Pay attention to a few points, which can effectively prevent receiving dirty money and having your card frozen:
(1) For OTC trading, 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, it reduces the risk of being suspected of money laundering through OTC transactions. For example, Binance T+1, Huobi Strict Selection Trading (relative to free trading, T+2 withdrawals).
(3) Avoid using stablecoins like USDT for OTC trading; try to use mainstream coins like BTC or ETH for OTC transactions.
(4) The bank card for OTC trading must be a separate card that you usually do not use, kept separate from your salary card. This way, even if it is frozen, it will not affect the use of other funds, making it easier to explain the flow of funds during an investigation.
(5) The bank card for OTC trading should preferably be from a local bank, such as local urban commercial banks or rural commercial banks. Large and medium-sized joint-stock commercial banks like Industrial and Agricultural Bank, China Construction Bank, and China Merchants Bank have branches in various regions, making it easy for law enforcement to freeze accounts directly.
(6) Do not frequently trade with fixed merchants, and avoid frequent trading with the same users. Making more than three indirect purchases from the same user in a single day, or buying and then selling a few hours later, can be very dangerous and highly suspicious of money laundering.
(7) Find reliable OTC merchants for trading. Try to actively take large orders from major merchants and market makers, and avoid placing orders. Be cautious with merchants in problematic areas. In fact, as an ordinary user, it is difficult to discern which merchants are reliable. For example, friends who traded with Huobi Blue Shield service merchants have also had their cards frozen.
(8) Reduce the frequency of withdrawals and increase the amount of cash converted.
(9) After OTC trading, do not transfer to your other bank cards to avoid contaminating other funds, which could complicate the investigation. If you urgently need money, you can withdraw cash through an ATM or spend online.
(10) Try to choose weekdays for cashing out. It is best to conduct transactions during normal working hours, such as between 9 AM and 9 PM.
(11) Do not transfer out immediately after receiving the funds. After selling USDT for RMB, do not transfer it out immediately; leave it in the account for a while.
If we suffer from a frozen card, how should we explain ourselves to prove that we did not participate in money laundering activities?
(1) Individuals engaged in normal bitcoin buying and selling transactions do not involve money laundering or similar transactions.
(2) You are unaware that the debts received from selling coins are suspected of being criminal.
(3) Cooperate by providing all transaction records, chat records, on-chain transfer records, etc.;
(4) You must be very clear that engaging in digital asset trading does not violate the law.
OTC trading, the withdrawal bank card is frozen by public security and judicial authorities. What materials will the other party require a person to provide in order to lift the freeze?
Common materials to provide mainly include: complete transaction records, such as bank card transaction statements, on-chain transaction records, trading platform order records, WeChat chat records (including communication about the transaction process), and other evidence that can prove the legality of assets, even income proof, etc.
So, if you unfortunately receive dirty money and your card gets frozen, how should you resolve it?
First, go to your account-opening bank to understand the reason for the freeze and which authority is responsible for it.
The reasons for card freezing can be summarized into two types: bank risk control and public security freeze.
1. Bank Risk Control. Bank risk control may be triggered by frequent large transfers, dispersing inflows and concentrating outflows, concentrating inflows and dispersing outflows, quick in-and-out transactions, frequent night trading, and accounts that do not maintain a balance, collectively referred to as abnormal transactions. This triggers the bank's anti-money laundering risk control system.
2. Public Security Freeze. Typically occurs when an account has received other illicit funds related to a case, which may have been received directly or indirectly. Public Security will freeze all related accounts that have processed the involved transactions to prevent fund transfer and facilitate case investigation.
How to address the two reasons for card freezing?
1. Regarding bank risk control freezes:
Bring your ID card and bank card to communicate with your account-opening bank, and submit the relevant transaction reconciliation evidence. If it involves policies or directives from public security, you will also need to cooperate with the local public security department for investigation. If the fraud control center's monitoring is triggered, you must fill out the anti-fraud application form required by the fraud control center and pass the review to unfreeze.
2. Responding to public security judicial freezes:
Observe for 3 days first. See if the temporary freeze becomes a formal freeze (extended freeze for six months). If it turns into a formal freeze, go to your account-opening bank immediately to inquire about the name of the public security unit that froze the card, the case number, and the name of the officer in charge of the case. Then contact the responsible officer to understand the reason for the freeze and cooperate with their investigation. Once it is verified that you have not committed any illegal or disciplinary actions, your account will be unfrozen.