LuBian Bitcoin Heist Revealed: $14.5B in BTC Stolen From Chinese Mining Pool

Blockchain intelligence firm Arkham has disclosed that 127,426 BTC, worth nearly $14.5 billion today, was quietly stolen from Chinese mining pool LuBian in late 2020. The heist, which had remained hidden from the public for almost four years, now ranks among the largest crypto thefts in history by current valuation.

In Brief

• Arkham Intelligence revealed that 127,426 BTC were stolen from Chinese mining pool LuBian in December 2020, making it one of the largest crypto thefts ever by value.
• The attacker may have exploited a flaw in LuBian’s private key generation algorithm, allowing for a brute-force breach.
• Despite the magnitude, the hack remained unknown until now. None of the stolen BTC has moved since July 2024, and LuBian has tried contacting the hacker via OP_RETURN messages.

Mysterious Disappearance Explained

LuBian emerged in April 2020, branding itself as “the safest high-yielding mining pool in the world.” Within months, it became the sixth-largest Bitcoin mining pool globally. But by February 2021, the platform vanished without warning. While many speculated that Chinese government pressure or an internal pivot had triggered the shutdown, Arkham’s findings point to a far more dramatic cause: a catastrophic hack. According to Arkham, LuBian was first compromised on December 28, 2020, when over 90% of its Bitcoin holdings were drained. The next day, an additional $6 million in BTC and USDT was stolen from a LuBian wallet on Bitcoin’s Omni layer. At the time, the entire haul was worth about $3.5 billion, still more than any other single theft to date.

How the Exploit May Have Happened

Arkham researchers believe the attacker exploited a vulnerability in the algorithm LuBian used to generate private keys, making them susceptible to brute-force attacks. The analytics platform stated:

"It appears that LuBian was using an algorithm to generate its private keys that was susceptible to brute-force attacks."

Despite the theft, LuBian managed to preserve 11,886 BTC, currently worth about $1.35 billion, which it still controls. What’s more surprising: the attacker has not moved any of the stolen Bitcoin since July 2024, suggesting either fear of being tracked or plans for a more covert liquidation strategy.

A Plea Through the Blockchain

LuBian reached out directly to the attacker via Bitcoin’s OP_RETURN field, a method that embeds small messages into blockchain transactions. In two messages, the company appealed:

"To the whitehat who is saving our asset, you can contact us… to discuss the return of asset and your reward."

This implies LuBian initially hoped the attacker may have been an ethical hacker willing to negotiate. So far, there’s been no public indication of any returned funds.

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Source: LuBian Bitcoin Heist Revealed by Arkham Intelligence

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Frequently Asked Questions (FAQ)

About the LuBian Bitcoin Heist

Q: What was the LuBian Bitcoin heist? A: The LuBian Bitcoin heist was a large-scale theft of cryptocurrency from the Chinese mining pool LuBian. In December 2020, approximately 127,426 BTC, valued at nearly $14.5 billion today, was stolen. Q: Who discovered the heist? A: The discovery was made by the blockchain intelligence firm Arkham. Q: When did the heist occur? A: The primary theft occurred on December 28, 2020, with an additional smaller theft on December 29, 2020. Q: How was the theft possible? A: Researchers believe the attacker exploited a vulnerability in LuBian's private key generation algorithm, which made it susceptible to brute-force attacks. Q: Has any of the stolen Bitcoin been moved? A: According to the information, none of the stolen BTC has been moved since July 2024. Q: Did LuBian attempt to contact the hacker? A: Yes, LuBian attempted to contact the hacker through OP_RETURN messages on the Bitcoin blockchain, offering a reward for the return of assets. Q: What is OP_RETURN? A: OP_RETURN is a field in Bitcoin transactions that allows for small amounts of arbitrary data to be embedded within the transaction. It's often used for simple messaging or data storage on the blockchain. Q: What was the value of the stolen Bitcoin at the time of the heist? A: At the time of the heist, the total haul was worth about $3.5 billion. Q: How much Bitcoin did LuBian manage to keep? A: LuBian managed to preserve 11,886 BTC, which is currently valued at approximately $1.35 billion.

Crypto Market AI's Take

This significant Bitcoin heist highlights the ongoing security challenges and risks within the cryptocurrency mining sector, especially in its earlier stages. The fact that such a large-scale theft remained undetected for nearly four years is a stark reminder of the importance of robust security protocols and transparent operations. For platforms and individuals involved in cryptocurrency, understanding potential vulnerabilities, such as flaws in private key generation, is crucial. Our platform, Crypto Market AI, focuses on providing AI-driven insights and tools to navigate the complexities of the crypto market, including security risks and market trends. We aim to offer users advanced analytics and strategies to mitigate such risks and make informed decisions.

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