bitcoin is currently trading at $105,000, down by 0.72% in the last 24 hours. This market fluctuation is partly attributed to fears that the diplomatic standoff could influence crypto regulations and cross-border Bitcoin transfers.

The U.S. Bitcoin and ethereum exchange-traded funds (ETFs) saw a $755 million outflow this week. Analysts believe that these movements indicate growing caution among traders. However, they also suggest that the long-term impact could benefit Bitcoin’s status as a “digital gold.”