Bitcoin Stolen in Major Mining Pool Heist

A recent investigation by Arkham Intelligence reveals that a significant heist targeted a Chinese mining pool, leading to one of the largest Bitcoin thefts in recorded history. The incident reportedly involved the LuBian Mining Pool, which lost a staggering 127,426 BTC in late 2020. This revelation marks Arkham’s first public disclosure of the event.

What Happened in the LuBian Incident?

LuBian Mining Pool, once a key player commanding around 6% of Bitcoin’s network hash rate, fell prey to a colossal theft when 90% of its Bitcoins were transferred out in one swift transaction on December 28, 2020. This was followed by the movement of additional funds, valued at around $6 million, from another address linked to LuBian just days later. The aftermath saw the pool’s operators scrambling to secure the remaining 11,886 BTC by dispersing them across multiple wallets.

How Did the Hackers Communicate?

Arkham Intelligence unearthed a fascinating communication method utilized by LuBian’s managers to reach out to the perpetrators. By implementing the “OP_RETURN” method, they dispatched over 1,500 messages through the Bitcoin network in a desperate attempt to reclaim the stolen funds. These messages cost the managers 1.4 BTC.

“LuBian mining pool transmitted hundreds of on-chain messages imploring attackers for restitution. We believe these messages were sent by the rightful wallet owner,” stated Arkham.

Evidence points to a possible breach due to the use of a substandard private key generation method, compromising the security of the pool and facilitating the theft.

While most of the stolen Bitcoins remain dormant, the last major movement occurred in July 2024, signaling an effort to consolidate the assets.

What Is the Current Situation?

Given Bitcoin’s current valuation, the purloined assets are now worth about $14.5 billion. The aggregate holdings in the affected wallet position it as the 13th largest Bitcoin wallet, based on Arkham’s insights. Arkham continues to track related addresses and movements; however, those behind the theft remain unidentified, with no transactions taken to recover or utilize the assets.

Comparing with Mt. Gox, the LuBian incident is among the most substantial to strike the digital currency sphere, but no party—neither the pool’s operators nor the attackers—has made any transactional steps regarding the stolen Bitcoins since the heist. Arkham maintains oversight of these dormant funds, keeping a watchful eye on any potential developments.