In the world of cryptocurrency, while some focus on K-line charts to calculate profits, no one considers that a single transfer or issuance of coins may already cross legal boundaries.
From a university student sentenced to 4.5 years for issuing 'Shitcoin' to someone sentenced for laundering 25,000, these real cases hide a cruel truth: Cryptocurrency is not a lawless territory; some 'routine operations' have already violated criminal law.
1. Reselling USDT for foreign exchange? Beware of a 13-year sentence.
Case: A team led by Wan in Sichuan used 'RMB → USDT → USD' to transfer 234 million yuan in foreign exchange within two years. The court sentenced him to 13 years and 6 months for 'illegal business operations' and imposed a fine of 1.14 million yuan.
Why commit a crime? The annual foreign exchange limit for individuals in China is 50,000 USD. Using USDT to bypass regulations for foreign exchange is like an 'underground bank' that disrupts the order of foreign exchange management. Even minor activities — like someone cashing in USDT and reselling for profit — can lead to illegal business operation charges if the amounts are significant (e.g., over 5 million), with a maximum sentence of 15 years.
Reminder: Don't think that 'peer-to-peer trading' is very discreet; bank records and on-chain records are solid evidence.
2. Helping someone transfer coins for profit? A transaction of 25,000 can also constitute money laundering.
Case: A jobless young man, Xiao Wu, helped a 'money laundering company' use USDT to transfer funds to pay off his credit card, with a total transaction of only 25,000 yuan, earning 5,000 yuan, and was sentenced to 6 months probation with a fine of 2,000 yuan.
The scary part: Money laundering crimes do not consider the amount involved, only whether you 'knowingly facilitated the funds from an illegal source.' Even if you just use your own bank card to help a stranger transfer currency, as long as the funds are involved in fraud or gambling, you could be implicated. Someone helped transfer 90,000 yuan in funds and made a profit of 147 yuan, yet was still sentenced to 9 months.
Reminder: Avoid engaging in 'score running' or 'arbitrage' jobs; the commission offered may be traded for your prison term.
3. Issuing 'Shitcoin' and quickly withdrawing liquidity? A university student served 4.5 years in prison for this.
Case: A post-2000s university student, Yang, issued 'Shitcoin' BFF, where someone spent 50,000 USDT to buy in, only to withdraw liquidity within 24 seconds, resulting in the other party getting back only 21.6 USDT. The court sentenced him to 4 years and 6 months for 'fraud.'
Where's the controversy? The defense lawyer said 'the platform allowed for withdrawals,' but the court ruled that he intentionally imitated legitimate projects to defraud, which falls under 'with the intent to illegally occupy.' Even if the coin price later rises, as long as someone incurs a loss, it still counts as fraud.
Reminder: Issuing coins is not like 'opening a blind box,' especially when imitating others' projects or providing false advertising; it can easily be recognized as fraud.
4. Engaging in pyramid schemes with virtual currencies? 17 levels and 210 million involved, the main perpetrator was sentenced to 6 years.
Case: Li's team, under the guise of 'blockchain,' issued virtual currencies A, B, and C, creating a pyramid scheme with 17 levels, involving 210 million yuan. The main perpetrator was sentenced to 6 years and fined 500,000 yuan.
Trick revealed: These types of projects rely on 'referral rewards,' claiming 'one coin, one mansion,' but essentially use the money from new members to pay dividends to older members. Virtual currency is just a front; at its core, it is still a pyramid scheme. Even if the levels are not up to 17, as long as you develop more than 30 people and have more than 3 levels, you could be sentenced.
Reminder: Anyone asking you to 'buy coins and recruit others for profit' is 99% likely involved in a pyramid scheme.
5. Helping someone 'run scores' to launder money? 7 people shared 8,500 yuan, with the highest sentenced to 4 years.
Case: 7 individuals used Bitcoin for 'score running,' helping upstream transfer 9 million yuan in illicit funds, with the most they received being only 8,500 yuan, and the highest was sentenced to 4 years.
Legal boundaries: For the crime of 'concealing or disguising criminal proceeds,' it doesn't matter how much you earn; what matters is how much illicit money you helped transfer. A couple laundered 15 million and each received over 3 years in prison, with fines 10 times higher than their 'handling fees.'
Reminder: If a stranger asks you to 'process a transaction' using your crypto account, do not agree — your account may become a 'transit station' for illicit funds.
6. Is stealing virtual currency considered theft? A 360 employee stole 2.5 million in coins and received a sentence without negotiation.
Case: Three employees at 360 exploited a loophole to steal someone else's virtual currency worth 2.5 million, ultimately sentenced for 'illegally obtaining computer information.'
Key identification: The court has made it clear that virtual currencies are considered 'virtual property' and are protected by law. Stealing coins is akin to theft; using malware or hacking techniques can additionally result in charges of 'illegally obtaining computer information.' Previously, someone who robbed Bitcoin was sentenced for 'robbery.'
Reminder: Don't think that 'on-chain anonymity' means you can do whatever you want; police tracing technology is stronger than you think.
Summary: The 'safety rules' of cryptocurrency.
Do not engage in foreign exchange trading with virtual currencies, regardless of the amount;
Do not help strangers transfer currency or run scores, no matter how high the commission;
Issuing coins must comply with regulations; false advertising and quick withdrawals may involve fraud;
Beware of pyramid schemes that involve 'buying coins and recruiting people';
Not stealing or robbing, virtual currency is also protected property.
The risks of cryptocurrency are never just about price fluctuations. Understanding these cases is essential for longevity in this field — after all, no profit is worth sacrificing your freedom.
Disclaimer: The content of this article is for reference only and does not constitute any investment advice. Investors should consider their own risk tolerance and investment objectives, and rationally view cryptocurrency investments without blindly following trends.
