LuBian Attack: $3.5B Stolen in 2020 Now Worth $14.5B, says Arkham

In a shocking event for the crypto world, Arkham Intelligence has uncovered a major Bitcoin heist on X (formerly Twitter) that happened back in 2020. 127,426 BTC in total was stolen from a major Chinese Bitcoin mining pool.

At the time, the value was around $3.5 billion. Today, it’s worth over $14.5 billion.

This massive LuBian Attack went unreported for nearly four years. Neither Mining pool nor the hacker revealed anything about this happening.

Source: X (previously Twitter)

Now, Arkham’s report brings the LuBian Attack into the spotlight, making it a major topic in recent Bitcoin news .

Timeline of the LuBian Attack

It started on December 28, 2020, when hackers took over 90% of total BTC holdings from the mining pool. A second attack came just a day later, draining another $6 million in BTC and USDT from a wallet on the Bitcoin Omni layer.

On December 31, the Chinese mining pool took action to protect what was left, moving 11,886 cryptos into safer recovery wallets. That remaining amount is now worth over $1.35 billion.

Secret Messages to the Hacker

Instead of reporting the crime, mining pool quietly tried to reach the hacker. They sent 1,516 OP_RETURN messages directly to wallets that held the stolen crypto.

These messages begged the hacker to return the funds. To send these messages it cost around 1.4 BTC.

This strange act confirmed the team was aware of the heist but chose not to speak publicly at the time.

According to Arkham, the stolen cryptocurrency has not been moved since July 2024, when the hacker consolidated funds into new wallets.

What Caused the LuBian Attack?

Arkham's report identifies a huge security vulnerability. Apparently, the mining pool employed a weak algorithm when generating their private keys. This exposed them to brute-force attacks, under which hackers tried or computed their proper keys.

This fact illustrates that even big crypto operations are vulnerable if they fail to employ robust enough security devices.

LuBian Attack Turns Largest BTC Heist Ever

The LuBian Attack is now the biggest Bitcoin heist ever found. It surpasses other significant events such as the ByBit $1.5 billion hack and the infamous Mt. Gox hack. According to Arkham's data, the hacker is currently the 13th largest BTC holder globally.

The staggering news has become among the most widely discussed stories.

A Wake-Up Call for the Crypto World

This heist is a stern wake-up call to everyone in the crypto sector. Miningpools and exchanges need to employ tighter encryption, secure key systems, and live monitoring. Without safeguarding measures, large losses remain undetected for years.

Thanks to Arkham Intelligence, this Bitcoin Heist is finally out in the open and it's a lesson that everyone in crypto needs to learn.