The disclosure of the largest Bitcoin theft in history was revealed through analysis by Arkham. The incident occurred in late 2020 and redefines the scale of crypto heists.
Details of the Bitcoin Theft
According to a recent analysis by Arkham, it was discovered that on December 28, 2020, 127,000 BTC was stolen from the Chinese mining pool Lubian, worth $3.5 billion at the time. This incident is now recognized as the largest hack in cryptocurrency history. Most hacks get reported, but this incident went unnoticed for more than four years.
Lubian's Reaction to the Incident
Despite losing nearly all of its Bitcoin holdings, Lubian never disclosed the incident. Additionally, the hacker did not attempt to publicize the theft either. In a recovery effort, Lubian issued over 1,500 small Bitcoin transactions asking for the return of the stolen assets and relocated the remaining 11,880 BTC into designated recovery wallets.
Lessons from the Largest Hack
Investigations revealed that the hack stemmed from weak private key generation methods, raising new questions about the transparency and security of major crypto companies. With significant assets flowing through centralized entities with limited oversight, this case emphasizes the need for improved security measures in the industry.
The unveiling of this incident has initiated discussions about safety and transparency in the cryptocurrency sector and reshaped the understanding of major thefts in the crypto world.
