Chinese Cybersecurity Watchdog Alleges US Stole $13.2B in Bitcoin Five Years Ago

The Chinese state cybersecurity organization CVERC has alleged that the U.S. government unlawfully seized approximately 127,271 BTC, worth around $13.2 billion, from a 2020 mining pool hack. This stash was supposedly linked to Cambodian businessman Chen Zhi, who faces allegations of running large-scale crypto fraud operations. CVERC's report challenges the U.S. Department of Justice's claims regarding the seizure, asserting that the Bitcoin was not derived from criminal activities but rather from the hack of the LuBian mining pool on December 29, 2020. At the time of the theft, the stolen Bitcoin was valued at roughly $3.5 billion. Chen's team had reportedly attempted to negotiate the return of the funds in subsequent years. TRM Labs confirmed that the seized Bitcoin originated from wallets controlled by Chen as of 2020. The report raises questions about the legitimacy of the U.S.'s claims and suggests potential misconduct in the handling of the seized cryptocurrency.

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