Behind Chen Zhi's Arrest: 127,000 BTC and the Great Power's Bitcoin Battle

Prince Group founder Chen Zhi was arrested in Cambodia and deported back to China for investigation. Behind this news lies a deeper story. This is not only a criminal case but also a real-world demonstration of the US “Strategic Bitcoin Reserve” plan. According to the latest reports, the U.S. Department of Justice had already initiated asset forfeiture actions against Chen Zhi as early as October 2025, with approximately 127,000 bitcoins under his name becoming a focal point of contention. This incident has elevated the security concerns surrounding crypto assets to a new level.

Event Overview: From Cambodia to China

According to recent reports, Chen Zhi was deported back to China after being arrested in Cambodia for investigation by relevant authorities. As the founder and chairman of Prince Group, Chen Zhi’s arrest involves cooperation across multiple jurisdictions.

The case has attracted attention not only because of the identities of those involved but also due to the international law enforcement background behind it. The U.S. Department of Justice had already filed criminal and civil asset forfeiture actions against Chen Zhi in October 2025, indicating that U.S. authorities had been monitoring his assets for some time.

Trump’s Bitcoin Reserve Plan

From Campaign Promise to Implementation

During his campaign, Trump announced loudly that he would have the U.S. hold 1 million bitcoins as a national strategic reserve. This was not just a slogan but a policy rapidly advanced after taking office. On March 6, 2025, Trump officially signed an executive order establishing the “Strategic Bitcoin Reserve” framework, requiring the federal government to convert bitcoins obtained through law enforcement forfeitures into national reserve assets.

Forfeiture as a Major Source

The U.S. government currently holds about 200,000 bitcoins, mostly obtained from law enforcement actions related to dark web transactions and ransomware cases. However, reaching the target of 1 million bitcoins requires a substantial increase in assets. This explains why the U.S. Department of Justice initiated the forfeiture of Chen Zhi’s 127,000 bitcoins.

New Risks to Crypto Asset Security

Geopolitical Factors Involved

This case reflects a new trend: crypto assets are no longer just a market issue but have become part of geopolitical strategies. U.S. government demand for bitcoins has shifted from passive confiscation to active recovery, changing the risk environment for crypto holders.

Holders Need to Reassess

This incident serves as a wake-up call for crypto asset holders. According to related information, U.S. law enforcement actions have already sparked market doubts about bitcoin security. Some believe that similar enforcement actions could become significant factors influencing bitcoin price volatility.

• Asset forfeiture risk: Large bitcoin holders face potential recovery by U.S. authorities
• Strengthened international cooperation: Cross-border asset recovery becomes more efficient through multi-national law enforcement collaboration
• Market confidence impact: Concerns over crypto security may lead to market fluctuations

Broader Implications

Not Just Chen Zhi

According to related reports, the U.S. government’s “oceanic fishing” efforts are not limited to Chen Zhi. Market rumors suggest that the U.S. is also paying attention to other large bitcoin holders, including certain political figures and their affiliates holding crypto assets. This indicates that the U.S. Bitcoin Reserve plan has broader ambitions.

Long-term Market Impact

Such enforcement actions could become new variables affecting bitcoin prices. When the market realizes that large holders face confiscation risks, overall market confidence could be impacted. Additionally, this may encourage more holders to diversify holdings and pursue cross-border transfers.

Summary

Chen Zhi’s arrest is essentially a microcosm of the U.S. “Strategic Bitcoin Reserve” plan. It not only reflects the Trump administration’s focus on bitcoin but also indicates that crypto assets are becoming a new arena of national strategic competition. For crypto holders, this means reassessing asset security and compliance. The involvement of geopolitical factors extends crypto asset risks beyond market dynamics into law enforcement and political realms. This trend is likely to continue influencing the medium-term trajectory of the crypto market.