Not long ago, I was smoothly selling USDT, so how did it suddenly get linked to 'fraud'? Many newcomers in the crypto space have encountered such distressing situations when converting digital assets to fiat. Don't worry, today I'll clarify the underlying issues in simple terms.
1. Why was there no issue at the time, but now it has come to light?
Many people find it hard to understand: at the time of the transaction, the bank didn't say anything, and the platform didn't warn of risks, so why did issues arise months later? The problem lies in the delayed tracing of funds.
Fraud gangs or gray industries might use victims' money to pay you, and you might think you've encountered an ordinary buyer; they might also use 'intermediary cards' or someone else's account, or the payment account might not match the actual operator. At this point, when you receive and release the currency, it may seem normal—after all, banks and platforms cannot instantaneously determine whether the money is 'dirty money.'
It could take weeks or even months, but once the victim reports to the police, they will trace back along the flow of funds, and the bank will submit suspicious transaction reports. Following the money trail, your account may become one of the nodes, and the bank or police will naturally contact you, or even temporarily restrict your account.
But don't worry, this doesn't mean you are 'deemed a criminal'; it's just a normal process of funds chain verification.
2. What operations are likely to make you 'fall into a trap'?
Not all OTC transactions will be scrutinized, but the following behaviors carry higher risks:
- Frequently receiving money from strangers while constantly changing bank cards and logging in from different locations;
- Using terms like 'coin', 'USDT', or 'digital currency' in transaction notes, or frequently receiving large amounts of money late at night;
- Your account acting like a 'transit station', where money comes in and is immediately transferred out, mixing corporate and personal receipts;
- The name of the remitter not matching the real name verified on the platform, or not matching the person you're chatting with.
These details may seem insignificant, but they could make you the focus of verification.
3. Don't panic upon receiving a fraud notification! Here's the most reliable way to handle it.
If you encounter such a situation, first stabilize yourself and don't be intimidated. Remember these key points:
The police or bank will not ask you to transfer money, nor will they request verification codes or online banking passwords. They will provide you with a formal document number or unit name. If the other party makes such requests, hang up immediately and call back to verify using the official number. If they say 'add for private chat' or 'remote screen sharing,' it's likely a scam, so be cautious.
Do not transfer money to unfamiliar accounts privately. Even if you need to return funds involved in a case, you must go through accounts and processes designated by the police or court, and always ask for a formal receipt or proof of case closure or withdrawal. You have the right to request formal documents from the other party or have the police provide written clarification. Never engage in 'private transfers' to avoid falling into a second pit.
If your account is temporarily restricted, do not resist; keep transaction records and chat evidence, as cooperating with the investigation can actually resolve the issue more quickly.
4. What are the possible outcomes after the incident?
After being notified of potential fraud, the outcome may not necessarily be bad, mainly depending on the verification situation:
- If the materials are complete and the transaction records are clear, verification might directly resolve the doubts;
- The account may be temporarily restricted, limiting deposits and withdrawals from ATMs, which will be restored once the investigation is completed;
- If the funds are indeed related to the case, that portion of the amount may be stopped or frozen, and you'll have to wait for the case to progress;
- You may be placed under risk control observation, making future transactions subject to random checks, at which point you'll need to operate more cautiously.
The processes and time frames vary by location, but the more complete your materials and the more cooperative your communication, the quicker the resolution.
5. Want to avoid pitfalls? Keep these points in mind.
Rather than panic after the fact, it's better to prevent in advance. These points can help you reduce risks:
Before the transaction, only use the official P2P or escrow functions of mainstream platforms. Check the buyer's order volume and good review rate to confirm they are using their real name; only accept money from accounts that match the buyer's real name on the platform, and firmly refuse third-party payments or company payments; break large transactions into smaller orders and complete them in segments during the day; clarify with the other party in advance and avoid using sensitive terms in the notes; neutral terms like 'order number' are best.
During the transaction, confirm that the name of the remitter matches the buyer's real name before releasing the currency; keep chat records and payment receipts, and it's best to create a comparison table for large transactions.
Accounts and tools should also be kept isolated: open a dedicated bank card just for OTC payments, and do not mix it with personal or company accounts; use fixed devices and networks to log in, and minimize operations from different locations or using different IPs; do not help others collect or transfer funds, to avoid becoming a 'transit account.'
Ultimately, standardized operations are the most stable. If problems arise, calmly cooperate with the verification, as this will ensure smoother fund transfers.
