Whether you are a newcomer or an old hand in the crypto circle, there are many confusions about withdrawal issues. Newcomers fear they can't withdraw money, while veterans worry about encountering dirty money.
Newcomers with only small transactions need not worry too much. After all, the domestic OTC market operates on a peer-to-peer (C2C) basis, with people wanting to buy and sell, so there will always be a C2C trading method available. Currently, the C2C trading markets on Binance and OKX are still stable; find reputable merchants, don’t be greedy for small profits, and you can use it with peace of mind.
Next, let's focus on the concerns of veterans in the crypto circle about the issue of frozen withdrawal bank cards, specifically the worry about receiving dirty money.
The following text is lengthy but contains all useful information; specific cases can be consulted with me for resolution.
Table of Contents
1 What is dirty money
2 Characteristics of dirty money
3 How to deal with dirty money issues when cashing out
4 How to handle a frozen bank card
5 Advanced Thinking
6 Summary:
What is dirty money
If the buying price in the C2C trading market is lower than the selling price.
In theory, you can buy 1000 USDT at a price of 6.34 and then sell 1000 USDT at a price of 6.38, making a net profit of 0.04 * 1000 = 40 dollars = 280 yuan. You can continuously loop this arbitrage.
But the market isn't naive; the profit margins have already been leveled out.
This reason occurs because merchants who buy USDT with fiat currency (i.e., listing at 6.38) have dirty money, so they are willing to buy USDT at a cost higher than the market price to get rid of their dirty money, and you become an accomplice in money laundering.
Before 2018, the C2C market was relatively normal. Later, telecom fraud and various dirty money schemes began to infiltrate the C2C market in the crypto space. The investigation of dirty money is now strictly regulated, and any card that has dirty money transactions will be frozen to assist in the investigation.
Characteristics of dirty money
It is very much like an infectious disease. Highly contagious and latent, it is not apparent on the surface. Thus, it brings two characteristics:
1. As long as this card receives dirty money, it will be infected and may be frozen. Transferring this card to any other card will infect the new card.
2. Before the freeze, you don't know which card or money has a problem; you only find out after it is frozen, so it is somewhat unpredictable.
How to deal with dirty money issues when withdrawing
1. When withdrawing, look for merchants with a large trading volume and a long registration time, with normal prices (selling price lower than the market buying price). Don’t be greedy for small advantages:
Generally, transactions with over 2000 deals, registered for more than a year, and priced lower than buying prices are safe. Those with small transaction volumes, registered within a month, and with prices at the top usually have problems.
2. Use infrequently used empty cards to receive money; don’t put too much on a single card, and try to trade with only one merchant per card. Isolate the funds for 1-3 months after receiving them, and only transfer to the main card after they are unfrozen. Since we don’t know which merchant has a problem, it’s purely probabilistic, so we need to minimize potential losses caused by a freeze. By isolating funds first, even if one card is frozen, it’s not a big issue; just wait for the problem to be resolved.
How to handle a frozen bank card
I previously wrote a long article detailing passive methods for unfreezing bank cards, which can be referenced.
Highly practical! Summary of bank card freezing and unfreezing solutions. 72 approvals · 18 comments on the article
Advanced Thinking
1. If you have a lot of money and already have a demand for USD, you can open an account at a USD exchange like Kraken, withdraw USDT to cash out into USD, and then withdraw to your USD card.
2. Some people immediately pay off credit cards/loans, or buy financial products, or invest in the stock market after receiving money; this generally has a lower probability of freezing.
3. Using bank cards is better. Alipay and WeChat cannot reduce the probability of freezing.
