A cryptocurrency wallet associated with the Chinese Bitcoin mining group LuBian has transferred nearly $1.3 billion worth of Bitcoin, shortly after the United States Department of Justice (DOJ) revealed a major forfeiture case involving $15 billion in alleged illicit funds.

Major BTC Movement After Three-Year Silence

On Wednesday, blockchain analytics firm Lookonchain reported that a LuBian-linked wallet moved 9,757 Bitcoin, valued at approximately $1.1 billion at the time, to a series of newly created addresses. The transfers came after more than three years of inactivity.
Later the same day, Arkham Intelligence identified an additional movement of 2,129 Bitcoin, worth about $238 million. In total, 11,886 Bitcoin, worth around $1.3 billion at current market prices, was shifted.

Background: LuBian’s 2020 Hack

Arkham previously reported in August that LuBian was hacked in 2020, losing 127,426 Bitcoin, then valued at around $3.5 billion. The recent transfers correspond to the 11,886 Bitcoin held in recovery wallets linked to the breach, raising questions about whether the funds are being repositioned ahead of legal action or asset seizure.

DOJ Targets Prince Holding Group

The large-scale transfers occurred less than 24 hours after the DOJ unsealed an indictment against Prince Holding Group, a Cambodia-based conglomerate led by Chen Zhi. US prosecutors accuse the group of conducting vast crypto fraud operations and laundering illicit proceeds through global mining entities.
A forfeiture complaint was filed to seize approximately $14.4 billion tied to the alleged scheme. According to the DOJ, Chen Zhi and his associates channelled illegal gains into mining outfits, including Warp Data in Laos, its Texas subsidiary and LuBian in China.

Producing ‘Clean’ Bitcoin

The DOJ alleges these companies used mining operations to generate newly minted Bitcoin, effectively disconnecting criminal funds from their illicit origins. By 2020, LuBian had risen to become the sixth-largest Bitcoin mining pool.

Potential Impact on US Bitcoin Reserves

If the forfeiture is approved, the recovered Bitcoin could significantly boost the US government’s digital asset holdings. In March, President Donald Trump signed an executive order to establish a strategic Bitcoin reserve, to be funded in part by assets seized through criminal and civil proceedings. White House crypto adviser David Sacks confirmed that forfeited Bitcoin would contribute to this reserve.

The timing of LuBian’s recent transfers has sparked speculation within the crypto community, as legal scrutiny intensifies around historic mining operations and the shadowy movement of dormant funds.