The US may declare one other $2 billion price of Bitcoin associated to the defunct LuBian mining pool, regardless that it has already introduced the most important cryptocurrency seizure in historical past.
On October 15, blockchain researcher Sani reported that roughly 16,237 BTC, price roughly $1.8 billion at present costs, continues to maneuver between addresses linked to LuBian.
These embody:
- bc1qvrwzs8unvu35kcred2z5ujjef36s5jgf3y6tp8: 13,107 BTC
- bc1q42ltpxsc6s8fne0jz474tvuvyq2sqw26ud80xy: 2,129 BTC
- bc1q4c9q0nva573jgs7vxu9hf0qyfqqtzy8awn77s0: 1,000 BTC
Notably, these wallets weren’t listed among the many 25 addresses within the US forfeiture software documenting roughly 127,000 BTC that the federal government is in search of to grab.
Nevertheless, this discrepancy doesn’t essentially imply federal staff are lacking out on funds. Some addresses could stay sealed primarily based on court docket orders, whereas others could belong to intermediaries inside laundering networks.
Nonetheless, the motion of those cash means that researchers have but to totally map the community’s management construction.
Strategic Bitcoin Reserve
If the US authorities recovers the extra 16,237 BTC and the seized 127,000 BTC, the nation’s whole Bitcoin holdings would enhance to roughly 343,000 BTC. This quantity represents roughly 1.6% of the overall provide of the asset.
This holding will undoubtedly make the US authorities the most important nation-state holder of the highest cryptocurrency.
Moreover, the stash places the U.S. simply behind Michael Saylor’s Technique Inc. (previously MicroStrategy Inc.). The corporate’s treasury holds roughly 640,000 BTC, which is greater than 3% of the overall Bitcoin provide.
In the meantime, the LuBian case can be the primary actual check of the Strategic Bitcoin Reserve (SBR), a program created underneath President Donald Trump’s March 2025 govt order to handle seized digital property.
Sen. Cynthia Lummis mentioned the seized bitcoins present the U.S. Congress must “go clear digital asset market construction laws so regulation enforcement can act decisively in opposition to unhealthy actors whereas defending innovation.”
She added:
“Codifying how seized Bitcoin is saved, returned to victims, and guarded for future generations. Turning the proceeds of crime into an asset that strengthens America’s strategic Bitcoin reserve exhibits how sound coverage can flip fraud into an everlasting nationwide worth.”
How Rubian collapsed
LuBian, as soon as ranked among the many world’s high six Bitcoin miners, managed about 6% of the world’s hashing energy by operations in China and Iran.
Its downfall got here in late 2020, when a vulnerability in the important thing era algorithm allowed attackers to exfiltrate 127,426 BTC (price $3.5 billion on the time) from the pockets. Arkham Intelligence first reported the theft in August 2025.
Determined to get well its funds, Rubian broadcast a whole lot of on-chain messages imploring hackers to return their cash, providing a reward for restoration.
Blockchain analytics agency Elliptic later estimated that the corporate spent greater than $40,000 submitting these embedded petitions earlier than disappearing from the community in early 2021.
On October 14, U.S. authorities launched an indictment alleging that the stolen property had been linked to a fraud community linked to the Prince Group, a Cambodian conglomerate led by Cheng Gyi.
Authorities say Chen’s associates funneled the proceeds of the “pig butchering” rip-off, a large on-line funding rip-off, into crypto mining operations like LuBian.
(Tag translation) Bitcoin
