LuBian’s 2020 Bitcoin Heist Surfaces, Largest Crypto Theft Revealed

LuBian’s 2020 Bitcoin Heist Surfaces, Largest Crypto Theft Revealed

LuBian, a cryptocurrency mining pool, experienced a massive 127,426 BTC theft worth over $3.5 billion, officially discovered by Arkham Intelligence after five years in October 2023.

The heist now ranks as the largest known crypto theft, affecting LuBian’s operations critically and stirring market reactions with Bitcoin’s price volatility temporarily impacting investor sentiment.

LuBian, the Chinese Bitcoin mining pool once controlling 6% of the network, experienced a shocking theft of 127,426 BTC worth over $3.5 billion. The breach remained undiscovered for almost five years, setting a record in the crypto industry.

Uncovered by Arkham Intelligence, this breach is now the largest in Bitcoin history, surpassing Bybit’s previous record. LuBian’s operators previously pleaded for recovery via Bitcoin’s OP_RETURN, spending 1.4 BTC, but to no avail.

The theft’s impact resonated across the market, with a noticeable BTC price drop below $115,724, reaching a local low at $112,104. Over 90% of LuBian’s reserves were wiped out, leading to its operational collapse.

Financially, this incident severely undermined LuBian’s capacity, leaving only 11,886 BTC preserved. Social discussions suggest a heightened focus on security in mining operations, prompted by the shocking scale of this theft. An important observation comes from industry experts noting that “LuBian’s state of unpreparedness in safeguarding assets highlights a dire need for improved security measures.”

Despite the massive BTC theft, most of the stolen assets remain untouched, keeping crypto forensics on alert. No laundering attempts have been identified, making market players cautious.

The LuBian incident underscores critical vulnerabilities in key management and centralized operations. Analysts compare it to past heists like Mt. Gox in 2014 , drawing attention to necessary regulatory updates and industry measures for enhanced security.