China’s Cybersecurity Agency Alleges US Government | Crypto News
According to a latest report by Bloomberg, the cybersecurity arm of China has brazenly accused the US authorities of orchestrating the theft of roughly $13 billion in Bitcoin (BTC), including rigidity to the continuing cyber relations between the 2 nations.
China Alleges State-Level Operation
The incident in query revolves around the theft of 127,272 BTC from the LuBian Bitcoin mining pool in December 2020, constituting one of the most substantial crypto heists in historical past.
The Chinese National Computer Virus Emergency Response Center suggests that this large-scale hack was doubtless a deliberate “state-level hacker operation” orchestrated by the US.
The company factors to the discreet and delayed motion of the stolen Bitcoin as indicative of governmental involvement reasonably than typical prison conduct.
The report additional hyperlinks the Bitcoin from LuBian, a former Bitcoin mining firm, to tokens seized by the US authorities, which authorities declare are linked to Chen Zhi, the chairman of the Cambodian conglomerate Prince Group.
Chen Zhi had been accused by the US of collaborating in a wire-fraud conspiracy and working a money-laundering scheme in October. Notably, particulars on when and how the Bitcoin was confiscated by the US stay undisclosed.
The narrative put forth in the report suggests that the US authorities may need employed hacking techniques as early as 2020 to acceptable the 127,000 Bitcoin related with Chen Zhi, characterizing the operation as an instance of a “black eats black” maneuver orchestrated by a state-level hacking entity.
Bitcoin Forfeiture Fallout
Federal prosecutors concerned in the Chen case have refrained from disclosing the strategies used to gain control of the Bitcoin, following the Department of Justice’s civil forfeiture criticism seizing the 127,271 BTC, which stands as the most substantial forfeiture motion undertaken by the US authorities.
Recent statements from the Chinese authorities have highlighted a growing development of accusing the American authorities of partaking in hacking actions.
Earlier this yr, China asserted that the US exploited vulnerabilities in Microsoft Exchange servers to goal Chinese firms. Just last month, China alleged that it possessed plain evidence of a US cyber assault on the National Time Service Center.
In response to the allegations, a lawyer representing Chen Zhi has filed a request for further time in a US court to enable for tracing of the stolen BTC from LuBian. The attorney, Matthew L. Schwartz has criticized the federal government’s claims against Chen as being “seriously misguided.”
Schwartz, who serves as counsel to Mr. Chen and the Prince Group, acknowledged that they’re collaborating with cryptocurrency specialists to hint the Bitcoin seized over a yr in the past and stolen back in 2020. T
At the time of writing, BTC was trading at $102,550, recording losses of 3% in the 24-hour time body.
Featured image from DALL-E, chart from TradingView.com
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