The Reasons, Risks, and Response Strategies for Bank Card Freezing Caused by Crypto Assets Sales and "Assisting Investigations"

Recently, some Crypto Assets holders have encountered bank card freezes after selling digital assets (especially USDT), and even received calls from the police requesting "assistance with an investigation." This article will explore the causes, potential risks, and coping methods of this phenomenon in detail.

Why does simply selling Crypto Assets cause problems?

First, it is important to clarify a key premise: in our country, simply holding Crypto Assets is not illegal. Currently, our country has not yet issued laws, State Council administrative regulations, or administrative orders directly targeting Crypto Assets. Although there are normative documents such as "Announcement 9.4" and "Notice 9.24", these documents are of a lower level and do not constitute a "prior law" in the sense of criminal law, and they do not explicitly prohibit citizens from holding Crypto Assets.

So, why does selling Crypto Assets lead to bank card freezes and "assisting investigations"? The main reasons are as follows:

1. The sales channels are not standardized and may involve "black money".

"Dirty money" usually refers to illegal funds involved in telecommunication fraud or online gambling. Some non-compliant trading platforms may incorrectly match these funds, and some platforms may collude with upstream criminal money laundering channels. Crypto Assets exchanges to fiat currency may become a part of the money laundering process.

In our country, money laundering is strictly prohibited. If a bank suspects that the funds received in an account may be of illegal origin, it typically takes freezing measures. For ordinary users, it is difficult to determine whether a single transaction involves "dirty money," while banks conduct risk assessments based on factors such as transaction frequency, capital flow, and account usage.

2. Pursue high exchange rates and collaborate with unidentified individuals

Some so-called "high exchange rate" services may actually operate as underground money houses. These institutions mainly engage in foreign exchange transactions and often adopt a "matching" operation, collecting fiat currency in one country while depositing an equivalent amount of foreign exchange in another. Although this method may offer more favorable exchange rates than official channels, there are significant issues regarding the legality of the source of funds.

Underground money houses may collaborate with illegal operating platforms or fraud groups to ensure their own fiat currency liquidity. Once these unidentified funds enter ordinary user accounts, they can easily trigger legal risks.

3. There are issues with the user's own behavior.

In practice, some users may also engage in borderline behaviors or have income sources that are difficult to explain. For example, there are users who, during the process of selling Crypto Assets, received funds related to online gambling due to platform reasons, resulting in over 400,000 yuan in their bank accounts being frozen. Further investigation revealed that the user had also participated in online gambling activities and had a significant mixing of funds, making it difficult to prove the legality of the source of funds. Coupled with a lack of stable legal income sources, this directly leads to difficulties in the unfreezing process.

Does "Assisting in Investigation" pose criminal risks?

If one is merely engaged in Crypto Assets trading, it typically does not pose criminal risks. According to Article 64 of our country's Criminal Law, only the illegal gains of criminals should be confiscated or ordered to be returned. If the funds in the account are indeed illicit proceeds, the public security organ has the right to confiscate them, but at this time, the account holder is not a criminal suspect, but rather a "victim" affected by the involved funds.

However, in certain special circumstances, such as when a user has a special connection with the source of funds beyond an ordinary relationship, and has a certain understanding of the improper nature of the platform's source of funds, they may face more complex legal risks, mainly including the crime of concealing and disguising criminal proceeds and the crime of assisting information network criminal activities.

Strategies for Dealing with Frozen Cards and "Assisting Investigations"

1. Self-assess criminal risk. If you confirm that you have no other illegal activities, you can cooperate with the investigation and prepare relevant materials to prove your legality.

2. Contact the relevant banks to confirm the judicial authority executing the freeze and their contact information, and obtain the bank statements related to the funds transfer as much as possible.

3. Contact the Crypto Assets trading platform and request the transaction records.

4. Write a detailed statement of circumstances, clearly outlining your Crypto Assets trading situation and source of funds. If necessary, seek assistance from a professional lawyer.

5. If the local public security bureau requests a presence to explain the situation, consult a professional lawyer in advance and make sufficient preparations before cooperating with the investigation. Be particularly cautious regarding freezing and investigation requests from public security agencies in other locations.

Conclusion

Facing a bank card freeze, there is no need to panic excessively, as a freeze does not necessarily mean involvement in a criminal case. However, it is important to note that regardless of whether the account holder is a suspect, if the funds in the account are indeed illicit gains, even if held in "good faith", there may be a risk of the funds being fully or partially reclaimed.

I hope all Crypto Assets holders can trade safely and compliantly, avoiding unnecessary legal risks. It is wise to seek professional legal advice promptly when encountering issues.