Arkham Identifies Addresses of LuBian Hacker Behind $3.1 Billion Theft

On-chain analysis uncovers that in December 2020, weak private key generation allowed hackers to drain over 90% of LuBian’s BTC, making the attacker one of the largest Bitcoin holders.

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Summary

Blockchain analytics firm Arkham Intelligence revealed that in December 2020, the LuBian mining pool was hacked, resulting in the theft of 127,426 BTC—worth about $3.5 billion at the time and now approximately $14.5 billion. The breach, carried out over two days due to weak private key generation, included an additional $6 million theft from an associated Omni-layer address. Despite LuBian’s efforts, including sending over 1,500 OP_RETURN messages using 1.4 BTC to recover assets, the attacker retains the stolen funds, ranking even ahead of the 2011 Mt. Gox attacker.

Terms & Concepts
  • LuBian: A prominent Chinese Bitcoin mining pool that once controlled nearly 6% of the network’s hash rate before suffering a massive hack in December 2020.
  • BTC: The abbreviation for Bitcoin, a decentralized digital currency whose transactions are secured by cryptography.
  • Private key: A confidential cryptographic code essential for accessing cryptocurrency funds; its weak generation can lead to security breaches.