Chinese Cybersecurity Bodies Accuse U.S. of Using ‘Technological Hegemony’ to Seize Global Crypto Assets

Feb 26, 2026 at 04:15 PM

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Lanka Leader

Several Chinese cybersecurity institutions on Thursday released a report accusing the United States of leveraging its technological and regulatory influence to confiscate large amounts of global virtual currency assets.

The report, titled “Top Player: Analysis of Global Virtual Currency Assets Extortion under the U.S. Technological Hegemony,” was jointly issued by the National Computer Virus Emergency Response Center, the National Engineering Laboratory for Computer Virus Prevention Technology, 360 Digital Security Group, and Antiy Labs.

According to the report, between 2022 and 2025 U.S. authorities confiscated more than $30 billion worth of virtual currency assets worldwide through various enforcement actions. It claims that one case alone — involving businessman Chen Zhi — accounted for approximately $15 billion, or half of the total cited amount.

The study analyzes high-profile cases including Chen Zhi and Zhao Changpeng, founder of the cryptocurrency exchange Binance. The authors argue that these cases reflect what they describe as a “closed-loop strategy” of technological surveillance, regulatory coordination and enforcement action by U.S. authorities.

Market Significance of Digital Assets

In an interview with the state-affiliated Global Times, Du Zhenhua, a senior engineer at the National Computer Virus Emergency Response Center, cited international statistics indicating that as of January 2026 the global digital currency market capitalization stood at approximately $2.73 trillion. Of that, Bitcoin accounted for about $1.57 trillion.

Du noted that the figure represents nearly half the estimated value of global official gold reserves, which he said totaled about $5.83 trillion during the same period, underscoring the growing financial weight of digital assets. This indicates that the market value of virtual currency assets has already reached approximately 47 percent of the total value of global official gold reserves — nearly half — making them a significant new financial asset. 

He alleged that the U.S. uses cyber operations, regulatory measures and long-arm jurisdiction to incorporate global virtual currency transactions into its enforcement framework, enabling large-scale asset seizures.

Chen Zhi and Binance Cases

The report highlights the case of Chen Zhi, who Chinese authorities have identified as the head of a cross-border gambling and fraud syndicate. According to China’s Ministry of Public Security, Chen was extradited from Cambodia to China earlier this year and is under investigation for multiple alleged crimes.

The report also notes that in October 2025, the U.S. Attorney’s Office for the Eastern District of New York announced criminal charges against Chen and the confiscation of approximately 127,000 bitcoins allegedly under his control, valued at around $15 billion at the time — described as one of the largest virtual asset seizures in U.S. judicial history.

Separately, the report examines U.S. legal actions against Binance and its founder Zhao Changpeng between 2023 and 2025. The case concluded with Binance agreeing to pay $4.3 billion in penalties to resolve investigations by U.S. authorities.

Du argued that such cases demonstrate how Washington first applies domestic regulatory frameworks to global digital asset platforms and then uses enforcement actions and fines to assert regulatory dominance.

Allegations of Cyber Operations

The report further claims that U.S.-backed hacker groups carried out targeted cyberattacks on more than 20 major cryptocurrency exchanges worldwide between 2023 and 2025. The alleged tactics included backdoor implantation, spear-phishing and supply chain infiltration.

Xiao Xinguang, founder of Antiy Labs, was quoted as saying that some of the reported cyber activities appeared to coincide with enforcement actions by the U.S. Department of Justice and the Treasury Department’s Office of Foreign Assets Control.

The report also cited U.S. Treasury data as indicating that enforcement actions in the virtual asset sector generate substantial fiscal revenue, while reinforcing the global role of the U.S. dollar in digital finance.

U.S. authorities have previously said that cryptocurrency seizures and penalties are part of efforts to combat fraud, money laundering and sanctions evasion. The U.S. government has not responded to the specific allegations outlined in the Chinese report.

The publication of the study reflects growing geopolitical tensions over digital finance, regulatory authority and the evolving role of cryptocurrencies in the global financial system.