A Bitcoin wallet connected to the Chinese mining operation LuBian has made headlines following a substantial transfer of approximately $1.3 billion in Bitcoin. This unexpected movement occurred just a day after the United States Department of Justice (DOJ) announced plans to seize $15 billion worth of Bitcoin tied to a major fraud case. The wallet’s sudden activity after years of dormancy has intrigued blockchain analysts, who speculate that it may be linked 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 without recorded activity. Shortly after, another 2,129 Bitcoin, worth approximately $238 million, were moved, according to data from Arkham Intelligence. The total movement of 11,886 Bitcoin, estimated at $1.3 billion, coincided with the heightened scrutiny following the DOJ’s recent case announcement. Analysts pointed out that this figure matched the amount of Bitcoin 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, valued at nearly $3.5 billion at that time. Investigators from Arkham Intelligence stated that part of the stolen assets were subsequently recovered and stored in separate wallets. The recent movement of 11,886 Bitcoin appears to mirror that earlier recovery figure, suggesting potential connections between these events.
The DOJ unsealed an indictment on Tuesday 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 linked to the group’s founder, Chen Zhi. The department asserted that these funds were laundered through several companies to conceal their illicit origins.
DOJ Links Crypto Mining Operations to Fraud Proceeds
According to the DOJ, proceeds from the alleged scheme were funneled into crypto mining operations in Asia and the United States. This 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 utilized to produce Bitcoin that appeared unconnected to the illicit proceeds. The DOJ emphasized that these operations generated clean Bitcoin, separated from funds obtained through fraudulent activities. Investigators noted that 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 approves the forfeiture, the seized Bitcoin could represent 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 indicated that this reserve would consist of Bitcoin recovered through criminal or civil forfeiture actions. The recent movements associated with LuBian have prompted market observers to question whether more related wallets will shift funds in the coming days.
