According to new insights from Arkham Intelligence, a little-known Chinese mining pool might have experienced one of the largest recorded Bitcoin 
$77,710 losses in history. Arkham’s analysis suggests that 127,426 BTC were stolen from the LuBian Mining Pool in the last days of 2020. This incident was publicly disclosed for the first time by Arkham.
Details of the Incident and Analytical Findings
In 2020, LuBian Mining Pool was recognized as one of the largest mining pools globally, reportedly controlling about 6% of the total processing power on the Bitcoin network. Arkham’s data reflects that over 90% of the Bitcoin on the platform was transferred in a single transaction on December 28, 2020.
Two days post this occurrence, approximately 6 million dollars worth of BTC and Tether (USDT) from another LuBian address were also transferred. Following these incidents, LuBian management potentially moved the remaining 11,886 BTC to various wallets to safeguard them.
Neither LuBian management nor the perpetrators of the breach have made any official statements regarding the issue. Arkham was the first to make a public announcement about the event. The analysis revealed that requests were transmitted to the attackers from the related wallet.
Communication Attempts and Potential Security Flaws
Arkham’s analysis of blockchain records identified the use of a special message communication method called “OP_RETURN” by LuBian managers. By expending 1.4 BTC, over 1500 messages were sent through the Bitcoin network to reach out to the attackers, demanding the return of the BTC.
Arkham stated, “LuBian mining pool transmitted hundreds of on-chain messages imploring attackers for restitution. We believe these messages were sent by the rightful wallet owner.”
Technically, LuBian’s use of a weak private key generation algorithm is speculated to be a potential reason for the vulnerability, rendering it susceptible to external attacks.
Most of the stolen Bitcoins have since remained stagnant in wallets. The last significant transfer recorded was in July 2024, aimed at consolidation.
Current Status of the Assets and Implications
Comparing the price of Bitcoin in 2020 to present rates, the stolen BTCs are now worth approximately 14.5 billion dollars. This value suggests that the wallet transferred from LuBian is currently the 13th largest Bitcoin holder according to Arkham’s data.
The incident surpasses other notable digital asset losses, such as the infamous Mt. Gox case. Nevertheless, neither the LuBian administration nor the attackers have engaged in any transactions involving the assets in the wallets to date. Arkham continues to monitor both the addresses and asset movements, although no identities have been disclosed.
