A nearly half-decade-old bitcoin heist has come to light, as Arkham Intelligence reveals that 127,426 BTC—worth a staggering $3.5 billion at the time—was stealthily siphoned from the LuBian Mining Pool in December 2020. The unnoticed breach, which Arkham says could be the largest bitcoin theft ever recorded, remained under wraps until their investigation surfaced the details just days ago.
The Great Bitcoin Caper
Arkham’s deep dive into the blockchain uncovered that on December 28, 2020, more than 90% of LuBian’s bitcoin stash disappeared overnight. In a curious twist, two days later, another heist—this time involving $6 million worth of BTC and USDT—occurred, linked to LuBian’s operations on Bitcoin’s Omni layer. By the end of that fateful year, the mining pool managed to salvage 11,886 BTC, stashing it away in recovery wallets.
What makes this revelation particularly intriguing is the method of communication used by LuBian post-theft. The pool sent OP_RETURN messages—Bitcoin transactions that include embedded data—to the hacker, spending 1.4 BTC across 1,500 transactions in a desperate attempt to appeal for the return of the stolen assets. This digital breadcrumb trail adds an unusual layer of authenticity to claims of rightful ownership.
An Overlooked Vulnerability
Arkham’s report suggests the breach may have been facilitated by a faulty private key generation algorithm, leaving LuBian defenseless against brute-force attacks. This vulnerability echoes concerns raised in our analysis of Bitcoin’s susceptibility to quantum attacks, where nearly a third of the supply is at risk due to similar security oversights. Despite the enormity of the theft, the purloined bitcoins have mostly remained untouched, with the most significant movement being a wallet consolidation in July 2024. This idle behavior raises eyebrows in the crypto world, prompting questions about the hacker’s long-term intentions.
The price boom of bitcoin since the theft means the stolen assets are now valued at approximately $14.5 billion. This makes the LuBian hacker’s wallet the 13th largest BTC holder globally, surpassing even the infamous Mt. Gox breach in terms of nominal value. The situation leaves crypto enthusiasts pondering the potential market impact if these coins were ever unleashed.
A Silent Standoff
As of this report, there’s no word from either LuBian or the hacker about the incident, nor any indication of identity disclosures. Arkham has made wallet trackers available for both parties, yet the mystery of who orchestrated this grand theft remains unsolved. “This case underscores the need for heightened security measures in the crypto space,” said blockchain analyst Sofia Lin. “We can’t afford to have such monumental breaches slipping under the radar.” This sentiment is echoed in our coverage of the CoinDCX employee-linked $44 million crypto theft, highlighting the persistent threat of insider vulnerabilities.
The LuBian affair has rekindled discussions around security vulnerabilities and the opaque nature of the cryptocurrency realm. It serves as a stark reminder of the risks inherent in digital asset management, even among prominent players. In a world where transparency is both a virtue and a vulnerability, the LuBian theft may well be a lesson etched in the annals of crypto history.
As the crypto community digests these revelations, the broader implications are yet to unfold. Will this prompt a shift in how mining pools secure their digital treasures? Can we expect a ripple effect on bitcoin’s market dynamics? While the answers remain elusive, the LuBian saga is far from over. With all eyes on the dormant billions, the world watches, waits, and wonders.
Source
This article is based on: Arkham Says $3.5B LuBian Bitcoin Theft Went Undetected for Nearly Five Years
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
