Arkham’s analysis shows LuBian lost 127,426 BTC in 2020, making it the largest known crypto theft in Bitcoin’s history.
Hackers exploited a weak key generation algorithm, gaining access to LuBian’s wallets in one attack that stole over 90% of holdings.
LuBian sent 1.4 BTC in 1,516 messages to hacker addresses, asking for funds' return, yet never publicly disclosed the five-year-old breach.
In a shocking revelation, blockchain analytics firm Arkham Intelligence has uncovered a massive Bitcoin theft from LuBian. The Chinese mining pool lost 127,426 BTC—worth $3.5 billion in 2020—which remained undetected for nearly five years. The stolen coins are now worth $14.5 billion, making this the largest Bitcoin theft in history.
Largest Bitcoin Theft in History
Arkham’s findings confirm this as the biggest known heist in crypto. The stolen BTC, once valued at $3.5 billion, is now worth $14.5 billion due to Bitcoin's surge. The hacker now ranks as the 13th-largest holder on Arkham's leaderboard, overtaking the Mt. Gox hacker.
LuBian was a major mining pool in 2020, contributing nearly 6% of Bitcoin’s total hash rate. On December 28th, 2020, hackers drained more than 90% of LuBian’s BTC in a single strike. Neither LuBian nor the hacker have ever publicly acknowledged the breach, fueling more mystery.
Vulnerable Algorithm May Be the Entry Point
Arkham's analysis suggests the breach likely stemmed from weak key generation algorithms. LuBian reportedly used a flawed method to create private keys, leaving them open to brute-force attacks. The hacker may have exploited this vulnerability to seize full control of wallet access.
This points to severe operational negligence. A mining pool with billions in assets must implement cutting-edge cryptographic security. Besides, relying on outdated methods risks exposing funds to skilled attackers with advanced tools.
OP_RETURN Messages Reveal Desperate Pleas
Following the attack, LuBian attempted to reach the hacker by embedding messages in OP_RETURN fields on the Bitcoin blockchain. They spent 1.4 BTC across 1,516 transactions, asking for the return of their stolen funds. This on-chain action implies a direct appeal from the actual victim.
Interestingly, there’s been no indication the hacker replied. The use of OP_RETURN also confirms these were not spoofed by third parties. Moreover, the act of reaching out underscores LuBian’s desperation and the depth of the damage.
Remaining Funds and Ongoing Silence
Despite the breach, LuBian still holds 11,886 BTC, now worth over $1.35 billion. These coins have remained untouched, further suggesting the mining pool is operational but extremely silent. The lack of any public response or report is alarming.
There is no known investigation or legal follow-up from Chinese authorities or global regulators. This raises concerns over how large crypto entities handle massive losses. Moreover, it highlights the importance of transparency in the mining sector and blockchain industry.
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