A major report concerning the cryptocurrency sector has drawn widespread attention. On February 26, a joint analysis released by China's National Computer Virus Emergency Response Center and other departments detailed how the United States leverages its technological dominance to expropriate global virtual currency assets. The cases involving Chen Zhi and Changpeng Zhao are highlighted as two prime examples, through which the U.S. has gained approximately $19.35 billion, equivalent to around 130 billion yuan.
It is important to note that virtual currencies are highly speculative, extremely volatile, and carry significant risks, frequently triggering large-scale liquidations. In the past 24 hours, Bitcoin surged by more than 9% at one point, nearing the $70,000 mark, while Ethereum jumped nearly 13%, briefly surpassing $2,100. However, by the time of reporting, gains for both Bitcoin and Ethereum had substantially retreated.
According to data from CoinGlass, nearly 160,000 traders were liquidated globally in the last 24 hours, with total liquidations across all exchanges approaching $600 million.
The cases of Chen Zhi and Changpeng Zhao resulted in nearly $20 billion in U.S. gains. On February 26, the National Computer Virus Emergency Response Center published an in-depth analysis titled "The Top Player: A Deep Analysis of Global Virtual Currency Asset Expropriation Under U.S. Technological Hegemony." The report examines typical cases, including those of Chen Zhi and Changpeng Zhao, starting from the technical background and security risks of blockchain. It systematically analyzes the process and technical details of how the U.S. uses its technological supremacy to seize global virtual currency assets, deconstructing its state-level cyber attack methods and underlying political motives to provide reference for nations confronting digital hegemony threats.
According to incomplete statistics, between 2022 and 2025, the United States confiscated global virtual currency assets worth over $30 billion through various legal cases. In the Chen Zhi case alone, assets seized by the U.S. amounted to $15 billion, accounting for 50% of the total. In the Changpeng Zhao case, the U.S. gained $4.35 billion.
The report indicates that the Chen Zhi and Changpeng Zhao cases are two emblematic examples of the U.S. employing technological hegemony to expropriate global virtual assets. These cases fully demonstrate the U.S. strategy of "technological breakthrough—regulatory support—agency enforcement," a closed-loop process marked by clear hegemonic characteristics in both logic and technical execution.
In October 2025, the U.S. Attorney's Office for the Eastern District of New York announced criminal charges against Chen Zhi, founder of Cambodia's Prince Group, including telecommunications fraud and money laundering. It also publicly declared the seizure of approximately 127,000 Bitcoins under his control, valued at about $15 billion at the time, setting a record for the largest virtual asset seizure in U.S. judicial history.
Under the pretext of combating cross-border fraud and money laundering, U.S. authorities hastily assembled so-called evidence, sidestepping the original source, to legitimize the confiscation of Bitcoins that were allegedly stolen from Prince Group through state-level hacking in 2020. This case exemplifies a "robbing the robber" tactic, where the U.S. exploits technical vulnerabilities to carry out cross-border asset seizures and impose technological bullying.
Separately, between 2023 and 2025, the United States pursued both civil and criminal actions against the globally prominent cryptocurrency exchange Binance and its founder Changpeng Zhao. The case concluded with Binance paying a $4.35 billion penalty—including $2.7 billion in disgorgement of illegal gains, $1.35 billion in civil penalties, and $150 million in personal fines—and Zhao receiving a pardon after signing a plea agreement. This case serves as another prime example of how the U.S. uses judicial dominance and technological surveillance to compel global virtual asset platforms to comply with its regulatory framework, achieving economic gains and exporting its rules.
During the investigation, U.S. authorities employed comprehensive technical surveillance measures to fully infiltrate and gather evidence from Binance's operational, user, and transaction data, showcasing their technological superiority in monitoring digital asset platforms. The enforcement logic displayed a clear pattern of "rule-setting—technical evidence gathering—penalty imposition," whereby the U.S. first extends its long-arm jurisdiction to global virtual asset platforms through domestic regulations, then uses technical means to document platform violations, ultimately imposing huge fines for economic benefit while forcing platforms to undergo compliance reforms, thereby strengthening U.S. rule-making power in the virtual currency sector.
Bitcoin and other virtual currencies rebounded, leading to 160,000 liquidations. Starting mid-week, as U.S. technology stocks stabilized and rebounded, investor risk appetite recovered. This optimistic sentiment was notably reflected in the virtual currency market.
After three consecutive days of declines, Bitcoin surged significantly. In the early hours of February 26 Beijing time, Bitcoin's price increase exceeded 9%, approaching $70,000, while Ethereum rose nearly 13%, briefly breaking above $2,100. Other virtual currencies also saw substantial gains: Solana increased over 16% at one point, and XRP rose more than 10%.
By the time of reporting, the gains in virtual currencies had significantly pulled back. Currently, Bitcoin is up over 2% to $68,000, Ethereum has risen 5% to $2,066, and Solana is up 4%.
This round of volatility again resulted in widespread liquidations. CoinGlass data shows that in the past 24 hours, total crypto contract liquidations reached $568 million, affecting nearly 160,000 traders. Of these, short position liquidations amounted to $438 million, while long position liquidations were $130 million.
Caroline Mauron, co-founder of Orbit Markets, commented, "This rally may reflect bargain-hunting after sustained selling. If Bitcoin reclaims the $70,000 level, the market narrative could shift."
Market observers pointed out that the rebound in crypto assets is closely linked to the stabilization of U.S. equities. Risk asset sentiment improved after U.S. President Trump defended economic performance yesterday. Previously, a U.S. Supreme Court ruling that the Trump administration lacked authority to impose so-called "reciprocal tariffs" under emergency powers law caused market turmoil. Trump subsequently shifted to other legal grounds, stating he would push for a 15% global tariff, which was a key factor behind the sharp decline in crypto markets earlier in the week. However, in his latest remarks, Trump did not mention digital assets.
Daniel Reis-Faria, CEO of ZeroStack, noted that recent U.S. market demand for crypto assets has been generally weak, but capital is rotating into altcoins, with some already outperforming Bitcoin. "Bitcoin now trades within a broader market system, so when liquidity tightens, volatility increases," he added.
Nevertheless, industry sentiment remains cautious. On February 5, Bitcoin plunged approximately 13%, its largest drop in nearly four years. The token has fallen nearly 50% from its all-time high of nearly $127,000 recorded in early October last year.
"After such a significant decline, investors should avoid overinterpreting recent gains," said Jake Ostrovskis, OTC trading head at Wintermute. Unless the token returns above $75,000, "it's hard to see many taking it seriously," he added.
Data from research firm Glassnode indicates that nearly 9 million Bitcoins, representing 45% of the circulating supply, are currently valued below their holders' purchase cost. This helps explain why each rally has been short-lived—trapped holders sell on any bounce, dampening upward momentum.
"I see parallels between the current situation and 2022, when a sharp decline was followed by months of sideways movement before the market turned to growth and reached new highs, which took over a year," said Alex Kuptsikevich, chief market analyst at FxPro.
The broader cryptocurrency market also faces pressure. According to CoinGecko data, the total market capitalization of cryptocurrencies has fallen more than 20% compared to a year ago.
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