Mr. Bao's post has stirred up a thousand layers of waves; the surface of the cryptocurrency world is tumultuous, but beneath it lurks even more giant crocodiles.
"I have an old friend in the cryptocurrency world who has been 'fished out at sea'... After half a year of turmoil, he finally came out safe." On December 21, the vague revelation from the cryptocurrency veteran Mr. Bao (Guo Hongcai) instantly ignited curiosity and panic throughout the entire crypto circle.
In just a short sentence, there lies a game of funds worth tens of billions of dollars, a six-month ordeal of disappearance, and a new chapter in the grudges and entanglements of Bitmain's two founders, Jihan Wu and Micree Zhan.
'Deep-sea fishing' is a tacit code among insiders, pointing to unconventional cross-border regulatory interventions, even involving asset freezes and personal control. This time, it points to Bitmain co-founder Jihan Wu.
01 Crypto panic, undercurrents of Bitmain's control
When the post by 'Old Master Bao' stirred up a storm in the crypto circle, all clues pointed to the same person, Bitmain co-founder Jihan Wu. It is rumored that this technical core experienced a 'deep-sea fishing' operation for as long as half a year, involving amounts as high as several billion USD.
What’s even more intriguing is that the timing of the rumors about Jihan Wu coincides with a sudden disappearance of a large amount of computing power in Xinjiang. As one of the domestic power aggregation areas, Xinjiang has countless links to Bitmain’s business, and this unusual trend further corroborates the possibility of the rumors.
Different versions of the 'ending' are circulating in the circle: some say Jihan Wu was released after paying a fine of up to 1 billion USD; others claim he has 'gone off the grid' to Indonesia and is currently missing.
This is not just a simple personal encounter but a sequel to the internal struggles of Bitmain. In 2013, technical giant Jihan Wu from the Chinese Academy of Sciences and financial expert Wu Jihan from Peking University jointly founded Bitmain, controlling 70% of the global Bitcoin computing power at one point, valued at hundreds of billions USD.
02 'Deep-sea fishing': A new nightmare for crypto big shots?
'Deep-sea fishing' originally referred to the profit-driven cross-provincial law enforcement by some judicial authorities. In the crypto world, this concept has upgraded to cross-border regulatory actions involving huge amounts of money and complex international judicial cooperation.
A typical case is the experience of Chen Zhi from the Cambodian Prince Group. In October 2025, the U.S. Department of Justice seized his 127,000 Bitcoins (worth about 15 billion USD) and accused him of operating a 'cyber fraud empire'. These Bitcoins were actually the assets stolen from the Prince Group in 2020 from the Lubian mining pool.
This is more like the U.S. government's 'black eats black': first, using national-level hacking methods to steal Bitcoin, then 'confiscating and laundering' through legal procedures, ultimately enriching the U.S. Treasury’s Bitcoin reserves.
Currently, the assets in wallets labeled 'U.S. Government' have exceeded 30 billion USD, with Bitcoin accounting for as much as 96%.
03 Three main sources for virtual currency investors becoming targets of 'deep-sea fishing'
Why are people in the crypto circle easily becoming targets? The first reason is the ambiguous legal status of virtual currencies. Our country clearly states that 'virtual currencies do not have the same legal status as legal tender,' but some judicial rulings recognize their property attributes.
This ambiguity creates space for selective law enforcement. Investors often hesitate to assert their rights due to 'guilt', yielding to law enforcers and ultimately losing their litigation rights in silence.
Virtual currency investors hold huge assets but have weak risk resistance. Unlike private entrepreneurs, they usually lack legal knowledge and social resources, making them ideal targets for law enforcement.
More importantly, the wave of global tax transparency has become irreversible. As of March 2025, 126 countries and regions around the world have signed and implemented the CRS (Common Reporting Standard), recovering over 80 billion USD in taxes through information exchange just in 2024.
The Golden Tax Phase IV and CRS system jointly construct a regulatory closed loop of 'domestic data penetration + overseas information return', leaving almost no place for offshore assets to hide.
04 How can crypto people avoid becoming the next 'fishing target'?
In the face of an increasingly complex regulatory environment, crypto individuals need to prepare for the future. First, clarify the boundaries between legal and illegal. Simply holding virtual currencies is not illegal, but participating in trading and speculation is explicitly prohibited.
Holders should properly retain proof of asset sources and are strictly prohibited from participating in any form of virtual currency trading activities, including trading on domestic and foreign exchanges, over-the-counter transactions, mining, etc.
Strengthening asset storage security is crucial. Prioritize using decentralized hardware wallets, properly safeguard private keys, and be cautious about receiving assets involved in cases. When faced with regulatory inspections, cooperate honestly and prepare proof of asset holding trajectory.
For investors with overseas income, it is essential to fulfill reporting obligations. Even if taxes have been paid abroad, they still need to report to Chinese tax authorities and apply for tax credits with overseas tax payment certificates. This step is indispensable; otherwise, it still constitutes a violation.
Global regulation is forming a concerted effort. In 2025, the Ministry of Public Security issued regulations on jurisdiction for cross-provincial corporate crime cases, which somewhat curbed 'deep-sea fishing', but cases in the crypto world still present risks due to numerous jurisdictional connection points involving cybercrime.
Just as this article was completed, the price of Bitcoin fluctuated violently again. That big shot who came out of peace may be silently sorting through half a year's experiences; meanwhile, the new power dynamics of Bitmain are quietly reshaping in this storm.
The global regulatory network is tightening. Blockchain analysts point out: 'The anonymity of cryptocurrencies is rapidly dissolving, and there are no real safe zones.'
In this ocean without visible shores, the next 'deep-sea fishing' may have already begun.
Do you think this big shot who came out of peace is really completely safe? Feel free to share your views in the comments.
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