In cryptocurrency trading, if you trade USDT or other cryptocurrencies with others outside the platform and they claim not to have received the coins after receiving payment, refusing to pay in cash or RMB, this behavior constitutes fraud. You can report it to the police, and after their intervention, they can freeze the other party's account and return the funds according to the law. However, in reality, it is not easy to file a case. Many victims, after controlling the other party and bringing them to the police station, receive the response that the case cannot be filed.
This is because, according to the 924 notice in 2021, transactions related to virtual currencies are considered illegal financial activities, and the act of trading virtual currencies is regarded as a risk that one takes on themselves. The police believe that such transactions are not protected by law and therefore refuse to file cases. However, it should be clarified that the 924 notice does not deny the property attributes of virtual currencies; they also have value and belong to property objects protected by criminal law. Therefore, fraudulent behavior can still constitute a criminal case and should be filed according to the law.
If the police do not file a case for you, you can apply for case supervision from a higher-level police department or the same-level people's procuratorate to seek to recover your losses.
