The Most Significant Cryptocurrency Heist in History: A Deep Dive
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Unveiling the Largest Crypto Theft in History
In December 2020, a major breach occurred involving the Chinese Bitcoin mining pool, LuBian. This incident is now renowned as the largest cryptocurrency theft ever recorded. During this unprecedented heist, a staggering 127,426 Bitcoin (BTC) was stolen. At the time of the incident, these digital assets were valued at approximately $3.5 billion. However, due to the recent surge in BTC prices, their current valuation has skyrocketed to an astounding $14.5 billion, as per data from the blockchain analytics firm, Arkham Intelligence.
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LuBian was once a formidable force in the Bitcoin mining community, controlling 6% of the network’s hash rate. However, in early 2021, it mysteriously disappeared from the scene. Initially, this vanishing act was attributed to regulatory pressures, but recent revelations from Arkham suggest a massive cyberattack was the underlying cause.
A Vulnerable Private Key: The Downfall of a Mining Giant
The breach was facilitated by exploiting a critical weakness in private key generation, a flaw that allowed hackers to siphon off over 90% of LuBian’s BTC in a single, devastating attack on December 28, 2020. Just two days later, an additional $6 million in BTC and USDT was extracted from another wallet associated with LuBian, operating on the Bitcoin Omni layer.
In a bid to reclaim their losses, LuBian issued more than 1,500 Bitcoin transactions embedded with OP_RETURN messages, directly appealing to the attackers to return the stolen funds. Unfortunately, these pleas went unanswered.
As of today, the hacker’s wallet remains mostly untouched, with the last significant activity being a wallet consolidation in July 2024. This dormant address is now identified as the 13th largest Bitcoin wallet, even surpassing the infamous Mt. Gox hacker.
Implications of the Bitcoin Heist on Cryptocurrency Security
This colossal breach eclipses all previous cryptocurrency hacks, including the notorious $1.5 billion Bybit exploit of 2025. It highlights significant vulnerabilities in older blockchain infrastructures and private key protocols. With $3.1 billion already lost to crypto hacks in the first half of 2025, industry experts are calling for reinforced security measures among mining pools and exchanges.
The resurgence of the LuBian case serves as a potent reminder of the critical importance of robust security in the crypto world. Weak security measures can result in astronomical losses and may remain undetected for years.
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