Intelligence Agents Uncover Hidden 2020 Bitcoin Heist from Defunct Chinese Mining Pool LuBian
In a groundbreaking investigation, intelligence agency Arkham Intelligence has uncovered a shocking 2020 Bitcoin theft from the now-defunct Chinese mining pool LuBian. The breach, which occurred in December 2020, resulted in the siphoning off of an astonishing 127,426 Bitcoins, worth $3.5 billion at the time and approximately $14.5 billion today.
LuBian was once a prominent player on the global Bitcoin mining stage, briefly ranking sixth worldwide and controlling around six percent of the total hash rate in mid-2020. However, following the breach, the pool vanished from public view, leaving many to wonder about its fate. Arkham Intelligence's expert analysis has shed light on the circumstances surrounding this significant event.
The main breach is believed to have occurred on December 28, 2020, when a staggering 90 percent of LuBian's reserves disappeared in a single transaction. This was followed by another attack just a day later, which drained an additional $6 million in Bitcoins and USDT from a LuBian address on the Bitcoin Omni layer.
LuBian's swift response to the breach is particularly noteworthy. Despite the severity of the incident, the pool's operators appeared to be in communication with the attackers. The agency observed over 1,500 OP_RETURN messages, each containing pleas for the attacker to return the stolen funds. Notably, these messages were addressed directly to the hacker, suggesting that they came from the legitimate operators rather than an opportunistic impersonator.
Despite the efforts of both parties to recover the lost coins, LuBian's remaining 11,886 Bitcoins (valued at approximately $1.35 billion) are still in their custody. The hacker, on the other hand, has only recently consolidated their funds, with the last reported movement occurring in July 2024.
Arkham Intelligence's analysis suggests that a weak key-generation routine was the probable entry point for the attackers. LuBian allegedly relied on just 32 bits of entropy, an extremely low level that can be brute-forced using gaming hardware given enough time.
The significance of this discovery cannot be overstated. The stolen stash would place the attacker firmly in the top 13 on Arkham's ranking of the largest known Bitcoin holders, narrowly surpassing the infamous Mt. Gox attacker.
A Timeline of Events
- December 28, 2020: Main breach occurs, with 90% of LuBian's reserves vanished in a single transaction.
- December 29, 2020: Attackers drain an additional $6 million in Bitcoins and USDT from a LuBian address on the Bitcoin Omni layer.
- December 31, 2020: LuBian hastily moves their remaining coins into recovery wallets.
- July 2024: Hacker consolidates funds, marking the last reported movement of the stolen stash.
The Fallout of the Breach
The breach has left a lasting impact on the Bitcoin community. The swift response from LuBian's operators and their efforts to recover the lost coins serve as a reminder of the importance of robust security measures in the face of potential threats.
As the largest known Bitcoin holders continue to be identified, it is clear that these high-profile attacks will have far-reaching consequences for the cryptocurrency market. The implications of this discovery are still being felt, and it remains to be seen how this event will shape the future of Bitcoin security and governance.