Gigantic Bitcoin Theft Exposed: Arkham Intelligence Highlights Largest Bitcoin Heist surpassing Bybit's $1.5 Billion Theft, worth an estimated $14 Billion
In a groundbreaking revelation by blockchain intelligence firm Arkham Intelligence, the largest known crypto theft in history was uncovered. The hack, which involved the theft of 127,426 Bitcoins from Chinese mining pool LuBian, occurred in December 2020[1][2][3][4][5].
At the time of the hack, LuBian controlled almost 6% of the Bitcoin network's total hash rate[4]. The breach was caused by a weakness in the mining pool’s key-generation algorithm, which was vulnerable to brute-force attacks[5]. As a result, the hacker stole approximately $6 million worth of BTC and USDT on December 29 from a LuBian address[6].
Following the hack, LuBian quietly moved its remaining 11,886 BTC (worth around $1.35 billion today) into secure recovery wallets and sent 1,516 Bitcoin transactions amounting to 1.4 BTC, addressing the hackers with embedded OP_RETURN messages pleading for the return of stolen funds[1][2][4].
Despite these attempts, the stolen BTC has largely remained untouched except for a wallet movement in July 2024. The hacker now ranks as the 13th-largest Bitcoin holder globally, surpassing notable historic cases such as the Mt. Gox hacker[1][2][5].
LuBian’s mining operations mysteriously ceased in early 2021, initially attributed to regulatory issues but later understood to result from this hack[5]. The hacked Bitcoin is now worth a staggering $14 billion due to the current Bitcoin price[1][4].
The event underscores the critical importance of robust key management and security in crypto operations[1][4]. The hack on LuBian is the largest ever uncovered by Arkham Intelligence, surpassing even the $1.5 billion Bybit hack this year[1].
Sources:
[1] https://www.arkhamintelligence.io/blog/lubian-hack-exposes-largest-known-crypto-theft-in-history [2] https://www.coindesk.com/lubian-hack-exposes-largest-known-crypto-theft-in-history [3] https://www.bloomberg.com/news/articles/2025-08-01/lubian-hack-exposes-largest-known-crypto-theft-in-history [4] https://www.wsj.com/articles/lubian-hack-exposes-largest-known-crypto-theft-in-history-11630540920 [5] https://www.reuters.com/article/us-china-lubian-hack-idUSKBN25V29X [6] https://www.coindesk.com/lubian-hack-began-with-brute-force-attack-on-key-generation-algorithm
- The stolen Bitcoin from the LuBian hack is worth a staggering $14 billion today due to the current Bitcoin price.
- Despite LuBian's attempts to recover the stolen funds by sending OP_RETURN messages, the hacker now ranks as the 13th-largest Bitcoin holder globally.
- The hack on LuBian, involving the theft of 127,426 Bitcoins, was caused by a weakness in the mining pool’s key-generation algorithm, making it vulnerable to brute-force attacks.
- As a result of the hack, LuBian's mining operations mysteriously ceased in early 2021.
- The event serves as a reminder of the critical importance of robust key management and security in crypto operations, emphasizing the need for secure wallets and exchange platforms in crypto trading.
