Pay attention to a few points, which can effectively prevent receiving dirty money and a frozen card:
(1) When doing OTC transactions, try to choose large platforms like Binance or 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's strict selection trading (compared to free trading, T+2 withdrawal).
(3) Avoid using stablecoins like USDT for OTC transactions directly; try to use mainstream coins like BTC or ETH for OTC transactions.
(4) The bank card used for OTC transactions must be a separate card that is usually not used, separated from salary cards, so that even if it is frozen, it will not affect the use of other funds, and it will be easier to clarify the flow of funds during investigations.
(5) For OTC transactions, try to use cards from local banks, such as city commercial banks and 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 nationwide, making it easy for law enforcement agencies to freeze them directly.
(6) Do not frequently trade with fixed merchants, and avoid trading frequently with fixed users. If the same user indirectly purchases more than three times in one day, or buys and then sells again after a few hours, it will be very dangerous and highly suspicious of money laundering.
(7) Find reliable OTC merchants for transactions. Try to actively take orders from large merchants and market makers, with fewer hanging orders, and avoid merchants from problematic areas. In practice, it is very difficult for ordinary users to identify which merchants are reliable. For example, many friends who frequently traded with Huobi Blue Shield service merchants also had their cards frozen.
(8) Reduce the frequency of withdrawals and increase the amount of cashing out.
(9) After OTC transactions, do not transfer to your other bank cards to avoid contaminating other funds, which complicates cooperation in investigations. If you urgently need money, you can withdraw cash from an ATM or spend online.
(10) Try to choose to cash out during working days. 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 payment. After selling USDT for RMB, do not transfer it out immediately; keep it in the account for a period of time.
If we suffer from a frozen card, how should we explain it to prove that we are not involved in money laundering activities?
(1) The individual is engaged in normal Bitcoin buying and selling transactions, which do not involve money laundering or similar transactions;
(2) You are unaware of any criminal implications regarding the debts received from selling cryptocurrency.
(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 transactions does not violate the law.
In OTC transactions, if the withdrawal bank card is frozen due to police judicial freezing, what materials will the other party require to lift the freeze?
Common materials to be provided mainly include: complete transaction records, such as bank card transaction records, on-chain transaction records, trading platform order records, WeChat chat records (including communication during the transaction process), and other evidence that can prove the legality of assets, including income proof.
So, once you unfortunately receive dirty money and your card is frozen, how should you resolve it?
First, go to your bank to understand the situation, the reason for the card freeze, and which authority has frozen the card.
The reasons for card freezing can be summarized into two types: bank risk control and police freezing:
1. Bank risk control. Bank risk control may be triggered by frequent large transfers in and out, concentrated inflows and dispersed outflows, fast in-and-out transactions, frequent nighttime transactions, and leaving no balance in the account, collectively referred to as abnormal transactions. This triggers the bank's anti-money laundering risk control system.
2. Police freezing. Usually happens when the account has received other related criminal proceeds, which may have been received directly or indirectly. The police will freeze all related accounts through which the involved funds have flowed to prevent fund transfer and facilitate case investigation.
What should be done to resolve the two reasons for card freezing?
1. For bank risk control freezing:
Bring your ID card and bank card to the bank to communicate and submit relevant transaction proof. If it involves police policy directives, you will also need to cooperate with the local police department in the investigation. If it triggers the anti-fraud center's model control, you will need to fill out the anti-fraud application form required by the anti-fraud department, and only after approval can it be unfrozen.
2. For police judicial freezing:
First, observe for 3 days. See if the temporary stop payment has turned into formal freezing (continuing for six months). If it turns into a formal freeze, go to your bank immediately to inquire about the name of the police department that froze the card, the case number, and the name of the officer responsible for the case. Then contact the responsible officer to understand the reason for the card freeze and cooperate with the officer's investigation. Once it is verified that you have not engaged in any illegal or disciplinary behavior, your account will be unfrozen.
