Bitcoin Theft Allegations Stir Geopolitical Waters As XRP ETF Nears Nasdaq Debut
Bitcoin Theft Allegations Stir Geopolitical Waters As XRP ETF Nears Nasdaq Debut
Geopolitical tensions in the crypto sphere have escalated as China's cybersecurity agency has accused the US government of orchestrating the theft of approximately $13 billion in Bitcoin (BTC) in 2020. This alleged state-level operation involved 127,272 BTC from a mining pool, adding a contentious layer to cyber relations between the two nations, with the US government yet to disclose its methods of confiscation.
Simultaneously, the cryptocurrency market is abuzz with positive developments for XRP, as Canary Capital has filed formal paperwork (Form 8-A) to allow an XRP-backed ETF to trade on Nasdaq. This significant regulatory step triggers a 20-day countdown to effectiveness, paving the way for a potential listing under the ticker XRPC. The news has generated strong interest, with initial price rallies for XRP, despite a subsequent modest dip.
China Alleges US Government Orchestrated $13 Billion Bitcoin Theft
In a significant development that underscores growing cyber tensions, China's cybersecurity arm has publicly accused the US government of a 'state-level hacker operation' resulting in the theft of approximately $13 billion in Bitcoin (BTC). The report, citing Bloomberg, details the incident as the expropriation of 127,272 BTC from the LuBian Bitcoin mining pool in December 2020, marking one of the largest crypto heists in history.
The Chinese National Computer Virus Emergency Response Center suggests the discreet and delayed movement of the stolen Bitcoin is indicative of governmental involvement. They link the stolen BTC to tokens later seized by the US government, which authorities claim are connected to Chen Zhi, chairman of the Cambodian conglomerate Prince Group, who was accused by the US of wire-fraud and money-laundering in October. However, the US government has notably withheld details on how and when the Bitcoin was confiscated.
Federal prosecutors in the Chen case have refrained from disclosing their methods for gaining control of the Bitcoin, following the Department of Justice’s civil forfeiture complaint for 127,271 BTC – the most substantial forfeiture action undertaken by the US government. These allegations are part of a broader trend of China accusing the US of hacking activities, including exploiting Microsoft Exchange servers and cyberattacks on the National Time Service Center.
A lawyer representing Chen Zhi has criticized the US government's claims as 'seriously misguided' and is working with cryptocurrency experts to trace the stolen Bitcoin. At the time of reporting, BTC was trading at $102,550, reflecting a 3% loss in the preceding 24 hours.
XRP ETF Takes Flight Towards Nasdaq Listing
In other major crypto news, Canary Capital has filed formal paperwork that could pave the way for an XRP-backed ETF to commence trading on Nasdaq within days. On November 10, 2025, Canary submitted a Form 8-A to the US Securities and Exchange Commission, registering the fund’s shares under the Exchange Act and initiating a regulatory countdown towards a potential listing.
The shares are anticipated to trade under the ticker XRPC, pending Nasdaq's listing approval and the conclusion of the regulatory waiting period. A key legal mechanism has been activated with Canary's removal of a delaying amendment from its S-1 prospectus, which triggers a 20-day countdown to automatic effectiveness unless the SEC intervenes. This has led some market participants to target a November 13 listing date.
Canary Capital CEO Steven McClurg expressed bullish sentiment, suggesting an XRP ETF could potentially double the gains observed by Solana in its first week, citing strong interest in XRP reflected by its market capitalization and trading activity. The fund details reveal a management fee of 0.50% and name familiar custodians such as Gemini Trust Company and BitGo Trust Company, with US Bank serving as the cash custodian.
Earlier SEC filings indicated XRP's aggregate market value was approximately $173 billion as of October 8, 2025, placing it among the top five digital assets by market cap. At the time of writing, XRP's market cap stood at over $146 billion. The news of the filings initially spurred a sharp positive price reaction for XRP, with intraday gains of up to 8% reported, although the altcoin subsequently shed 3.5% in the last 24 hours.