In May 2020, I withdrew a sum of U from a certain platform, which was directly transferred to my bank card.
After the withdrawal, I subsequently deposited the money into certain V and Z (third-party payment platforms). As a result, a few days later, when I went to the supermarket to buy something, my bank card and third-party accounts were all unable to make payments.
🔒——I encountered a frozen card, and it was a serious freeze affecting both the bank and all third-party accounts.
First, I was just trading cryptocurrency, why was I frozen?
I have never participated in any illegal activities, I just normally trade and cash out U.
So I quickly called the police in Anhui, and after communication, I learned that this transfer was implicated in a 'SA case', so I was affected.
My uncle suggested that I first provide explanatory materials and not force cross-province cooperation (this was during the pandemic):
📄 I submitted the following materials:
Trading records with OTC merchants
Merchant chat screenshots
Details of my own trading funds
Work income and bank flow proof
I thought that with these, I could smoothly unfreeze it.
Second, unexpected turn: trading funds are not protected.
My uncle told me: even if you are innocent, if this money is determined to be part of the funds involved in the case, you still need to 'compensate the victims first', otherwise, you cannot unfreeze it.
Although this is very unfortunate for me—trading funds are not clearly protected in the judicial sense, but in order to unfreeze my bank card, WeChat, and Alipay, I ultimately had no choice but to agree.
After compensation is complete, all accounts will be unfrozen successively.
Third, after that lesson, I summarized a few 'anti-freeze card' experiences
After that incident, I became extremely cautious about withdrawals. Below are the pitfall experiences I have accumulated over the years, shared with every cryptocurrency friend:
1. ✅ Try to use the Mastercard Hong Kong card for withdrawals
This is the method I recommend the most:
The Mastercard Hong Kong card belongs to an overseas account and is isolated from the mainland system;
Achieve true '0 freeze card risk';
User demographic: international students, foreign trade practitioners, cryptocurrency players, high-risk personnel, etc.;
Disadvantages: there are handling fees, but in the face of safety, these are not a big deal.
You can simply understand it as: a secure bank card registered overseas but usable in the domestic market.
2. ✅ If using traditional exchanges OTC, be sure to pay attention to these details
Only accept real-name transfers, refuse non-real-name funds;
The other party's bank card flow must have been deposited for more than 3 days;
Before a large U withdrawal, review whether the merchant's funds are stable and legal;
It's best to sign an electronic agreement and keep chat records, just in case;
If you encounter problems, actively choose to report to the police, do not settle privately.
👉 Don't think it's troublesome; protecting the safety of your funds is always more important than being convenient!
3. ❌ Offline withdrawals are highly discouraged for ordinary people
The biggest problem with offline transactions is: once something goes wrong, it is almost impossible to clarify and it is difficult to protect your rights.
Offline trading involves:
Trust issues
Funds tracking issues
Legal evidence collection issues
Unless you know and trust the other party extremely well, this path is not suitable for ordinary people.
4. ✅ Asset structure recommendations (low-risk model)
It is recommended to manage trading funds according to the following ratio:
Only take 1/5 of the total funds to invest in cryptocurrency;
In cryptocurrency funds, at most only 1/10 is used for futures;
Before each large transfer, do a thorough review and preparation;
Maintain multiple accounts to disperse funds and prevent 'all-in-one'.
Fourth, summary: trading cryptocurrency itself is not illegal, but there are significant compliance risks in fund flows.
Although trading cryptocurrency is not illegal in China, **'whether the receiving account is mixed with involved funds'** is the root of your potential problems.
So we must recognize the reality:
Trading funds are not clearly protected in the judicial system;
Once involved in a case, even if you are innocent, you may have to bear the cost;
Therefore, the withdrawal channels, secure accounts, and trading counterparts must be screened thoroughly in advance.
