U.S. Government Seizes Over 127,000 Bitcoin in High-Stakes Fraud Case

Historic Bitcoin Seizure and the Implications for Cryptocurrency Crime

In a landmark move that underscores the U.S. government's growing prowess in tackling cryptocurrency-related crimes, 127,271 Bitcoin (BTC), valued at billions, has been successfully seized. The confiscation stems from a years-long investigation into Chinese fugitive Chen Zhi and the fraudulent Prince Group network. According to official records dated July 23, 2024, the massive haul originates from the Lubian wallet and was initially disclosed by analyst Emmet Garlic through a report on forfeiture.gov.

The Link to Lubian Wallet and China's Prince Group Fraud

The seized Bitcoin, tied to the now-defunct Chinese mining pool Lubian.com, connects directly to the high-profile fraud led by Chen Zhi. Blockchain analysts trace the illicit assets back to Lubian’s operational funds, which were compromised during a notorious hacking incident in 2020. Lubian reportedly lost approximately 127,000 BTC in the hack, marking one of the most significant cryptocurrency thefts to date.

Following extensive tracking efforts, the assets were eventually traced and recovered by U.S. authorities in 2024. Lubian.com, accused of handling stolen funds, has become emblematic of the vulnerabilities within certain crypto mining operations. The seizure not only signals the expanding reach of government enforcement but also highlights the intricate links between international crime networks and decentralized currencies.

Asset Forfeiture Notice and Claim Deadlines

The U.S. Department of Justice and Treasury issued an official notice concerning the Bitcoin’s forfeiture on October 16, 2025. This notice specifies the legal protocol for anyone with valid claims to the confiscated cryptocurrency. Claimants must submit necessary court documents within 60 days from October 16, after which a 21-day extension is granted to respond to initial claims. Clearly, the U.S. government is maintaining a robust stance to prevent fraudulent claims—those filing baseless ownership claims risk facing severe legal and financial penalties.

The notice reflects the increasingly complex intersection of crypto asset recovery, legal ownership battles, and government accountability, offering the public an opportunity to stake legitimate claims while deterring exploitation of the legal system.

Unraveling the Mystery of Lubian Wallet's Private Keys

An intriguing aspect of this case revolves around how government authorities accessed Lubian wallet’s private keys—a critical component for securing the BTC assets. While the U.S. government remains tight-lipped, speculation abounds among industry insiders.

Possible explanations range from vulnerabilities in Lubian’s security infrastructure enabling external compromises, to the prospect of cooperation with key insiders under governmental pressure. Blockchain analysts hypothesize that tracing post-hack transactions may have yielded reference points crucial for locating and accessing the assets.

Adding further intrigue, Emmet Garlic shared additional insights through a post on X (formerly Twitter). He emphasized that the Treasury’s notice clarified the Bitcoin theft had been carried out by a third-party hacking entity rather than stemming from direct intervention by U.S. authorities. These revelations amplify the mystery around Lubian’s downfall and offer tantalizing clues for analysts eager to decipher the methodology behind cracking the case.

Broader Implications for Cryptocurrency Law Enforcement

While the seized Bitcoin resides under government custody, the episode highlights the evolving complexities in cryptocurrency crime investigations. From hacking incidents to asset tracing, this case offers a glimpse into the sophisticated methods now employed by law enforcement agencies to combat blockchain-based fraud.

Emerging technologies and new partnerships between governments and blockchain intelligence firms are increasingly pivotal for tracking illicit asset flows. However, the Lubian wallet seizure also raises questions on how law enforcement navigates the nuances of accessing private keys and challenging the pseudonymity of cryptocurrency transactions.

The U.S. government’s decisive action in this case not only marks a milestone in international crypto enforcement but also serves as a stark reminder that decentralized assets are not immune to regulation and oversight. As blockchain adoption grows, both users and institutions face mounting pressure to tighten security and adhere to regulatory norms.

In conclusion, the Lubian Bitcoin case exemplifies the intricate tug-of-war between malicious actors exploiting blockchain’s anonymity and evolving law enforcement techniques. As cryptocurrency-related crimes grow, so too does the sophistication of asset recovery measures, painting a dynamic picture of the future interaction between crypto technology and governmental regulation.