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127,426 BTC stolen from Chinese mining pool LuBian in 2020
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Now worth nearly $14.5 billion - possibly the largest theft by value
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Attack may have used a weak private key algorithm
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Stolen BTC has not moved since July 2024
Arkham Uncovers Years-Old Bitcoin Theft
Arkham Intelligence, a blockchain analysis firm, has uncovered a massive and previously unreported crypto theft. The firm claims that in December 2020, hackers stole 127,426 BTC from LuBian, a Chinese Bitcoin mining pool. At the time, the stolen BTC was worth about $3.5 billion. Today, it’s valued at nearly $14.5 billion, making it one of the largest crypto thefts ever by dollar value.
What Happened to LuBian?
LuBian appeared on the scene in 2020, quickly becoming one of the top six mining pools on the Bitcoin network. It advertised itself as a “safe, high-yield” platform. But by early 2021, LuBian suddenly disappeared. Speculation ranged from a government shutdown to a move into private operations.
Arkham’s new findings point to a different reason: a massive hack that wiped out most of LuBian’s reserves. The main attack occurred on December 28, 2020, followed by a smaller theft the next day involving BTC and USDT.
How the Hack May Have Happened
According to Arkham, the attacker may have exploited a vulnerability in the algorithm LuBian used to generate its private keys. The report suggests the keys were weak enough to allow brute-force attacks. Despite the theft, LuBian still holds about 11,886 BTC, worth roughly $1.35 billion.
The stolen funds have remained untouched since July 2024. LuBian even attempted to reach out to the attacker using encoded messages in Bitcoin transactions, offering a reward if the funds were returned. It’s unknown whether there was any response.
