Silent Collapse: Lubian Lost $3.5 Billion in Bitcoin in 2020 and Never Told Anyone
$3.5 Billion Bitcoin Theft Covered Up for Years: Lubian Mining Pool’s Silent Collapse Exposed
A Four-Year Secret Finally Revealed
A shocking revelation from blockchain intelligence firm Arkham has exposed the biggest crypto hack in history—and it remained hidden for over four years.
According to Arkham’s latest report, 127,000 Bitcoin (BTC)—worth around $3.5 billion at the time—was silently drained from Lubian, a once-prominent Chinese mining pool, on December 28, 2020.
For years, the crypto world believed Lubian’s sudden 2021 shutdown was due to Chinese regulatory crackdowns. But now, it turns out a massive security breach may have caused its downfall.
What Was Lubian and Why It Mattered
Lubian’s Role in the Bitcoin Ecosystem
At its peak, Lubian controlled nearly 6% of Bitcoin’s global hash rate, making it one of the top 10 mining pools in the world. It played a key role in verifying transactions and maintaining the network’s decentralization.
But in early 2021, the pool vanished without explanation. At the time, many blamed:
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Chinese government regulations against mining
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Iranian restrictions, where many of its machines reportedly operated
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A broader mining exodus to regions like Kazakhstan and North America
Now we know—the real reason was a catastrophic hack.
Inside the Hack: What Happened on December 28, 2020?
How 127,000 BTC Disappeared
Arkham’s blockchain sleuths traced the theft to weak private key generation—a critical security flaw. On December 28, 2020, a hacker used this vulnerability to drain nearly all of Lubian’s Bitcoin holdings.
What’s even more shocking?
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Lubian never disclosed the breach.
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The hacker never bragged or attempted to cash out.
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Crypto Twitter, Reddit, and analysts missed it completely.
A Silent Plea for Help
Instead of going public, Lubian tried to recover the stolen BTC privately. According to Arkham:
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The company sent over 1,500 tiny Bitcoin transactions with embedded “please return” messages to the hacker’s wallet.
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It also moved the remaining 11,880 BTC to “recovery wallets” in hopes of protecting what was left.
These desperate moves show how unprepared even major players are for extreme loss events.
Hacker’s Wallet: Billions Just Sitting Idle
As of 2025:
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The stolen 127,000 BTC—now worth over $7 billion—has mostly remained untouched.
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The only major movement happened in 2024, when the hacker consolidated funds into a new address.
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There has been no attempt to launder or sell the stolen crypto, making this one of the strangest digital heists ever.
This behavior has led analysts to speculate:
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Is the hacker a government insider or intelligence agency?
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Could it be a white-hat hacker gone rogue?
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Or is it someone too scared to move the funds?
Why This Matters: Crypto Oversight Still Lags Behind
A Wake-Up Call for Crypto Infrastructure
Arkham’s report highlights serious problems in the crypto space:
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Lack of transparency from centralized players like Lubian
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Poor private key security practices
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No requirement to report breaches to the public
Even in 2025, these issues remain widespread. Billions of dollars continue to flow through crypto mining pools, centralized exchanges, and DeFi protocols—many of which still lack basic safeguards.
If a top-10 mining pool can be hacked and collapse without anyone knowing for years, it’s clear the industry still has huge gaps in oversight.
What’s Next for the Lubian Case?
Ongoing Investigations, But Few Answers
Arkham says investigations are ongoing. So far:
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The identity of the hacker remains unknown.
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The exact method used to exploit the weak keys is still being analyzed.
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Lubian’s remaining team has not commented publicly.
This revelation could prompt renewed efforts by:
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Law enforcement
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Global regulators
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Cybersecurity experts in the blockchain space
But one thing is clear: This was not just a mining pool shutdown—it was crypto’s biggest silent disaster.
Lessons from Lubian’s Collapse
The Lubian hack changes the history books. It dethrones even Mt. Gox and Bybit as the biggest thefts in crypto history, and it stayed hidden for longer than any major incident.
This raises serious questions:
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How many other breaches have gone unreported?
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How can centralized crypto players be held more accountable?
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Will regulators finally step in to enforce better security standards?
Until these questions are answered, investors and users alike should treat crypto infrastructure with a healthy dose of skepticism.
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