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China Accuses U.S. of Bitcoin Theft After 2020 Mining Pool Hack
In a stunning diplomatic escalation, China accuses the U.S. of Bitcoin theft, alleging that the American government unlawfully seized 127,000 BTC — worth over $13 billion — stolen from a Chinese mining pool in 2020.
This explosive claim, made by China’s Ministry of Foreign Affairs, has ignited a new wave of geopolitical tension between the world’s two largest economies, with cryptocurrency now emerging as a flashpoint in global politics.
The Background: The 2020 Mining Pool Hack
In 2020, one of China’s biggest Bitcoin mining pools suffered a major cyber breach, resulting in the disappearance of roughly 127,000 BTC. At the time, the culprits remained unknown, and the story faded as Bitcoin’s value fluctuated wildly during the crypto boom of 2021.
Now, years later, Beijing claims it has uncovered evidence linking the stolen Bitcoin to U.S. intelligence-backed digital operations — alleging that Washington covertly seized the funds through intermediaries and stored them in wallets controlled by American agencies.
Official Statement from Beijing
A spokesperson from China’s Foreign Ministry issued a strongly worded statement, saying:
“We have undeniable proof that the U.S. has unlawfully taken possession of digital assets belonging to Chinese citizens. Such actions constitute cyber theft and abuse of international digital sovereignty.”
The ministry further demanded that the United States return the assets immediately, calling it “a violation of both blockchain ethics and international law.”
This statement marks the first time a nation has publicly accused another of state-level Bitcoin theft.
Washington’s Response to the Bitcoin Theft Allegations
Officials in Washington have yet to directly respond to China’s accusations. However, insiders from the Department of Justice (DOJ) suggest the claims could be tied to earlier Bitcoin seizures linked to cybercrime cases involving Chinese nationals.
A White House representative commented cautiously:
“The United States does not engage in illegal asset seizure. Any digital asset held by the U.S. government is obtained through lawful enforcement operations.”
The response stops short of confirming whether the 127K BTC in question were part of any U.S.-led investigation.
Global Crypto Market Reactions
Since the announcement that China accuses the U.S. of Bitcoin theft, crypto markets have reacted sharply. Bitcoin briefly fell by 3%, with traders speculating that increased political tension could affect global liquidity and cross-border crypto regulation.
Experts at CoinDesk note that such allegations could intensify calls for transparency in blockchain investigations and asset recovery procedures.
Meanwhile, Bloomberg reports that international regulators are monitoring the situation closely.
Impact on Global Crypto Diplomacy
This dispute is not just about stolen Bitcoin — it represents a clash of digital power between two superpowers.
If Beijing’s claims hold merit, the incident could lead to a new phase of crypto geopolitics, where nations weaponize blockchain assets as tools of economic influence.
Crypto analysts suggest the controversy might push countries to develop blockchain-based treaties for asset tracking, seizure, and return. Such agreements could reduce conflicts in the growing digital finance sector.
Conclusion: The Future of Crypto Trust
Whether or not the accusations prove true, one thing is certain — the claim that China accuses the U.S. of Bitcoin theft has shaken both the crypto world and international diplomacy.
It underscores how cryptocurrencies, once considered stateless and neutral, are now deeply intertwined with national interests and geopolitical power plays.
The coming weeks will reveal whether this is merely political theater or a genuine international cyber scandal with global repercussions.
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