Massive Unreported Crypto Theft Comes to Light

Blockchain analytics firm Arkham Intelligence has uncovered what appears to be the largest cryptocurrency hack in history — a 【$3.5 billion】 Bitcoin theft from Chinese mining pool LuBian that occurred in December 2020 but remained hidden until now. The heist involved 127,426 BTC stolen through what investigators believe was a brute-force attack on vulnerable private key generation.

How the Attack Unfolded

The breach began on December 28, 2020, when attackers drained approximately 90% of LuBian's Bitcoin holdings. ——Remarkably, neither the mining pool nor the hackers publicly disclosed the incident——. The pool managed to salvage only 11,886 BTC by transferring them to secure recovery wallets.

Arkham's report reveals an intriguing detail: LuBian sent 1,516 OP_RETURN messages to the hacker's wallet addresses, spending about 1.4 BTC in the process. These blockchain-embedded messages typically serve as unspendable data carriers, suggesting the pool might have been attempting to communicate with or track the attacker.

Security Flaws Exposed

——The hack exposes critical vulnerabilities in crypto storage practices——. According to Arkham's analysis, LuBian appeared to use an insecure algorithm for private key generation that was susceptible to brute-force attacks. At current Bitcoin prices, the stolen funds would be worth approximately 【$14.5 billion】, underscoring the massive stakes involved in cryptocurrency security.

Historical Context of Major Crypto Hacks

This newly revealed incident dwarfs other notable cryptocurrency thefts: • February's $1.5 billion ByBit exchange hack (attributed to compromised developer credentials) • April's $330 million social engineering attack on an elderly victim • 2014's $450 million Mt. Gox breach

The LuBian case highlights how even sophisticated crypto operations can fall victim to determined attackers — and how such incidents can remain hidden for years despite blockchain's transparent nature.

Industry-Wide Implications

Security experts emphasize this incident demonstrates the urgent need for: 1. More robust private key generation methods 2. Better incident disclosure protocols 3. Advanced blockchain monitoring tools

——As crypto adoption grows, so does the sophistication of attacks——. The LuBian case serves as a stark reminder that what happens on-chain doesn't always stay on-chain, and that even four-year-old transactions can suddenly come under scrutiny.