LuBian Wallet Sparks $1.3B Bitcoin Frenzy After DOJ's $15B Seizure

A Bitcoin wallet tied to the Chinese mining firm LuBian jolted the crypto market by transferring nearly $1.3 billion in Bitcoin after a three-year dormancy.

This coincide with a U.S. Department of Justice (DOJ) announcement of a historic $15 billion BTC seizure case linked to illicit activities.

The wallet first moved 9,757 BTC, worth about $1.1 billion at the time, before transferring an additional 2,129 BTC, approximately $238 million, totaling 11,886 BTC valued at $1.3 billion amid current Bitcoin prices.

This activity was highlighted by blockchain analytics firms lookonchain and Arkham Intelligence, which connected the funds to the long-dormant LuBian wallet.​

DOJ Unveils Massive $15 Billion Bitcoin Seizure Linked to LuBian Less than a day before the Bitcoin transfer, the DOJ unveiled a forfeiture complaint targeting roughly $14.4 billion in Bitcoin linked to the Prince Holding Group, a Cambodia-based entity charged with large-scale crypto fraud schemes.

The group, led by Chen Zhi, allegedly used the proceeds to finance crypto mining operations, including LuBian, a major Bitcoin mining pool.​

According to the DOJ, these operations produced legitimate Bitcoin residues “dissociated from criminal proceeds,” complicating efforts to trace illicit origins.

The seizure marks one of the largest cryptocurrency forfeitures in U.S. history, with the assets now in government custody pending conviction outcomes related to money laundering and wire fraud charges against involved parties.​

Strategic Moves in a High-Stakes Environment

LuBian’s surprising wallet activity follows a 2020 hack that drained 127,426 BTC (about $3.5 billion then), with the moved 11,886 BTC matching the recovery wallet balances identified earlier by Arkham Intelligence.

Experts suggest the wallet moves may represent a defensive or strategic reallocation response to regulatory pressures from the DOJ's enforcement actions.​

Moreover, this shift occurs amid increasing governmental interest in cryptocurrency assets.

Earlier in 2025, President Donald Trump signed an executive order to establish a strategic Bitcoin reserve, envisioned to be funded by cryptocurrencies seized through forfeiture proceedings, potentially including recovered LuBian assets.

White House crypto officials emphasize this reserve as a mechanism to leverage forfeited digital assets under federal control.​

This $1.3 billion transfer catapults LuBian back into the limelight amid rising regulatory scrutiny, raising critical issues about the intersection of illicit crypto activities, law enforcement actions, and the global Bitcoin mining industry.