On-chain analytics firm Arkham Intelligence has revealed what appears to be the largest cryptocurrency theft in history, involving 127,426 Bitcoin stolen from Chinese mining pool LuBian in December 2020. The stolen cryptocurrency was valued at approximately $3.5 billion at the time of the hack but has since ballooned to roughly $14.5 billion based on current Bitcoin prices.
Details of the LuBian Mining Pool Attack
According to Arkham’s investigation, LuBian operated as a major Chinese mining pool with facilities spanning China and Iran. At its peak in May 2020, the company controlled nearly 6% of Bitcoin’s total network hash rate, making it one of the world’s largest mining operations.
The hack began on December 28, 2020, when an unknown attacker managed to steal over 90% of LuBian’s Bitcoin holdings. The following day, December 29, the same hacker extracted an additional $6 million worth of Bitcoin and USDT from a LuBian address operating on the Bitcoin Omni layer. By December 31, LuBian had moved its remaining funds to recovery wallets in an apparent damage control measure.
BREAKING: ARKHAM UNCOVERS $3.5B HEIST – THE LARGEST EVER
LuBian was a Chinese mining pool with facilities in China & Iran. Based on analysis of on-chain data, it appears that 127,426 BTC was stolen from LuBian in December 2020, worth $3.5 billion at the time and now worth… pic.twitter.com/PnIOKgMt0i
— Arkham (@arkham) August 2, 2025
This massive theft dwarfs other notable cryptocurrency heists, including the Bybit incident from February 2024 that resulted in $1.5 billion in losses. However, the Bybit attack differed significantly in its execution, as hackers used social engineering tactics to steal over 400,000 ETH from cold storage wallets, bypassing multisig security measures.
Recovery Efforts and Technical Details
Arkham’s analysis reveals that LuBian attempted to communicate directly with the hacker through OP_RETURN messages embedded in Bitcoin transactions. The mining pool spent 1.4 Bitcoin across 1,516 separate transactions to send these recovery requests, asking the attacker to return the stolen funds.
The hack appears to have exploited a fundamental security flaw in LuBian’s key generation system. Evidence suggests the mining pool used an algorithm for creating private keys that was vulnerable to brute-force attacks, allowing the hacker to systematically crack their wallet security.
Currently, LuBian retains control of approximately 11,886 Bitcoin, worth around $1.35 billion at today’s prices. Meanwhile, the hacker continues to hold the stolen cryptocurrency, with their last known wallet consolidation occurring in July 2024. The massive Bitcoin holdings have elevated the unknown attacker to the 13th position among all Bitcoin holders, surpassing even the infamous Mt. Gox hacker in total holdings.
Market Sentiment Analysis
The revelation of this historic cryptocurrency theft may generate mixed reactions in the market, though the incident’s age and lack of immediate selling pressure could limit significant price volatility. Given that neither the hack nor potential liquidation poses an immediate threat to current market conditions, investor sentiment is likely to remain relatively stable.
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