China Accuses U.S. of Stealing 127K BTC in High-Profile Crypto Hack

China’s National Computer Virus Emergency Response Center (CVERC) has accused the U.S. government of seizing 127,000 stolen bitcoins, valued at approximately $13 billion, from a hack that originated in 2020 targeting a Chinese mining pool. The report alleges the hack was executed by a state-level hacking organization and posits that the U.S. seizure was part of a prolonged operation involving the same attackers. The U.S. government refutes this claim, asserting that the seizure was a legitimate law enforcement tactic focused on criminal proceeds. The controversy traces back to a theft linked to Chen Zhi, associated with a large crypto fraud case. Following the hack, the stolen bitcoins remained dormant for several years until mid-2024, when they were transferred to new wallets, which were later identified as owned by the U.S. government through blockchain analysis. CVERC challenges the narrative of criminality surrounding the funds, suggesting that the seizure may have been orchestrated by the original hackers. The situation continues to escalate tensions between China and the United States, particularly amid ongoing cybersecurity disputes.

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