With the surge of the bull market, many investors' account balances are rising sharply, and quite a few people are calculating in their minds to withdraw some funds to improve their quality of life. However, everyone should not let joy cloud their judgment; there are hidden dangers here. If you're not careful, not only will you fail to improve your life, but you may also find yourself in serious trouble. You might encounter situations where your account is frozen by banks, Alipay, or WeChat, which is still a minor issue compared to the serious risk of being called in by law enforcement for investigation, or even facing criminal detention. The root of all this lies in the currently enforced 'Clean Network Action' and 'Card Cutting Operation', aimed at strictly controlling illegal fund flows. Today, I will analyze the impact of this action on the withdrawal process and share some practical strategies to effectively avoid the risk of account freezing.
Account Freeze: No Longer Just a One-sided Decision by Banks
Under the framework of the 'Card Cutting Operation', banks are no longer the only entities authorized to freeze accounts. Once your bank card, Alipay, or WeChat Pay account shows abnormal transactions, or is suspected of being involved in illegal activities, relevant regulatory authorities have the right to directly freeze the account without the bank or payment platform's consent. In other words, as long as regulatory authorities have doubts about the legality of the funds, your account could be frozen at any time without prior notice.
Risk Control Freeze: Usually a 72-hour Waiting Period
When your account is frozen, you will find that the status of your bank card or Alipay and WeChat accounts changes to 'Stopped'. Don't panic at this point, as generally, the account will automatically return to normal after 72 hours. However, if the account remains frozen after 72 hours, it may be due to a judicial freeze; especially in cases involving illegal fund flows, the duration of the account freeze may be uncertain and could last until the investigation is concluded.
Judicial Freeze: Behind It Is In-depth Investigation
If the account remains unfrozen after 72 hours, it is likely to be judicially frozen. In this case, relevant departments will conduct a detailed investigation into the flow of the account funds to determine whether there are illegal transactions or money laundering activities. If the funds are deemed to be illegally obtained, the time for unfreezing will be indefinite, and you will have to wait for the entire case to be resolved before any results are available.
Active Response: Cooperation in Investigation is Key
If unfortunately you encounter a situation where your account is frozen, be sure to actively cooperate with the investigation as soon as possible. If you are trading on an exchange, ensure to properly keep every transaction voucher, including transaction records and fund flow details. These vouchers can prove that your transactions are legal and compliant. Bring your personal identification and transaction vouchers, and proactively contact the relevant departments concerning the frozen account (if you are unsure which department froze it, you can consult the bank), honestly explain the transaction details, and strive for the account to be unfrozen as soon as possible.
Third-party Payment: Not a Lawless Zone
In addition to bank cards, accounts on third-party payment platforms like Alipay and WeChat are also subject to risk control supervision. In cryptocurrency trading, many people use Alipay or WeChat to receive payments, and these platforms are continuously strengthening their risk monitoring systems. Once abnormal transactions are detected, accounts may be frozen. The reasons for freezing could either be due to triggering the platform's own risk control rules, such as logging in from a different location or high-risk transaction types, or because the account funds are involved in illegal trading activities.
Regarding Alipay account freezes, there are mainly two reasons: one is triggering the platform's own risk control system (such as operations from different locations or risky transactions), and the other is a judicial freeze, especially when funds are suspected of being illegally obtained or involved in other illegal activities. If the account funds are judicially frozen, the handling method is similar to that of bank card freezes, and it will require undergoing the corresponding investigation process.
Withdraw Cautiously: Do Not Be Blindly Optimistic
Since October 2020, the state has been intensifying the 'Card Cutting Operation', and the regulation of virtual currencies has become increasingly strict. Therefore, friends in the cryptocurrency circle must exercise extreme caution when withdrawing funds. It is strongly recommended that before carrying out any transaction, especially when transferring large amounts of money to third-party payment accounts, you must conduct thorough risk assessments and checks. For example, request transaction flow records from the trading counterparty, verify if the account is newly opened, and check for overnight fund situations. Always ensure the source of funds is clear and legal to prevent inadvertently getting caught up in illegal fund transactions.
Local Differences: Professional Guidance Required
Local public security agencies have varying levels of understanding and recognition of virtual currencies. Some local departments with limited knowledge of virtual currencies may conduct stricter examinations of transactions involving virtual currencies, even directly investigating the situation. If you encounter such a situation, do not rush to defend the legality of virtual currencies due to a partial understanding of legal texts. The wisest course of action is to hire a professional lawyer to handle the matter, and do not blindly argue with the police. Staying calm and appealing according to the law and regulations is the best way to resolve the issue.
Stay Away from Luck: Legal Transactions are the Bottom Line
Many friends believe that their sources of funds in virtual currency transactions are legitimate; however, in reality, funds can easily be tainted by money laundering operations during the circulation of virtual currencies. Therefore, everyone must firmly avoid trusting strangers or engaging in offline transactions. At all times, ensure that you are fully aware of the source channels of the counterpart's funds, and do not attempt to conduct other transaction methods outside of regulated platforms, to avoid getting trapped in illegal fund transactions and ultimately facing legal consequences.
How do experienced cryptocurrency traders withdraw funds? Follow me to learn more about cryptocurrency knowledge.