The Myth of Bitcoin's "Decentralization" Shattered: The Truth Behind the U.S. Seizing 100,000 BTC at the Push of a Button
Recently, the U.S. Department of Justice seized 127,271 bitcoins from Fujian businessman Chen Zhi, triggering a flash crash in Bitcoin, with over 1.6 million positions liquidated within 48 hours and a market cap evaporating by over 100 billion dollars. This incident completely shattered the myth of Bitcoin's "decentralization" and "anti-censorship".
Why is Bitcoin's touted "decentralization" so vulnerable in front of the U.S.? Three main reasons reveal the answer:
- Withdrawal must pass KYC: Even if it's anonymous on the chain, cashing out requires entering regulated exchanges, and real-name authentication along with bank statements expose one's identity.
- On-chain traceability: "On-chain detectives" can accurately identify Bitcoin address ownership through clustering analysis, AI, and other technologies.
- Physical law enforcement crushes: The FBI obtained private keys from Chen Zhi through a search warrant, proving that no matter how strong the encryption, it can't withstand offline law enforcement.
This upheaval demonstrates that Bitcoin's "decentralized freedom" actually operates within the framework of the dollar system, and the so-called "anti-censorship" is nothing but an illusion.
