Prince Bank clearing has started, and the final liquidation of Chen Zhi's $15 billion crypto empire has begun.

The National Bank of Cambodia officially announced yesterday that Taizi Bank has entered liquidation. This is not only the closure of a financial institution but also the latest development in a multi-national crackdown on transnational scam networks. Founder Chen Zhi of the Taizi Group was arrested and repatriated to China on January 6th, and his crypto asset empire is being gradually frozen and confiscated worldwide.

Direct Impact of Taizi Bank’s Liquidation

Details of the liquidation measures

According to the announcement from the National Bank of Cambodia, Taizi Bank has been officially placed into liquidation effective immediately, which means:

• Prohibition on opening new accounts or accepting new deposits
• Suspension of approval and issuance of all types of commercial and personal loans
• No further new banking activities allowed
• Full takeover of operations and asset disposal by Morison Kak MKA auditing firm

These measures may seem like routine bank liquidation procedures, but given Taizi Bank’s special background, it signifies that a financial institution blending legitimate business and illegal fund flows is being systematically stripped. According to the latest news, funds within Taizi Bank will be prioritized for repayment to legitimate depositors, implying that a large amount of involved assets may face long-term freezing or eventual confiscation.

Dilemmas for depositors and business partners

Taizi Bank was once an important player in Cambodia’s financial system, with a large number of local depositors and corporate clients. The liquidation process means that these clients’ funds will be tightly restricted, making large withdrawals or transfers difficult in the short term. Meanwhile, companies relying on loans from Taizi Bank will face financing disruptions.

Asset Disposition Overview Post-Arrest of Chen Zhi

Comparison of asset freeze scales across countries

In October 2025, the U.S. Department of Justice froze 127,000 BTC belonging to Taizi Group, setting the largest crypto asset forfeiture record in U.S. judicial history. This means that Chen Zhi’s core assets accumulated through scam networks are now under U.S. government control. The final disposition of these assets will serve as a significant case in international judicial cooperation.

Timeline overview

• October 2025: U.S. DOJ freezes 127,000 BTC
• December 2025: Chen Zhi’s Cambodian nationality revoked by royal decree
• January 6, 2026: Chen Zhi, Xu Jiliang, Shao Jihui arrested in Cambodia
• January 7, 2026: The three are deported to China
• January 9, 2026: Cambodia’s central bank announces Taizi Bank’s entry into liquidation

This timeline reflects a clear logical sequence: the U.S. first seizes crypto assets, Cambodia revokes nationality protections, China arrests and repatriates individuals, and finally Cambodia initiates financial institution liquidation. Each step intensifies restrictions on Chen Zhi and his group.

True Scale of the Scam Network

Taizi Group’s Black Industry Empire

According to U.S. DOJ investigations, the scale of Taizi Group’s scams far exceeds common perceptions:

• Park staff size: 5,000 to 10,000 people
• Scam accounts registered: over 700,000
• Main methods: lure labor through “high-paying recruitment,” force participation in crypto “pig butchering” scams
• Daily illegal income: about $30 million

These figures indicate that Taizi Group is not just a financial institution but a massive transnational scam factory. The existence of Taizi Bank largely serves as a channel for money laundering and circulation for this scam network. Bank liquidation signifies the formal disconnection of this laundering network.

Market Chain Reactions and Regulatory Signals

Short-term volatility in the crypto market

Following the announcement of Chen Zhi’s arrest, Bitcoin immediately began to decline, with significant market fluctuations. This reflects investors’ reassessment of several issues:

• Risks of large-scale crypto asset confiscation by governments
• The relationship between exchanges, financial institutions, and illegal funds
• Regulatory authorities’ crackdown on transnational scam networks

What makes this event particularly notable is that it involves not only the arrest of a single scammer but also a systematic purge of a transnational gray industry chain by multiple governments. This coordinated action itself sends a strong regulatory signal.

The simultaneous halt of Huixiang Wallet

Taizi Group’s Huixiang Wallet has also ceased operations, further cutting off the flow of scam funds. Wallet suspension may freeze funds for millions of users, accelerating the disintegration of the scam network.

Future Outlook on Asset Liquidation

Possible paths for the disposal of assets across three countries

Based on current information, the disposal of Taizi Group’s assets will follow the “territorial principle”:

• USA: Already confiscated 127,000 BTC, the rights to dispose of these assets are established
• Cambodia: Taizi Bank’s assets will be prioritized for repayment to legitimate depositors; remaining assets may be used to compensate victims
• China: After Chen Zhi’s deportation, his assets within China and compensation for domestic scam victims will become judicial priorities

The liquidation process of Taizi Bank is expected to last several months to a year, during which asset valuation, creditor confirmation, and payout arrangements will be gradually carried out. The prospects for victim compensation depend on the final residual assets after liquidation.

Demonstration effect on other gray financial institutions

The liquidation of Taizi Bank serves as a direct warning to similar institutions. Those with a mix of legitimate shell companies and illegal fund flows now face increased regulatory pressure. Successful multi-national law enforcement cases will set a standard model for future crackdowns on transnational scam networks.

Summary

The liquidation of Taizi Bank is not an isolated financial event but a crucial step in the systematic eradication of transnational scam networks by multiple governments. Chen Zhi’s rapid collapse of his financial empire—from arrest to the gradual disintegration—took less than a month. This speed reflects high coordination among law enforcement agencies and their emphasis on such cases.

For the crypto market, the core significance of this event is that large-scale illegal crypto assets have become a reality through government confiscation, which will alter how risk assets are priced. In the future, crypto assets or platforms associated with gray industries will face stricter scrutiny and higher risk premiums. The liquidation of Taizi Bank is just the beginning; the full story of the entire Taizi Group’s asset disposal continues to unfold.