"The first person of stablecoins in China" returning? Zhao Dong is rumored to have appeared in the United States, and Guo Hongcai's prison photo has sparked heated discussions.

On September 10, well-known investor Guo Hongcai (Chandler Guo) shared a photo with heavyweight figure Zhao Dong from the crypto world on social media, captioning it "Uncle Dong, long time no see." The photo shows Zhao Dong appearing in the United States, suspected to have been released from prison. This OTC pro, who was once hailed as the "number one stablecoin person in China," was arrested in 2020 for involvement in Money Laundering and aiding in the crime, and was sentenced to seven years in prison in 2022. His sudden appearance now has sparked heated discussions in the crypto world.

From Startup Café to Bitcoin Whale

Zhao Dong was a co-founder of Moji Weather in his early years, and later started his second venture at "Garage Coffee" in Beijing, where he met crypto world veterans such as Wu Gang, Li Lin, Li Xiaolai, Bao Er Ye, and Du Jun.

In 2013, he bought his first Bitcoin on the recommendation of a friend, catching the surge in coin prices that year, and his net worth once exceeded 100 million. At his peak, it was reported that he held 10,000 Bitcoins (approximately 1/2100 of the total global supply), which, based on today’s price, is worth over 1.2 billion dollars.

Liquidation, Debt, and Off-Exchange Trading Comeback

However, leveraged trading caused Zhao Dong to liquidate 9,000 bitcoins in one day, with debts exceeding 60 million RMB. To repay the debts, he shifted to over-the-counter (OTC) trading, starting with small transactions, gradually paying off the debts and rebuilding his assets.

In 2016, he became a shareholder of the Bitfinex exchange due to the hacking incident and established a close relationship with Tether, the issuer of USDT, and was once regarded as the representative figure of Tether in the Chinese-speaking world.

Arrested in 2020, sentenced in 2022

In June 2020, Zhao Dong was taken away by the Hangzhou police due to his involvement in the illegal virtual asset settlement case of the "Everyday Up" running score platform. The platform was linked to overseas gambling websites and a fund flow of 3.1 billion yuan. Zhao Dong was accused of converting the digital assets involved in the case into fiat currency and profiting from the dividends.

In 2022, the Supreme Procuratorate announced that he was sentenced to seven years in prison for Money Laundering and aiding in the crime, and was fined 2.3 million yuan. After that, he completely disappeared from the public eye.

appears in the United States, sparking speculation

The photo that Guo Hongcai recently showed is said to have been taken in "Crypto Valley". Zhao Dong is all smiles, sparking heated discussions in the community. Some believe this is a recent photo, indicating that he has been released early and appeared in the United States; others doubt it is an old photo resurfaced, suggesting that he is still serving his sentence.

Regardless of the truth, veteran players in the crypto world generally express that they would be happy for this influential figure in the stablecoin and Bitcoin space if he could really come back.

Conclusion

The story of Zhao Dong almost encapsulates the ups and downs of the Chinese crypto world over the past ten years—from entrepreneurial success and getting rich from Bitcoin, to being liquidated and in debt, then making a comeback through over-the-counter trading, and finally being imprisoned due to his involvement in a case. Now, his sudden reappearance has sparked endless speculation from the outside world. If he really returns to the market, he might once again become the focal point of the crypto world, and even reshape part of the Chinese-language encryption market.