China has accused the US government of conducting a 2020 cyberattack that resulted in the theft of more than $13 billion worth of Bitcoin. According to a report published over the weekend by China’s National Computer Virus Emergency Response Center (CVERC), Washington was behind the December 2020 hack that stole 127,272 Bitcoin from LuBian, one of the world’s largest cryptocurrency miners. CVERC stated the Bitcoin belonged to Chen Zhi, the Chinese-born Cambodian tycoon and chairman of the Prince Group, according to a report by Nikkei Asia.
The latest dispute over theft is linked to US seizure
The accusation, published on CVERC’s official WeChat account, argues that the theft was not the work of a typical criminal organisation. CVERC noted that following the 2020 hack, which occurred in the final days of the first Trump administration, the tokens remained in the attacker’s wallet for four years without being moved.“This is clearly not the behaviour of a typical hacker eager to cash out for profits, and more like a precise operation orchestrated by a national hacking organisation,” the CVERC report reads.The accusation directly relates to the US Department of Justice (DOJ) action taken in October. The DOJ indicted Chen Zhi on charges of wire fraud and money laundering, alleging he directed operations at forced labor scam centers across Cambodia under his business empire. At the same time, the DOJ announced the forfeiture of 127,271 Bitcoin, calling it the largest seizure of its kind in history for any country. Notably, the Federal prosecutors in Chen’s case have declined to disclose how they obtained control of the Bitcoin. Since the DOJ announcement, the price of the cryptocurrency has fallen by more than 10%.
Corporate Denial and Diplomatic Friction
The allegations come at a time when there are already diplomatic tensions between Beijing and Washington over digital assets, and according to the report, the new accusation adds a new layer of friction to US-China relations.Prince Group responded to the indictment and forfeiture in a statement Tuesday, issued via US law firm Boies Schiller Flexner. The company “categorically rejects” accusations of wrongdoing by Chen or the firm and called the forfeiture an “unlawful seizure of assets.” Chen’s current whereabouts remain unknown.