Lubian Transfers Dormant BTC Amid DOJ Action

On October 15, nearly three years after remaining idle, the Lubian wallet transferred 11,885 Bitcoins (valued at $1.34 billion) to a new address.

The U.S. DOJ seeks forfeiture of 127,271 Bitcoins linked to the Lubian mining pool’s attack, connecting the case to global cybercrime activities by the Prince Group.

DOJ Cybercrime Investigation Affects Bitcoin Market

The U.S. Department of Justice has linked Lubian’s wallet movement to broader cybercrime investigations involving the Prince Group. This event follows Lubian’s historical mining activities in China and Iran before the pool’s sudden disappearance in early 2021. The wallet’s significant bitcoin transfer came shortly after the DOJ announced its intentions to seize 127,271 BTC connected to the Prince Group’s unlawful activities. While the exact motives behind the wallet transfer remain unclear, its timing aligns with increased legal pressure. Some market analysts suggest these actions could shift liquidity and price dynamics in the cryptocurrency markets, especially if the seized coins are sold.

Despite these significant actions, reactions from major public figures in the cryptocurrency industry have been limited. No statements have emerged from Chen Zhi, Chairman of the Prince Group, nor from Lubian’s leadership or technical founders. This lack of response has left the community to rely primarily on official documents and on-chain data.

“No statements or responses found as of today.” – Chen Zhi, Chairman, Prince Group

Historical Context, Price Data, and Expert Analysis

Did you know? Lubian’s wallet previously held dormant bitcoins even after the December 2020 hack, reflecting evolving strategies in asset management and legal defense.

Bitcoin (BTC) continues to dominate the cryptocurrency market with a value of $111,831.64. CoinMarketCap data shows a market capitalization of $2.23 trillion and a market dominance of 58.39%. Despite this recent turbulence, Bitcoin’s price reflects only marginal 24-hour growth at 0.60%, with larger drops over longer timeframes: 7-day at -8.94%, 30-day at -2.70%, 60-day at -4.82%, and 90-day at -4.94%. Trading volume is noted at $82.41 billion, according to CoinMarketCap, highlighting active market interest amidst ongoing governmental actions.

Coincu research indicates that future regulatory moves could lead to increased scrutiny on dormant wallet activities and possibly influence technological shifts in wallet security. Historical trends suggest a cautious outlook, as legal developments around cryptocurrency custody continue to unfold, impacting both market liquidity and investor confidence.