China claimed the US government stole 127,271 bitcoin from alleged scam leader Chen Zhi and later presented it as a law enforcement seizure.
US prosecutors announced the confiscation in October 2025, calling it the largest cryptocurrency forfeiture on record.
Chinese authorities said the bitcoin disappeared during a cyberattack on Chen’s mining operation in December 2020.
State media reported the funds remained untouched for nearly four years before moving to wallets later linked to the US government.
China’s National Computer Virus Emergency Response Center said the inactivity was inconsistent with typical criminal hackers.
The operational pattern is more consistent with a state-level hacker organisation.
The agency said.
Beijing questioned how US authorities obtained Chen’s private keys, noting the indictment offers no explanation.
The US Justice Department has not publicly addressed China’s allegations or outlined plans to compensate victims.
Chinese media described the seizure as “black eating black,” accusing Washington of profiting from criminal assets.
Chen Zhi was extradited from Cambodia to China in January and now faces prosecution for large-scale fraud operations.
At the time of reporting, Bitcoin price was $91,928.23.