Pay attention to the following points to effectively prevent receiving dirty money and account freezing:
(1) For 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 one cannot withdraw immediately after selling cryptocurrency, it reduces the risk of being suspected of money laundering through OTC transactions. For example, Binance T+1, Huobi Select Trading (compared to free trading, T+2 withdrawal).
(3) Avoid directly using stablecoins like USDT for OTC transactions; try to use mainstream coins like BTC and ETH for OTC transactions.
(4) The bank card used for OTC transactions should be a separate card that is usually not used, separated from salary cards, etc. This way, even if it is frozen, it will not affect the use of other funds, and it will be easier to clarify the flow of funds when cooperating with investigations.
(5) For OTC transactions, try to use cards from local banks, such as local city commercial banks, rural commercial banks. Large and medium-sized joint-stock commercial banks like Industrial and Agricultural Bank, China Construction Bank, etc., have branches all over the country, making it easier for law enforcement agencies to freeze accounts directly.
(6) Do not engage in frequent transactions with fixed merchants, and avoid frequent transactions with fixed users. If the same user indirectly purchases more than three times in one day, or buys and then sells a few hours later, it can be very dangerous and highly suspicious of money laundering.
(7) Look for reliable OTC merchants for transactions. Try to actively take orders from large merchants and market makers, and place fewer orders, avoiding merchants in problematic areas. In fact, it is difficult for ordinary users to distinguish which merchants are reliable. For example, many friends who traded with Huobi Blue Shield service merchants also had their accounts frozen.
(8) Reduce the frequency of withdrawals and increase the amount of cashing out.
(9) After OTC transactions, do not transfer to your other bank cards to avoid contaminating other funds, as it complicates cooperation in investigations. If you need money urgently, you can withdraw cash through an ATM or spend it online.
(10) Try to choose working hours 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 funds. After selling USDT for RMB, do not transfer out immediately; keep it in the account for a period of time.
After suffering from a frozen account, how can we explain ourselves to prove we were not involved in money laundering activities?
(1) Individuals are engaged in normal Bitcoin buying and selling transactions, without involving money laundering or other illegal transactions;
I am unaware of any criminal allegations regarding the debts incurred from selling cryptocurrency;
(3) Cooperate by providing all transaction records, chat records, on-chain transfer records, etc.;
(4) Be very clear that engaging in digital asset trading does not violate the law.
In OTC transactions, if the withdrawal bank card is frozen due to public security judicial actions, what materials will the other party require from individuals to lift the freeze?
Common materials to provide mainly include: complete transaction records, such as bank transaction statements, on-chain transaction records, order records from the trading platform, WeChat chat records (including communication content regarding the transaction process), and other evidence that can prove the legality of the assets, including income proof, etc.
So, what should one do if they unfortunately receive dirty money and their account is frozen?
First, go to the account-opening bank to understand the situation regarding the reason for the account freeze and which authority has the power to freeze it.
The reasons for account freezing can be summarized into two categories: bank risk control and public security freezing:
1. Bank risk control. The bank's risk control may be triggered by frequent large transfers from the card recently, transferring funds in a dispersed manner, concentrated deposits and dispersed withdrawals, quick in-and-out transactions, frequent night trades, not leaving a balance in the account, etc., collectively termed as transaction anomalies. As a result, the bank's anti-money laundering risk control system is activated.
2. Public security freezing. This usually occurs when the account has received other involved illicit funds, either directly or indirectly. The public security will freeze all related accounts that have processed the involved funds to prevent the transfer of funds and facilitate case investigation.
How to resolve the two types of account freezing?
1. Regarding bank risk control freezing:
Bring your ID card and bank card to communicate with the account-opening bank, and submit relevant transaction records. If it involves any public security policy directives, you must cooperate with investigations at the local public security department. If triggered by the anti-fraud center's model control, you will also need to fill out the anti-fraud application form as required and pass the review to unfreeze.
2. To respond to public security judicial freezing:
First observe for three days. See if the temporary stop payment has turned into a formal freeze (continuing to freeze for six months). If it turns into a formal freeze, go to the account-opening bank immediately to inquire about the public security unit's name that froze the card, the case number, and the name of the officer responsible for the case. Then contact the officer to understand the reason for the account freeze and cooperate with the investigation. If it is confirmed that you have not engaged in any illegal or disciplinary behavior, your account will be unfrozen.
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