Overnight, the OTC trading circle in the crypto world fell into panic—The latest criminal judgment published by the Beijing Second Intermediate People's Court has sounded the alarm for all virtual currency traders: someone was sentenced to three years and six months in prison and fined 40,000 yuan for merely helping others transfer 200,000 yuan using USDT.
This is not an ordinary punishment, but a clear signal from regulators targeting the gray areas of virtual currency transactions: touching on 'suspicious transactions' could lead to imprisonment!
1. A 200,000 USDT case leads to a criminal case: Beneath the surface of regular transactions lies a 'money laundering red line.'
The core of this case lies in 'willful misconduct':
In August 2024, the defendant Liu knowingly helped someone exchange 200,000 yuan in cash, which he knew was 'criminal proceeds' (later verified to be money from a fraud victim), still agreed to help him 'exchange for USDT.' What seemed like a common OTC transaction—receiving cash and transferring virtual currency—actually became an accomplice in 'transferring criminal proceeds.'
More critically, after the USDT transfer, the flow of funds was completely severed, greatly hindering judicial authorities' tracking efforts. The court ultimately determined that Liu's actions constituted 'concealing and disguising criminal proceeds,' resulting in a prison sentence as well as the confiscation of his illegal gains and the imposition of an additional fine.
Many mistakenly believe that 'helping others exchange currency for a fee is not a big deal,' but this judgment makes it clear: as long as one knows the funds are improperly sourced and still participates in buying, selling, or transferring virtual currency, it constitutes a violation of criminal law, leaving no room for the illusion of 'unknowing.'
2. The judge highlights: These 3 types of behavior must absolutely be avoided; touching them could trigger a mine.
The judge presiding over this case directly pointed out the 'criminal high-risk zone' in the crypto circle, particularly warning against the following three types of operations, as touching them may be illegal:
1. Engaging in transactions with 'unknown funds': If the counterpart requests to exchange USDT for cash or via anonymous transfer but cannot explain the source of the funds (e.g., claiming 'business receivables' or 'friends borrowing' without any proof), these transactions must be refused.
2. Seeking 'abnormally high returns': If someone promises 'exchanging 10,000 USDT for a 500 yuan fee' or 'helping transfer a sum for a 10% commission,' be wary—high returns are likely backed by criminal funds; there is no such thing as free money.
3. Assisting in 'fund transfers': Whether the other party is a friend or a stranger, if they request 'first transfer USDT to a designated address and then help withdraw,' it essentially means helping to 'clean' funds, which constitutes joint criminal liability.
The judge emphasized: Many defendants harbor the illusion that 'virtual currency cannot be traced' and 'the worst that can happen is a fine,' but today, judicial authorities have become very adept in on-chain tracking and funds tracing technology for virtual currencies. 'Trying to evade regulation with USDT is simply not feasible.'
3. Regulation is by no means a 'passing trend': The era of 'compliance cleansing' in the cryptocurrency circle has arrived.
This judgment is not an isolated case, but a reflection of the tightening regulation. Over the past six months, many courts have heard similar cases: some were sentenced to five years for helping fraud groups exchange USDT, and others received three years for using virtual currency to help gamblers transfer funds—judicial authorities have made it clear: virtual currency is not a 'lawless territory'; as long as it involves the transfer of criminal funds, severe penalties will be imposed.
The underlying logic is clear: as virtual currencies become more popular, they are gradually becoming 'money laundering tools' for criminal activities such as fraud, gambling, and embezzlement. The judgment from the Beijing Second Intermediate Court sends a signal to the entire cryptocurrency circle: the regulatory 'Sword of Damocles' has fallen, and the previously 'gray transactions' in the 'blurred zone' are now within the regulatory sight.
4. Retail investor survival guide: 4 steps to avoid criminal risks and protect your principal and freedom.
As an ordinary player in the crypto circle, to stay away from landmines, you must remember the following 4 'safety lines':
1. Only trade with 'real-name counterparties': Operate through legitimate OTC platforms, confirm that the other party has real-name authentication and complete transaction records, and firmly refuse private cash transactions and anonymous transfers.
2. Keep complete 'funding vouchers': Save the chat records (clearly stating the other party's fund usage), transfer screenshots, and platform orders for every transaction. If you are later investigated, this can serve as proof of 'unknowing'.
3. Directly refuse 'suspicious situations': If the other party rushes for a transaction, has a large amount of funds but does not provide a source, or requests 'multiple transfers,' these are all danger signals—decisively block and cut losses.
4. Do not earn 'lucky money': Even if the other party offers a high service fee, once you sense something is 'off,' resolutely avoid it—200,000 exchanged for three and a half years in prison is a price far greater than short-term gains.
Finally, it is crucial to have a clear understanding: the 'apparently easy money' in the crypto circle often hides unseen 'costs,' which could be fines or even the loss of freedom. The Beijing court's ruling has clearly drawn the 'red line': cryptocurrency trading is not prohibited, but rules must be followed, and black and white must be distinguished. Once involved in 'criminal funds,' even the smallest transaction could lead to heavy legal consequences.
