Pay attention to several points to effectively prevent receiving illicit funds and having your card frozen:
（1）In OTC transactions, try to choose large platforms like Binance and OKEx. These platforms have better communication channels and risk control measures with regulatory and law enforcement agencies on the mainland.
（2）Try to choose OTC platforms that support T+1/T+2 withdrawal strategies. Although you cannot cash out immediately after selling coins, it reduces the risk of being suspected of money laundering through OTC transactions. For example, Binance offers T+1, and Huobi's strict selection trading has T+2 withdrawals relative to free trading.
（3）Avoid directly using stablecoins like USDT for OTC transactions; it's better to use mainstream coins like BTC or ETH.
（4）The bank card used for OTC transactions must be a separate card that is not used regularly, separated from salary cards, etc. This way, even if it gets frozen, it won't affect the use of other funds, and it will also be easier to clarify the flow of funds during the investigation.
（5）When conducting OTC transactions, it's best to use local bank cards, such as those from city commercial banks and rural commercial banks. Large state-owned banks like Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank, and Bank of China have branches nationwide, making it easier for law enforcement to freeze accounts directly.
（6）Do not engage in frequent transactions with fixed merchants, and avoid frequent transactions with the same users. If the same user conducts more than three indirect purchases in a single day, or buys and then sells a few hours later, it will be very risky and could raise suspicions of money laundering.
（7）Find reliable OTC merchants for transactions. Try to actively take orders from large market makers and do less posting. Avoid merchants from problematic areas. In fact, as an ordinary user, it is difficult to distinguish which merchants are trustworthy. For example, friends who frequently traded with Huobi's blue shield service merchants have also faced frozen cards.
（8）Reduce the frequency of withdrawals and increase the amount of cash exchanged.
（9）After OTC trading, do not transfer to other bank cards to avoid contaminating other funds, which complicates the investigation. If you urgently need money, you can withdraw cash from an ATM or spend it online.
（10）Try to choose weekdays for cashing out. It is best to conduct transactions during normal working hours, such as from 9 AM to 9 PM on weekdays.
（11）Do not immediately transfer out after receiving payments. After selling USDT for RMB, do not transfer it out immediately; keep it in the account for a period of time.
If we face a frozen card, how should we explain to prove that we did not participate in money laundering activities?
（1）The individual is engaged in normal Bitcoin buying and selling transactions, without involvement in money laundering or similar activities;
（2）I am unaware of any criminal allegations regarding the debts incurred from selling coins;
（3）Cooperate by providing all transaction records, chat records, on-chain transfer records, etc.;
（4）It is important for individuals to clearly understand that engaging in digital asset trading does not violate the law.
In OTC transactions, if the bank card for withdrawals is frozen by public security, what materials will the other party require from individuals to lift the freeze?
Commonly required documents mainly include: complete transaction records, such as bank transaction statements, on-chain transaction records, order records from trading platforms, WeChat chat records (including communication related to the transaction process), and other evidence that can prove the legality of assets, including income proof, etc.
So, what should one do if they unfortunately receive illicit funds and their card gets frozen?
First, go to the bank where the account is held to understand the reason for the card freeze and identify which authority has the right to freeze it.
The reasons for card freezing can be summarized into two categories: bank risk control and public security freeze:
1. Bank risk control. Bank risk control may be triggered by recent frequent large transfers, scattered deposits and concentrated withdrawals, or concentrated deposits and scattered withdrawals, quick in-and-out transactions, frequent night transactions, and accounts not keeping balances, collectively referred to as transaction anomalies. This triggers the bank's anti-money laundering risk control system.
2. Public security freeze. This usually occurs if the account has received other illicit funds related to the case, which may have been received directly or passed through indirectly. Public security will freeze all related accounts through which the illicit funds have flowed to prevent the transfer of funds and facilitate case investigation.
How to address the two reasons for card freezing?
1. For bank risk control freezing:
Bring your ID card and bank card to the bank where you opened the account, communicate with them, and submit relevant transaction proof. If there are policies or directives from the public security that are involved, you may need to cooperate with the local public security department for an investigation. If the anti-fraud center's model is triggered, you will need to fill out the anti-fraud application form required by the anti-fraud department, and only after passing the review can you unfreeze your account.
2. To deal with public security judicial freezes:
First, observe for three days. Check if the temporary freeze has turned into a formal freeze (which can last for six months). If it becomes a formal freeze, go to the bank immediately to inquire about the name of the public security unit that froze the card, the case number, and the name of the police officer responsible for the case. Then contact the responsible police officer to understand the reason for the freeze and cooperate with their investigation. Once it is confirmed that you have not engaged in any illegal or disciplinary actions, your account will be unfrozen.
