Pay attention to the following points, which can effectively prevent receiving dirty money and getting your card frozen:
(1) When trading OTC, 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 in mainland China.
(2) Try to choose OTC platforms that support T+1/T+2 withdrawal strategies. Although you cannot withdraw immediately after selling coins, this reduces the risk of being suspected of money laundering through OTC trading. For example, Binance T+1, Huobi Select Trading (compared to free trading, T+2 withdrawal).
(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 trading must be a separate card that is usually not used, distinct from the salary card, so that even if it is frozen, it will not affect the use of other funds, and it will also be easier to clarify the flow of funds when cooperating with the investigation.
(5) Try to use cards from local banks for OTC trading, such as city commercial banks and rural commercial banks in various regions. Large and medium-sized joint-stock commercial banks like Industrial and Agricultural Bank of China, China Construction Bank, etc., have branches nationwide, making it easy for law enforcement agencies to freeze them directly.
(6) Do not trade frequently with fixed merchants, and avoid frequent transactions with fixed users. If the same user indirectly makes more than 3 purchases in one day, or buys and sells again a few hours later, it will be very dangerous and raises suspicions of money laundering.
(7) Seek reliable OTC merchants for trading. Try to actively take large orders from major merchants and market makers, minimize placing orders, and avoid merchants in problematic areas. In fact, as an ordinary user, it is difficult to distinguish which merchants are reliable. For example, many friends who traded with Huobi’s Blue Shield service merchants have also had their cards frozen.
(8) Reduce the frequency of withdrawals and increase the amount of cashing out.
(9) After OTC trading, do not transfer to your other bank cards to avoid contaminating other funds, which can complicate cooperation in the investigation. If you need money urgently, you can withdraw cash via ATM or spend 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.
(11) Do not transfer out immediately after receiving payments. After selling USDT for RMB, do not transfer out immediately; keep it in the account for a while.
Having suffered from a frozen card, how should we explain to prove that we are not involved in money laundering activities?
(1) Individuals engage in normal Bitcoin buying and selling transactions, without involving money laundering or similar activities;
(2) Unaware of any criminal allegations related to debts incurred from selling coins;
(3) Cooperate by providing all transaction records, chat records, on-chain transfer records, etc.;
(4) One must be very clear that engaging in digital asset trading does not violate the law.
In OTC trading, if the bank card for withdrawals is frozen due to public security judicial freezing, what materials will the other party require to unfreeze it?
Commonly required materials mainly include: complete transaction records such as bank card transaction records, on-chain transaction records, order records from trading platforms, WeChat chat records (including communication details about the transaction), and other evidence that can prove the legitimacy of assets, even income proof, etc.
So, what should be done if one unfortunately receives dirty money and has their card frozen?
First, go to the bank to understand the situation regarding the card freeze, and find out which authority has the power to freeze it.
The reasons for card freezing can be summarized into two types: bank risk control and public security freezing:
1. Bank risk control. Bank risk control may be triggered by frequent large transfers in recent times, dispersing inflows and concentrating outflows, rapid in-and-out transactions, frequent night trading, and not leaving a balance in the account, collectively referred to as transaction anomalies. This triggers the bank's anti-money laundering risk control system.
2. Public security freezing. Usually occurs when the account has received other involved illicit funds, which may be received directly or may have flowed indirectly. Public security will freeze all associated accounts that have processed the illicit funds to prevent fund transfer, facilitating investigation.
How to resolve the two types of card freezing?
1. Regarding bank risk control freezing:
Bring your ID card and bank card to communicate with the bank and submit relevant transaction reconciliation proofs. If it involves public security policy directives, you will also need to cooperate with local public security departments in the investigation. If it triggers the fraud prevention center's monitoring, you will need to fill in the anti-fraud application form required by the fraud prevention center, and only after approval can the freeze be lifted.
2. Responding to public security judicial freezing:
First, observe for 3 days. Check if the temporary freezing has turned into a formal freeze (which can last for another 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 in charge. Then contact the responsible police officer to understand the reason for the card freeze and cooperate with the investigation. After verifying that you have not committed any illegal or disciplinary actions, your account will be unfrozen.
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