Recent analysis by Arkham Intelligence indicates that the LuBian Mining Pool may have been victim to one of the largest Bitcoin thefts in history, with 127,426 BTC stolen in late 2020.
Details of the Incident and Analytical Findings
In 2020, the LuBian Mining Pool was one of the largest in the world, reportedly controlling about 6% of the total processing power of 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 after this occurrence, approximately 6 million dollars worth of BTC and Tether were also transferred from another LuBian address. Rumors suggest that the pool management moved the remaining 11,886 BTC to various wallets to safeguard them.
Neither LuBian management nor the perpetrators have made official statements regarding the incident. Arkham was the first to publicly disclose the event.
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 demanding the return of the stolen 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, making it susceptible to external attacks.
Current Status of the Assets and Implications
Most of the stolen Bitcoins have since remained stagnant in wallets. The last significant transfer recorded was in July 2024, aimed at consolidation.
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.
The incident involving LuBian Mining Pool highlights the importance of security in the cryptocurrency sector. Ongoing investigations and monitoring by Arkham emphasize the need for better oversight of assets and potential vulnerabilities in mining systems.
