China Accuses U.S. of Stealing 127,000 BTC – How Will the Dispute End?

China has accused the United States of stealing 127,000 Bitcoin (BTC) worth approximately $13 billion. The alleged theft dates back to 2020, when BTC was reportedly siphoned from a Chinese mining pool. The claim adds a new layer of tension to the already strained relationship between the two superpowers in the digital asset space and raises sharp questions about the role of state-sponsored actors in the crypto world.

127,000 BTC Vanish From a Chinese Mining Pool In 2020, a major Chinese mining pool reportedly suffered a massive security breach. Hackers managed to steal 127,000 BTC — worth around $1 billion at the time. While the initial reports pointed to a conventional hack, China now suggests that the U.S. government may have been directly involved. Chinese officials claim the bitcoins were either seized or stolen by U.S. state actors, effectively turning the event into a geopolitical incident rather than a simple cybercrime. This accusation raises troubling questions about the safety of digital assets and the possibility that global powers could interfere with or appropriate such assets through covert operations. Whether through secret intelligence actions, direct asset seizures, or state-backed hacking groups, the dispute reflects an escalating militarization of the digital currency landscape. Back in 2020, Bitcoin traded between $7,000 and $10,000 per coin. With today’s price levels, the stolen BTC is now valued at around $13 billion.

Which Countries Hold the Most Bitcoin? Nations worldwide are accumulating Bitcoin for various reasons — from strategic investment and economic positioning to broader interest in the future of digital money. Although many governments do not publicly disclose their full BTC holdings, several countries are known to possess significant reserves.

United States The U.S. is believed to be one of the largest Bitcoin holders globally, mainly due to large-scale government seizures during criminal investigations. In 2020, the U.S. confiscated over 69,000 BTC related to the Silk Road case — valued at $1 billion at the time. Additionally, major U.S.-based institutions such as MicroStrategy, Tesla, and Grayscale further increase the country’s overall Bitcoin exposure. By the end of 2021, U.S. government reserves were estimated at 198,000 BTC.

China Despite China’s historically harsh stance on cryptocurrency mining and trading, the country is still regarded as a major Bitcoin holder. Even after shutting down domestic mining firms in 2021, Chinese companies had already accumulated large reserves over many years. China is estimated to hold around 194,000 BTC, placing it among the top global holders.

Other Countries and Institutions Bitcoin is also widely held by other nations and major institutions: El Salvador — the first country to adopt Bitcoin as legal tender, currently holds around 7,475.4 BTC as part of its national strategy.Ukraine — through a combination of donations and government initiatives, the country has amassed 46,351 BTC, often used for defense funding during wartime.MicroStrategy — the largest corporate holder with over 124,000 BTC.Grayscale — custodian of more than 650,000 BTC through its Grayscale Bitcoin Trust (GBTC), one of the largest BTC vehicles in the world. These holdings underscore Bitcoin’s growing relevance on the geopolitical stage. As more countries and institutional players accumulate BTC as a store of value and strategic asset, Bitcoin’s importance — both economically and politically — will continue to rise.

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