Tensions between China and the United States have taken a sharp turn into the realm of cryptocurrency, as Beijing has publicly accused Washington of allegedly stealing a staggering 127,272 Bitcoin. The Chinese National Computer Virus Emergency Response Center (CVERC) released a technical report claiming that the U.S. may have hacked and withdrawn the BTC linked to the founder of the Prince Group, a mysterious entity long associated with digital finance.
The origins of the controversy trace back to December 29, 2020, when the LuBian mining pool, one of China’s significant cryptocurrency hubs, suffered a major security breach. During the incident, hackers managed to steal 127,272 BTC, an amount valued in the billions of dollars at the time. For years, the whereabouts of these funds remained unknown, raising concerns over both the security of Chinese crypto infrastructure and the fate of these stolen digital assets.
Fast forward to June 2024, a sudden and unexpected movement of these tokens caught the attention of blockchain analysts. The stolen BTC were transferred to wallets that were flagged by blockchain intelligence firm Arkham as potentially belonging to the U.S. government. According to CVERC, this transfer suggests direct involvement of U.S. authorities in the acquisition of the stolen funds, prompting accusations of state-level cyber theft.
The controversy reached a new height on October 14, 2025, when the U.S. Department of Justice announced it had seized 127,272 BTC, claiming the assets were tied to fraudulent activities conducted by the Prince Group. U.S. officials framed the seizure as a law enforcement action against criminal activity, while Chinese authorities insist the BTC were unlawfully taken from Chinese hands.
Global reactions have been swift, with analysts warning that this dispute could escalate tensions in the already fraught U.S.-China relationship. The incident highlights the growing role of cryptocurrencies in international politics and law enforcement, where billions of dollars of digital assets can become entangled in geopolitical rivalries.
Legal experts note that this case could set a precedent for how governments interact with cryptocurrency holdings linked to cross-border cybercrime. Meanwhile, blockchain watchers are closely monitoring further wallet movements and potential claims from international authorities, as both nations stake their claims over this highly valuable digital treasure.
As the situation unfolds, the world is witnessing a rare intersection of technology, finance, and international diplomacy, raising questions about the future of digital asset governance and the boundaries of state power in cyberspace.
Source: Global Times
