'If I knew where I would die, I wouldn't go there.' - Charlie Munger


In the world of crypto assets, this statement is worth deep reflection for every participant.



First, why are we easily 'caught'?


Many people think they won't be deceived and do not believe risks will fall upon them. But the fact is, in the world of Web3 and crypto assets, issues like theft, fraud, and platform collapses are rampant.


Why do scams always succeed? Because we overlook two perspectives: one is the blind spot of self-awareness, and the other is the mindset of the opponent.


Scammers do not succeed by chance; they precisely target victims through long-term planning, social engineering, interface disguise, and even technical vulnerabilities, repeatedly testing defenses. You think it's an 'operational error,' but they have already 'designed everything.'


Second, five major risk scenarios, can you avoid them?


1. Wallet theft



  • Fake wallets and phishing links often appear under the guise of 'official recommendations' and 'airdrop interactions';


  • In authorized operations, a backdoor contract can be implanted; a single click can lead to zero assets.


  • Fingerprint browsers have previously exposed vulnerabilities, leading to silent asset theft.


2. Trading platforms running away.


On average, every three to four years, a batch of trading platforms collapses in the industry, involving tens of thousands of users and billions in funds. Many users are attracted by 'high yields and low thresholds,' ignoring basic financial bottom lines such as risk control, compliance, and custody.


3. Offline trading scams.


Many people think online transfers are risky and try to use offline cash transactions, only to fall into deeper traps. Once an incident occurs, the police often first question, 'Why did you choose to trade this way?' - this is a hard question to explain.


4. There are risks in depositing funds too.


Receiving 'black U' in your wallet may also lead to account freezing. You do not know whether the person sending money to you is involved in the case; once identified as a funding channel, victims often cannot even find the appeal entry.


5. Lending bank cards and exchange accounts.


Many college students and young people are tempted by 'easy money' and lend their accounts to 'help friends transfer coins'; they may face account freezing at best, or at worst, be suspected of assisting money laundering and face investigation.


Third, the negative list: your lightning rod.


In the Web3 world, we recommend that everyone create a 'negative list' for themselves, clearly stating what should not be touched and what cannot be done.


High-risk operations include:



  • Trading or withdrawing without KYC;


  • Ignoring whether the counterpart's real-name information matches their bank card;


  • Choosing small platforms for trading or withdrawing coins;


  • Participating in unclear projects or airdrops, authorizing wallets indiscriminately;


  • Lending exchange accounts or bank cards, or trading offline with strangers.


'Not understanding authorization contracts, misusing wallets, and blindly withdrawing funds is just treating luck as a strategy.'


Fourth, why do tragedies keep repeating?


Legal aspects: gray area


Currently, crypto assets are still in a vague or even 'vacuum' state in the country, making it difficult to file cases, gather evidence, and protect rights. Criminals are exploiting this vacuum and the blind spots in law enforcement.


Psychological aspects: greed + luck.



  • You are very sensitive to signals of 'making money' but dull to signals of 'risk';


  • You think 'others will be deceived, but I won't';


  • You don't do KYC because you're 'afraid of trouble', not realizing that the trouble of frozen assets is much greater.


Five, when problems really arise, what should you do?



  • First step: preserve all evidence.


Including chat records, authorization information, transaction hashes, platform URLs, etc.



  • Second step: information sorting and on-chain analysis.


Establishing the flow of funds and behavioral chains helps the police understand the case.



  • Third step: timely seek professional lawyers and technical support.


Lawyers can help you legally protect your rights, and technical teams can assist in on-chain tracking.



  • Fourth step: contact the police and seize the 'golden time window.'


Getting involved a minute earlier increases the chance of recovering assets.


Sixth, what we can do is far more than just 'closing the stable door after the horse has bolted.'


In the Web3 world, freedom coexists with risk.


You can use wallets across borders, but you may lose everything due to a single authorization.


Suggestions:



  • Before each transaction, take a look at the negative list;


  • Stay updated on industry risk news and scam cases to remain vigilant;


  • Regularly check wallet authorization records;


  • Perform KYC on legitimate platforms;


  • Establish a 'delayed gratification' mindset and refuse the temptation of short-term profits.


Seventh, written at the end.


In the world of crypto assets,


Making money relies on opportunity; keeping it relies on awareness.


Your awareness of risk determines your fate in the Web3 world.


I am Niu Lu, a Web3 lawyer.


May you find success on your future Web3 journey:


'Learning risk control, valuing compliance, and establishing boundaries are essential to truly enjoy the freedom and benefits brought by Web3.'