The Largest-Ever Bitcoin Hack: A $14.5 Billion Heist Revealed

Intellectual property agency Arkham Intelligence has made a groundbreaking discovery that sheds new light on the cryptocurrency world. In 2020, the Chinese mining pool LuBian was hit by an unprecedented heist, resulting in the theft of 127,426 Bitcoins worth $3.5 billion at the time. However, considering the value of Bitcoin's explosive growth since then, the total value of the stolen coins now stands at a staggering $14.5 billion.

LuBian was once the 6th-largest mining pool on the Bitcoin network, boasting an impressive 6% control over the network's total hash-rate capacity by May 2020. The pool was touted as "the safest high-yielding mining pool in the world" before its sudden disappearance in 2021.

The heist is believed to have occurred in two stages, with the first hack taking place on December 28th, 2020, and constituting over 90% of LuBian's Bitcoin supply. A day later, another attack was executed, netting an additional $6 million worth of Bitcoin and USDT. The hacker then moved what little coins they had left into recovery wallets by the end of December.

According to Arkham Intelligence, the attack was carried out using brute-force attacks on LuBian's private key generation capabilities, which were reportedly utilizing a weak 32-bit entropy. This allowed hackers with the processing power of a gaming computer and just a few days' worth of time to breach the system.

Today, LuBian is still holding onto its remaining 11,886 Bitcoins, while the hacker has done the same and remains one of the top 13 largest Bitcoin holders worldwide. The last known movement of the hacker's wallet was a consolidation in July 2024. The LuBian hack now stands as the largest crypto hack in history, surpassing even the infamous Mt. Gox hacks from the early 2010s.

Notably, the second Mt. Gox hack in 2014 involved significantly more stolen Bitcoins, with approximately 850,000 coins being stolen at the time. However, considering the much lower value of Bitcoin back then, LuBian's $3.5 billion heist now stands as a far more profitable exploit.

This significant discovery highlights the ongoing threats facing the cryptocurrency world and emphasizes the importance of robust security measures in protecting sensitive assets. As the crypto landscape continues to evolve, it is essential for investors and users alike to remain vigilant and stay informed about emerging trends and potential vulnerabilities.