US dismisses Chinese accusation of extensive LuBian mining pool hack

The U.S. Department of Justice has vehemently denied allegations from China's National Computer Virus Emergency Response Center claiming that it had launched a cyberattack against the LuBian Bitcoin mining pool in 2020 before disclosing its sequestration this year, The Cyber Express reports.

More than 127,000 BTC worth nearly $13 billion, which was drained by purported state-sponsored hackers from LuBian hot wallets in December 2020, had been dormant before being transferred to new blockchain addresses last year, which is unlikely to be standard hacker behavior, the CVERC report claimed.

Moreover, subsequent linking of the Bitcoin assets to Prince Group Chairman Chen Zhi, who was later indicted for crypto-related fraud, was indicative of coordinated government action, according to the CVERC. Additional findings from the report showed significant vulnerabilities impacting LuBian, including its usage of a 32-bit pseudo-random algorithm that eased brute-force attacks.