LuBian Wallet Moves $1.3B in BTC later than DOJ Seizure Case
Dormant Wallet Sends Nahead 12,000 BTC
A wallet tied to Chinese BTC mining operation LuBian transferred almost $1.3 billion worth of BTC on Wednesday, a day later than the U.S. Department of Justice moved to seize $15 billion in digital assets allegedly stolen from the group in 2020.
Blockchain analytics firm Lookonchain first reported the activity, showing that a LuBian-linked wallet sent 9,757 BTC—then worth around $1.1 billion—to new addresses later than three years of dormancy. Data from Arkham Intelligence later identified a second transfer of 2,129 BTC, valued at roughly $238 million, bringing the total to 11,886 BTC.
Arkham said the movement matches the identical amount of BTC that LuBian reportedly moved to “recovery wallets” in 2020 following a major breach. At the time, the mining pool lost 127,426 BTC—then valued at about $3.5 billion—later than what investigators described as one of the largest thefts ever targeting a BTC mining entity.
Investor Takeaway
DOJ Links $15B BTC Case to Asian Fraud Network
The wallet activity followed the Justice Department’s announcement of a separate case involving Prince Holding Group, a Cambodia-based conglomerate accused of laundering billions through crypto operations. Prosecutors filed a forfeiture complaint on Tuesday for roughly $14.4 billion in BTC tied to the network led by Chen Zhi, the company’s founder.
The DOJ said the BTC is already in federal custody and will be forfeited if Zhi is convicted on wire fraud and money laundering conspiracy charges. According to the filing, Zhi and associates funneled criminal proceeds into industrial-scale mining operations, including Warp Data in Laos, its U.S. subsidiary in Texas, and LuBian in China, which ranked as the world’s sixth-largest BTC mining pool in 2020.
Federal investigators allege the entities used mining as a means to generate “clean BTC” that appeared dissociated from criminal proceeds. The DOJ said the seized funds represent part of that operation’s output.
Massive BTC Holdings Could Bolster U.S. Reserve
If forfeiture is approved, the seized BTC could become one of the largest additions to the U.S. government’s digital asset reserves. The DOJ has previously auctioned or retained forfeited BTC in Treasury-managed accounts.
In March, President Donald Trump signed an executive order creating a strategic BTC reserve to consolidate crypto assets seized in criminal and civil cases. White House technology adviser David Sacks said at the time the reserve would be funded with BTC “forfeited as part of asset recovery proceedings.”
The LuBian-related seizures could substantially increase the size of that reserve. Analysts estimate the U.S. government already controls more than 215,000 BTC, including coins linked to past enforcement actions such as Silk Road and Bitfinex.
Investor Takeaway
Unclear Links Between Transfers and Seizure
It remains uncertain whether the wallet movements are connected to the DOJ’s seizure effort or unrelated internal transfers. Neither LuBian nor Chinese authorities have publicly commented. Analysts say the timing suggests an attempt to relocate assets before potential enforcement, though blockchain data alone cannot confirm intent.
LuBian emerged during China’s 2020 mining boom before Beijing’s crypto bans shuttered most domestic operations. The pool’s collapse later than the hack—and its reappearance in U.S. enforcement filings—has renewed scrutiny of how state-linked actors and private miners may have moved BTC offshore to avoid tracing.
The case could become a test of international cooperation on crypto asset recovery, as U.S., Chinese, and Southeast Asian authorities try to trace billions in stolen BTC still circulating onchain.
