On-chain analytics firm Arkham Intelligence has revealed what appears to be the largest cryptocurrency theft in history, involving stolen Bitcoin that was worth $3.5 billion at the time of the hack but has since ballooned to $14 billion in current value. This massive heist significantly overshadows the $1.5 billion Bybit incident that occurred earlier this year.
Massive Bitcoin Theft Hits Chinese Mining Giant
According to Arkham’s investigation, the target was LuBian, a major Chinese mining operation that maintained facilities across China and Iran. The company disclosed that approximately 127,426 BTC was allegedly stolen from LuBian’s wallets in December 2020, when the coins carried a value of $3.5 billion. With Bitcoin’s dramatic price appreciation over the past four years, those same coins now represent approximately $14.5 billion in value.
This is Lazarus
They just stole $1.46 billion from Bybit
And they didn’t break the code — they broke the people
Here’s untold story of how they did it (and why no one is truly safe) 👇 pic.twitter.com/ajdFNJglGb
— Pix🔎 (@PixOnChain) February 21, 2025
What makes this case particularly unusual is the complete silence from both parties involved. Neither LuBian nor the suspected hacker has made any public statements regarding the theft since it allegedly occurred in 2020. At that time, LuBian ranked among the world’s most powerful mining pools, commanding nearly 6% of Bitcoin’s total network hash rate as of May 2020.
The breach apparently began on December 28, 2020, when hackers managed to extract more than 90% of LuBian’s Bitcoin holdings. The following day, December 29, the attackers continued their operation by taking roughly $6 million worth of Bitcoin and USDT from a LuBian address operating on Bitcoin’s Omni layer. By December 31, LuBian had moved its remaining assets to what appeared to be recovery wallets.
Security Vulnerabilities and Recovery Efforts
Arkham’s analysis suggests that LuBian’s downfall stemmed from fundamental security weaknesses in their wallet infrastructure. The mining pool reportedly used an algorithm for generating private keys that proved vulnerable to brute-force attacks, which likely enabled the hackers to gain access to the funds.
Following the theft, LuBian made documented attempts to communicate with the hackers through blockchain messages. The company sent OP_RETURN messages pleading for the return of their stolen funds, spending 1.4 BTC across 1,516 separate transactions to broadcast these appeals. These messages serve as evidence that the hack was genuine rather than a false flag operation by someone who had simply cracked the private keys through computational methods.
Despite the massive losses, LuBian reportedly still maintains control of 11,886 BTC, currently valued at approximately $1.35 billion. Meanwhile, the suspected hacker continues to hold the stolen Bitcoin, with the most recent wallet consolidation activity detected in July 2024. Thanks to Bitcoin’s remarkable price growth, this individual now ranks as the 13th largest BTC holder according to Arkham’s data, surpassing even the notorious Mt. Gox hacker in terms of holdings.
Broader Crypto Security Implications
The revelation of this previously unknown theft highlights ongoing security challenges within the cryptocurrency mining sector and reinforces concerns about wallet infrastructure vulnerabilities. Market observers are likely to view this news with measured concern, though the four-year time gap since the incident may limit immediate trading reactions.
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