Nearly 16,000 Bitcoin units, worth about $1.83 billion, have been reportedly transferred from wallets linked to the Chinese mining pool LuBian, which was hacked in 2020.
The large transfers were sent to four different addresses in what analysts believe to be a coordinated transaction. This movement has once again drawn attention to one of the biggest cryptocurrency thefts in history.
Analysts Report a Massive Bitcoin Movement on the Blockchain
Four major transactions were moved from wallets connected to LuBian. Two large transfers of 4,999 BTC each, worth about $539.8 million per transaction, were sent to two separate addresses. Following this were two smaller transfers of 3,424 BTC and 2,535 BTC, which were worth $369.7 million and $274.4 million, respectively.
In total, 15,959 BTC, valued at about $1.83 billion at current market prices, were moved. These four transactions make up one of the largest single-day crypto movements related to stolen funds in recent memory.
Analysts Watch LuBian Wallets as Hackers Possibly Prepare to Cash Out
Blockchain analysts are now keeping a close eye on the four wallets that received the recent transfers, looking for clues about the hackers’ next move.
Analysts believe the hackers may move the coins into fewer wallets or transfer them to exchanges to sell or convert them. They could also use mixing or laundering services to hide the trail and make the funds harder to trace.
Notably, the timing of the movement coincides with the rising Bitcoin prices and the growing liquidity in global markets. This suggests that the hackers may be attempting to re-enter the market or cash out a portion of the stolen funds.
LuBian’s 2020 Breach Remains One of the Biggest Crypto Thefts in History
Chinese mining pool LuBian was not popular until during the 2020 crypto boom. However, in late 2020, the pool suffered a massive internal breach. At the time of the theft, the stolen 127,426 BTC was worth around $3.5 billion. This makes it the largest single crypto theft by dollar value ever recorded. With today’s prices, that amount of Bitcoin would be worth nearly $14.5 billion.
Reports later suggested that the theft might have resulted from poor internal controls and weak fund management within the mining pool. This comes as smaller pools like LuBian often lacked proper security systems, making them more vulnerable to insider attacks or mismanagement.
In comparison, the Mt. Gox exchange collapse in 2014 involved a larger number of Bitcoins, around 44,000 BTC. However, the total loss at that time was much smaller because Bitcoin’s price was very low at the time, resulting in a loss of only a few hundred million dollars.
In contrast, LuBian’s theft involved fewer Bitcoins but a much higher market value, setting a new record for the largest crypto theft by value.