The world of cryptocurrency faced a seismic shift with the unprecedented theft in December 2020, when the Chinese Bitcoin mining pool LuBian was compromised for an astounding 127,426 BTC.
Originally valued at around $3.5 billion at the time of the heist, the worth of these stolen bitcoins has skyrocketed, hitting approximately $14.5 billion as per the latest insights from blockchain analysis firm Arkham Intelligence. This staggering increase highlights the volatile nature of cryptocurrency valuations.
LuBian was once a key player, holding a commanding 6% share of the Bitcoin network’s hash power. However, the organization disappeared from the limelight in early 2021. While regulatory scrutiny was blamed for the shutdown, recent findings suggest it was due to a catastrophic undisclosed cyber breach.
A Critical Weakness in Security
The attackers took advantage of a serious flaw in the private key generation process, allowing them to pilfer over 90% of LuBian’s Bitcoin in a single well-coordinated strike on December 28, 2020. Just two days later, an additional $6 million in BTC and USDT was extracted from a different wallet connected to LuBian, demonstrating the breadth of the breach.
In a harrowing bid to reclaim their losses, LuBian attempted to reach out to the perpetrator by sending over 1,500 Bitcoin transactions embedded with OP_RETURN messages, asking for the stolen funds to be returned. Unfortunately, these pleas were met with silence.
To this day, the hacker’s wallet remains largely dormant, with its last major transaction occurring in July 2024. Remarkably, as noted by Arkham, this wallet is now ranked as the 13th largest Bitcoin wallet worldwide, surpassing even the notorious Mt. Gox wallet.
Implications for Crypto Security and the Future
This colossal theft not only becomes the largest case of crypto theft on record but also illuminates significant weaknesses within existing blockchain security frameworks and private key management systems.
In the ongoing saga of cryptocurrency theft, an impressive $3.1 billion has already been lost in the first half of 2025, emphasizing the need for heightened security measures across mining pools and exchanges.
The story of LuBian serves as a cautionary tale in the realm of cryptocurrency, underlining the critical importance of robust security systems. As this case continues to reverberate through the industry, it remains a stark warning: inadequate security can result in billion-dollar losses, leaving a lasting impact for years to come.
Cover image from ChatGPT, BTCUSD chart from Tradingview
