China Accuses US of Hacking into Bitcoin Wallets, But Is There Any Credible Evidence?
China’s National Computer Virus Emergency Response Center has recently accused the United States of carrying out a hacking operation on LuBian Bitcoin wallets in 2020, resulting in the theft of approximately 127,000 BTC. However, Western research suggests that the incident was likely caused by a random number recognition error in the wallet, rather than a state-sponsored hacking operation.
The LuBian Bitcoin exploit occurred on December 28-29, 2020, when a large number of BTC were withdrawn from wallets connected to the LuBian mining pool. According to Cryptoslate, the wallets were created using software that provided MT19937 with only 32 bits of entropy, making them vulnerable to brute force attacks.
Open Source Forensics on the LuBian Drain
Independent blockchain forensics groups, such as Arkham and MilkSad, have conducted extensive research on the LuBian exploit. Their findings suggest that the wallets were drained due to a weakness in the random number generator used to create the wallets, rather than a sophisticated hacking operation.
The research team at MilkSad discovered that the wallets were created using a software that provided MT19937 with only 32 bits of entropy, reducing the search space to approximately 4.29 billion seeds. This made it possible for an attacker to brute force the wallets and gain access to the funds.
What the Forensic Records Show About the LuBian Exploit
Despite the accusations made by China’s National Computer Virus Emergency Response Center, there is no credible evidence to suggest that the US government was involved in the hacking operation. The forensic records show that the wallets were drained due to a weakness in the random number generator, and the subsequent movement of the funds can be explained by the seizure of the assets by US authorities.
The US Department of Justice has filed a complaint to forfeit the approximately 127,271 BTC, which are believed to be proceeds of suspected fraud and money laundering related to Chen Zhi and the Prince Group. The assets are currently in US custody, and there is no evidence to suggest that the US government was involved in the initial hacking operation.
Conclusion
In conclusion, while China’s National Computer Virus Emergency Response Center has accused the US of hacking into Bitcoin wallets, there is no credible evidence to support this claim. The forensic records suggest that the LuBian exploit was likely caused by a weakness in the random number generator used to create the wallets, rather than a state-sponsored hacking operation.
For more information on this topic, please visit Cryptoslate.
