LuBian Suffers Massive 127K Bitcoin Heist in 2020

In December 2020, Chinese Bitcoin mining pool LuBian fell victim to a historic theft, involving 127,426 BTC. Arkham Intelligence’s report reveals that the funds remained dormant for nearly five years.

LuBian attempted on-chain communications with the hacker, requesting Bitcoin’s return through 1,500 OP_RETURN messages. The stolen Bitcoin remains unconsolidated and undisbursed in the market.

The incident highlights serious concerns within the crypto community. The attack demonstrates security inadequacies in mining operations and raises questions about custodial robustness. No funds have yet been laundered or traced to exchanges.

Arkham has uncovered the largest crypto theft in history: a 127,000 BTC hack that targeted the then-prominent LuBian mining pool in December 2020. Neither the victim nor attacker have ever publicly acknowledged this incident. — Arkham Intelligence (Source 1)

The theft has not yet prompted regulatory responses from global authorities, though the magnitude spotlights the mining sector’s cryptographic asset management inadequacies. Future action may focus on enhancing industry protocols.

The revelation sent ripples through the crypto community, though Bitcoin’s long-term price remains unaffected. Crypto markets question the response of mining pool custodians and seek improved custody solutions for heightened security.

The incident transcended other notable heists, including those at Mt. Gox and Bitfinex. Analysts emphasize the need for sophisticated key management and advanced security measures to prevent future breaches of this scale.