A Significant Uncovered Theft in the Cryptocurrency Industry: Over 127,000 Bitcoins Stolen
Recent investigations by blockchain intelligence firm Arkham Intelligence have revealed a troubling incident within the cryptocurrency sector: over 127,000 Bitcoins, currently valued at approximately $14.5 billion, were stolen from the LuBian mining pool in 2020. Surprisingly, this theft went undetected for nearly five years.
This incident is now recognized as the largest theft in cryptocurrency history, eclipsing the notorious Mt. Gox hack. At the time of the theft, the value of the stolen Bitcoins was about $3.5 billion, but the recent surge in Bitcoin prices has dramatically increased their worth.
One particularly noteworthy aspect of this case is that the hackers refrained from moving, laundering, or spending any of the stolen assets for half a decade, which contributed to their ability to remain undetected.
Arkham’s investigation identified a critical security flaw in the LuBian mining pool’s infrastructure: their private key generation relied on a mere 32 bits of entropy, which is considered highly insecure. This vulnerability enabled attackers to perform brute-force password attacks using standard gaming hardware.
As a result of the breach, over 5,000 digital wallets were compromised, leading to the significant depletion of LuBian’s Bitcoin reserves. Furthermore, just months after the theft, the LuBian mining pool vanished from the network entirely, contradicting its previous claims of being the “most profitable and secure mining pool.”
This incident serves as a stark reminder of the importance of cybersecurity practices within the cryptocurrency industry. It highlights the potential for significant security oversights, even among well-known entities. While the individual behind the LuBian theft has been apprehended, the incident raises concerns about the potential for other unnoticed vulnerabilities within the sector.
