A major scandal has recently erupted in the crypto world. Cambodian Prince Group boss Chen Zhi has been arrested and directly deported back to China for investigation. Once the news broke, Bitcoin instantly entered a decline mode, with the market dropping straight to 80,000, causing over 120,000 liquidations across the entire network.

The underlying logic of this incident is very important. Chen Zhi is not just a businessman; he operates the "Prince Group" — on the surface involved in real estate and finance, but in reality running over 10 scam parks. They lure labor through fake recruitment, forcing them to participate in cryptocurrency scams, with daily illegal earnings reaching $30 million. This operational system has already collapsed — the US Department of Justice previously confiscated 127,000 Bitcoins from him, worth $15 billion, setting the record for the largest crypto asset seizure in US history.

The key point here is: what the US confiscated is only the tip of the iceberg. Chen Zhi's deportation back to China is the real "liquidation moment." Prince Bank has already ceased operations and entered liquidation, and the Huishang Wallet, deeply tied to it, has also shut down. These two platforms hold a large amount of involved crypto assets, and during the liquidation process, a massive sell-off pressure will inevitably be released, impacting the market.

From a regulatory perspective, this operation marks a strong crackdown on crypto black industry worldwide. Similar chain reactions will continue to occur, and the market will need time to absorb these liquidity shocks. Short-term adjustments may still continue.