Pay attention to the following points, which can effectively prevent receiving dirty money and being card frozen:
(1) For OTC transactions, try to choose large platforms like Binance and OKEx. These platforms have better communication channels and risk control methods with regulatory and law enforcement agencies in the mainland.
(2) Try to choose OTC platforms that support T+1/T+2 withdrawal strategies. Although you cannot withdraw immediately after selling currency, this reduces the risk of being suspected of money laundering through OTC transactions. For example, Binance T+1, Huobi's selected trading (compared to free trading, T+2 withdrawals).
(3) Avoid directly using stablecoins like USDT for OTC trading; try to use mainstream coins like BTC and ETH for OTC trading.
(4) The bank card used for OTC transactions must be a separate card that is usually unused, kept separate from salary cards, so that even if it is frozen, it will not affect the use of other funds, making it easier to clarify the flow of funds during investigations.
(5) For OTC transactions, try to use cards from local banks, such as local urban commercial banks and rural commercial banks. Large and medium-sized joint-stock commercial banks like Industrial and Agricultural Bank of China, China Construction Bank, and China Merchants Bank have branches all over the country, making it easy for law enforcement agencies to freeze accounts directly.
(6) Do not frequently trade with fixed merchants and avoid trading frequently with fixed users. Indirectly purchasing more than 3 times from the same user in one day, or buying and then selling after a few hours, is very dangerous and highly suspicious of money laundering.
(7) Find reliable OTC merchants for trading. Try to actively take orders from large merchants and market makers, avoid placing orders, and steer clear of merchants in problematic areas. In fact, it is very difficult for ordinary users to distinguish which merchants are reliable. For example, many friends who traded with Huobi's blue shield service providers have also had their cards frozen.
(8) Reduce the frequency of withdrawals and increase the cash amount.
(9) After OTC transactions, do not transfer to your other bank cards to avoid contaminating other funds, which complicates cooperation in investigations. If you need money urgently, you can withdraw cash from an ATM or spend it online.
(10) Try to choose working days for cashing out. It is best to conduct transactions during normal working hours, such as between 9 AM and 9 PM.
(11) Do not transfer out immediately after receiving payment. After selling USDT for RMB, do not transfer out immediately; keep it in the account for a while.
If you suffer from a card freeze, how should we explain to prove that we are not involved in money laundering activities?
(1) Individuals engaged in normal Bitcoin buying and selling transactions, without involvement in money laundering or other illegal transactions;
(2) You were unaware that the debt received from selling currency was suspected of being criminal;
(3) Cooperate by providing all transaction records, chat records, on-chain transfer records, etc.;
(4) Be very clear that engaging in digital asset trading is legal.
In OTC trading, if the withdrawal bank card is frozen due to police judicial freezing, what materials will the other party require to lift the freeze?
Commonly required materials include: complete transaction records, such as bank card transaction statements, on-chain transaction records, trading platform order records, WeChat chat records (including content related to the trading process), and other evidence that can prove the legality of the assets, even income proof, etc.
So, if you unfortunately receive dirty money and your card gets frozen, how should you resolve it?
First, go to the bank where you opened your account to understand the reason for the card freeze and which authority has the right to freeze it.
The reasons for card freezing can be summarized into two types: bank risk control and police freezing:
1. Bank risk control. Reasons for triggering bank risk control may include frequent large transfers in a short time, concentrating funds in and dispersing out, rapid in-and-out transactions, frequent night trading, and not leaving a balance in the account, collectively referred to as transaction anomalies. Thus, the bank's anti-money laundering risk control system is triggered.
2. Police freezing. Usually occurs when an account has received other involved illicit funds, which may have been received directly or indirectly. The police will freeze all associated accounts through which the involved funds have flowed to prevent the transfer of funds and facilitate case investigation.
How to resolve the two reasons for card freezing?
1. Regarding bank risk control freezing:
Bring your ID card and bank card to the bank where you opened your account to communicate and submit relevant transaction proof. If there are policies or directives from the police involved, you will also need to cooperate with the local police department for investigation. If the anti-fraud center's model is triggered, you will have to fill out the anti-fraud application form required by the anti-fraud request, and only after passing the review can the freeze be lifted.
2. To deal with police judicial freezing:
Observe for 3 days first. Check if the temporary freeze has turned into a formal freeze (extended freeze for six months). If it turns into a formal freeze, go to the bank where you opened your account immediately, inquire about the police unit that froze the card, the case number, and the name of the police officer in charge of the case. Then contact the responsible police officer to understand the reason for the card freeze and cooperate with their investigation. After verifying that you have not engaged in any illegal or disciplinary actions, your account will be unfrozen.
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