TLDR
- LuBian wallet moved 11,886 BTC worth $1.3B after years of dormancy.
- DOJ filed a $15B forfeiture case tied to Prince Holding Group.
- The seized Bitcoin could boost the new U.S. strategic Bitcoin reserve.
- Arkham linked the $1.3B moved BTC to LuBian’s 2020 hacked funds.
A Bitcoin wallet connected to the Chinese mining operation LuBian moved around $1.3 billion in Bitcoin just a day after the United States Department of Justice (DOJ) revealed plans to seize $15 billion worth of Bitcoin linked to a major fraud case. The sudden movement, after years of inactivity, has drawn attention from blockchain analysts who believe it may be tied to previously stolen digital assets.
Large Bitcoin Transfers Detected After Years of Dormancy
On Wednesday, blockchain analytics firm Lookonchain reported that a LuBian-linked wallet transferred 9,757 Bitcoin, valued at around $1.1 billion at the time, to new wallets after three years of no recorded activity. Hours later, another 2,129 Bitcoin, worth about $238 million, were moved, according to data from Arkham Intelligence.
The total movement of 11,886 Bitcoin, estimated at $1.3 billion, coincided with heightened scrutiny following the DOJ’s recent case announcement. Analysts noted that this matched the same number of Bitcoin that LuBian reportedly moved to recovery wallets after its 2020 security breach.
Background of the LuBian Hack and DOJ Forfeiture Case
In August 2020, LuBian was allegedly hacked for about 127,426 Bitcoin, which was worth nearly $3.5 billion at that time. Investigators from Arkham Intelligence stated that part of the stolen assets were later recovered and stored in separate wallets. The recent movement of 11,886 Bitcoin mirrors that earlier recovery figure, suggesting possible links between the two events.
The DOJ on Tuesday unsealed an indictment involving Prince Holding Group, a Cambodia-based company accused of large-scale crypto fraud. Prosecutors filed a forfeiture complaint covering about $14.4 billion in digital assets allegedly connected to the group’s founder, Chen Zhi. The department stated that these funds were laundered through several companies to disguise their criminal origin.
DOJ Links Crypto Mining Operations to Fraud Proceeds
According to the DOJ, the scheme’s proceeds were funneled into crypto mining operations in Asia and the United States. The network included a Laos-based entity called Warp Data, its Texas-based subsidiary, and the China-based LuBian mining pool.
Authorities allege these companies were used to produce Bitcoin that appeared unconnected to the illicit proceeds. The DOJ added, “These operations generated clean Bitcoin that was separated from funds gained through fraudulent activities.” Investigators said the Bitcoin involved in the case is already secured by the government and awaits court approval for forfeiture.
Possible Addition to U.S. Bitcoin Reserves
If the court grants the forfeiture, the seized Bitcoin could become one of the largest additions to the U.S. government’s digital asset holdings. Earlier in March, President Donald Trump signed an executive order establishing a strategic Bitcoin reserve aimed at managing forfeited digital assets.
White House AI and crypto czar David Sacks stated that the reserve would consist of Bitcoin recovered through criminal or civil forfeiture actions. The LuBian-linked movements, following the DOJ’s announcement, have raised questions among market observers about whether more related wallets could move funds in the coming days.
