A recent investigation by Arkham Intelligence uncovered that the LuBian Mining Pool in China was the target of a massive theft, resulting in the loss of 127,426 Bitcoins in late 2020. This marks the first public disclosure of the incident by Arkham.
What Happened in the LuBian Incident?
The LuBian Mining Pool, which once commanded approximately 6% of Bitcoin’s network hash rate, fell prey to a colossal theft when 90% of its Bitcoins were transferred out in a single transaction on December 28, 2020. This was followed by the transfer of additional funds totaling around $6 million from another address linked to LuBian shortly after. In the aftermath, the pool’s operators scrambled to secure the remaining 11,886 BTC by dispersing them across multiple wallets.
How Did the Hackers Communicate?
Arkham Intelligence discovered an interesting communication method used by LuBian’s managers to reach out to the perpetrators. They sent over 1,500 messages through the Bitcoin network using the 'OP_RETURN' method in a desperate attempt to reclaim the stolen funds. These messages cost the managers 1.4 BTC.
> "The LuBian mining pool transmitted hundreds of on-chain messages imploring attackers for restitution. We believe these messages were sent by the rightful wallet owner," stated Arkham.
Current Situation
Given Bitcoin’s current valuation, the stolen assets are now worth approximately $14.5 billion. The total holdings in the affected wallet position it as the 13th largest Bitcoin wallet, according to Arkham’s insights. Arkham continues to track related addresses and movements; however, the identities of the thieves remain unknown, with no transactions made to recover or utilize the assets.
When compared to Mt. Gox, the LuBian incident stands as one of the most significant to hit the digital currency sphere, yet no party—neither the pool’s operators nor the attackers—has taken any transactional steps regarding the stolen Bitcoins since the heist. Arkham maintains oversight of these dormant funds, keeping a watchful eye on any potential developments.
The LuBian incident serves as a pivotal moment in cryptocurrency history, highlighting the security risks associated with the industry. Arkham continues to monitor the situation while the stolen assets remain inactive.
