Bitcoin from Chinese Hacker Lubian 2020 has reached a value of 14.5 Billion USD

China's massive Bitcoin hack cover-up?

In 2020, a silent hack targeted a Bitcoin mining pool in China, believed to involve a large Bitcoin mining pool such as F2Pool or Huobi Pool. The hack stole around 117,000 BTC without much fanfare. Due to China’s strict cryptocurrency laws, initial details of the incident were kept under wraps. However, Arkham Intelligence recently revealed the event. A

group of hackers, possibly a cybercriminal organization or an insider, successfully penetrated the mining pool’s hot wallet management system around mid-June 2020, causing the hack. Later data showed that the attackers used a vulnerability in the wallet management software. This could be related to a faulty security update or a phishing attack targeting the mining pool’s employees.

At the time, Bitcoin was hovering around $9,400, and the stolen Bitcoins totaled 117,000 BTC, or $1.1 billion. This is considered one of the largest thefts in cryptocurrency history, as this large amount represented about 0.6% of the total Bitcoin supply at the time.

Initially, the mining pool attempted to conceal the incident; the internal report was only sent to Chinese authorities and was not made public. Since 2017, local authorities have imposed strict restrictions on cryptocurrencies and required secrecy to avoid disrupting the industry and protect the economic image. The attacker quickly transferred the total BTC through multiple intermediary wallets using coin mixing techniques such as CoinJoin to hide the trace. Finally, the attacker transferred the total BTC to an unknown cold wallet. By the time Arkham discovered it and published its current value in August 2025, the BTC had not changed in the past 5 years. Historically, 2020 has seen the peak of the Chinese mining industry, accounting for more than 65% of the global hashrate. However, it has also been a time when mines have faced an increase in cyberattacks that have jeopardized their security.

On the other hand, Arkham Intelligence details were recently revealed through on-chain analysis. The report from Arkham said that the stolen Bitcoins of around 117,000 BTC are currently worth $14.5 billion at the BTC price of around $123,900, raising concerns about the security of the mining industry and the potential value of BTC.

Risk of mass sell-off

The discovery of $14.5 billion worth of BTC has highlighted the security vulnerabilities in the mining industry, especially since mining was banned in China in 2021, forcing mining to move to Kazakhstan, the United States, and Canada. The event may encourage companies like Marathon Digital and Riot Platforms to invest more in cold wallet security and enhanced governance systems. The theft of Bitcoin does not affect the circulating supply because the stolen funds remain locked in cold wallets. However, at such a large scale, major exchanges like Coinbase or Binance can detect and block suspicious transactions, but downward pressure on prices could occur if the attacker or the current owner decides to sell.

The incident raises several issues. First, the attacker remains unknown, and investigators suspect it is linked to the North Korean Lazarus Group—who have carried out major hacks like Mt. Gox—or a domestic criminal organization.

Future attacks are encouraged by the massive $14.5 billion value, especially as mining technology becomes increasingly complex and relies on centralized management software. If the Chinese or US authorities intervene and seize these Bitcoins, it could undermine confidence in Bitcoin’s decentralization, causing controversy in the community. Finally, if news of the Bitcoin sale is leaked, affecting market sentiment, the volatility of Bitcoin’s price, which has increased by 1,200% since 2020.

Conclude

The hack, which saw 117,000 BTC stolen in silence, reflects the meteoric rise in BTC’s value over the past five years, from $9,400 to $123,900, and exposes the security risks of China’s mining industry during its heyday. While the event won’t immediately change the market, the possibility of BTC being moved or seized could send ripples of volatility. The mining industry needs to learn from its mistakes to improve security, while the Bitcoin community faces the challenge of balancing ownership and regulatory pressure.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.