China Accuses US of Secretly Seizing $13 Billion in Bitcoin
China has reportedly accused the United States of secretly seizing 127,000 Bitcoin price about $13 billion from the 2020 LuBian mining pool hack, calling it a state-backed cyber operation.
However, the US denied the declare, saying the Bitcoin was lawfully seized in a very separate fraud case. The dispute renewed international considerations over digital asset sovereignty.
Sovereignty Clash Over LuBian Funds
China has reportedly accused the US of seizing funds recovered from the LuBian hack underneath the guise of a legislation enforcement operation.
The US Department of Justice (DOJ) has reportedly countered these accusations. It stated the US legally seized the Bitcoin as half of a fraud probe into Cambodian businessman Chen Zhi, who faces allegations of working crypto scams and human trafficking operations throughout Southeast Asia.
Last month, the DOJ filed a civil forfeiture case in search of management of roughly 127,271 Bitcoin, valued at over $15 billion. US officers stated the transfer was coordinated with worldwide companions to compensate victims of Chen’s community.
Blockchain analytics agency Arkham Intelligence tracked exercise from wallets linked to LuBian round that point. One main Bitcoin switch was reportedly made simply because the DOJ’s case grew to become public.
That revelation grew to become the main target of China’s problem to Washington’s account.
Beijing’s authorities cybersecurity company argued that the timing of the transfers didn’t align with a standard law enforcement seizure.
Instead, it urged that the actions indicated the US might have gained entry to Bitcoin earlier than officially acknowledged.
This newest dispute between China and the US has reignited debate over digital asset sovereignty.
Bitcoin Becomes a Geopolitical Tool
The tug of battle between the 2 superpowers over Bitcoin highlights a broader situation regarding money that transcends borders. Experts say that crypto enforcement has advanced right into a geopolitical device.
Bitcoin’s standing as a non-sovereign asset permits nations to increase their affect by way of authorized programs and expertise.
Also, the Financial Stability Board has warned of significant gaps in global crypto regulation. It notes that with out a unified framework, international locations are performing independently and infrequently for strategic acquire.
In parallel, Beijing’s frustration stems from long-standing fears of Western dominance in blockchain infrastructure and monetary surveillance.
China views US management of digital programs as a kind of financial leverage and has promoted its personal blockchain requirements and the digital yuan as a countermeasure.
The US has relied on assertive enforcement, as seen in instances equivalent to Silk Road and Bitfinex, to broaden its jurisdiction and reinforce its position in cross-border crypto operations.
However, critics warn that this fragmented strategy dangers undermining worldwide belief.
Without coordination, main powers apply their very own model of justice, turning crypto seizures into devices of statecraft moderately than efficient crime prevention.
The publish China Accuses US of Secretly Seizing $13 Billion in Bitcoin appeared first on BeInCrypto.
