Pay attention to the following points, which can effectively prevent receiving dirty money and having the card frozen:
(1) For OTC transactions, try to choose large platforms like Binance and OKEx. These platforms have good communication channels and risk control methods with regulatory and law enforcement agencies on the mainland.
(2) Try to choose OTC platforms that support T+1/T+2 withdrawal strategies. Although you cannot withdraw immediately after selling currency, it reduces the risk of being suspected of money laundering through OTC transactions. For example, Binance T+1 and Huobi Strict Selection Trading (compared to free trading, T+2 withdrawal).
(3) Avoid using stablecoins like USDT for OTC transactions; try to use mainstream coins like BTC and ETH for OTC trades.
(4) The bank card used for OTC transactions must be a separate card that is not commonly used, separated from salary cards, so that even if it is frozen, it will not affect the use of other funds, and it will also be easier to clarify the flow of funds during the investigation.
(5) For OTC transactions, it is best to use cards from local banks, such as local urban commercial banks or rural commercial banks. Large and medium-sized joint-stock commercial banks like Agricultural Bank of China, Industrial and Commercial Bank of China, and China Construction Bank have branches all over the country, making it easy for law enforcement to freeze them directly.
(6) Avoid frequent transactions with fixed merchants and do not conduct frequent transactions with fixed users. Indirectly purchasing more than 3 times in one day from the same user, or buying and then selling within a few hours, can be very dangerous and may raise suspicions of money laundering.
(7) Find reliable OTC merchants for transactions. Try to take large orders from major merchants and market makers, and place fewer orders, avoiding problematic merchants. In fact, as an ordinary user, it is difficult to discern which merchants are reliable. For example, friends who frequently traded with Huobi Blue Shield service merchants also had their cards frozen.
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(8) Reduce the frequency of withdrawals and increase the cash amount.
(9) After OTC transactions, do not transfer to other bank cards to avoid contaminating other funds; cooperating with investigations can be troublesome. If you urgently need money, you can withdraw from an ATM or spend it online.
(10) Try to choose weekdays for cashing out. It is best to conduct transactions during normal working hours, such as between 9 am and 9 pm.
(11) Do not transfer funds 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.
After suffering from a frozen card, how should we explain to prove that we did not participate in money laundering activities?
(1) Individuals engage in normal Bitcoin buying and selling transactions, not involving money laundering or other transactions;
(2) Being unaware of the criminal implications of debts received from selling currency;
(3) Cooperate by providing all transaction records, chat records, on-chain transfer records, etc.;
(4) It is important to be very clear that personal trading of digital assets does not violate the law.
For OTC transactions, if the withdrawal bank card is frozen due to police and judicial freezing, what materials will the other party require individuals to provide in order to lift the freeze?
Commonly required materials include: complete transaction records, such as bank statement, on-chain transaction records, trading platform order records, WeChat chat records (including content related to the transaction process), and other evidence that can prove the legality of assets, even income proof, etc.
So, once unfortunate enough to receive dirty money and have the card frozen, how can it be resolved?
First, go to the bank to understand the reason for the frozen card and where the authority for freezing the card is located.
The reasons for card freezing can be summarized into two categories: bank risk control and police freezing:
1. Bank risk control. Reasons for bank risk control may include frequent large transfers in recent days, concentrating funds in and then dispersing them out, fast in and out transactions, frequent night transactions, and not leaving a balance in the account, collectively referred to as transaction abnormalities. This triggers the bank's anti-money laundering risk control system.
2. Police freezing. Usually occurs when the account has received other illicit funds related to a case, which may have been received directly or indirectly. Police will freeze all associated accounts that the related transactions have flowed through to prevent fund transfer and facilitate investigation.
What are the solutions for the two reasons for card freezing?
1. Regarding bank risk control freezes:
Bring your ID card and bank card to the bank for communication, and submit relevant transaction proof. If there are any police-related policy instructions involved, you will also need to cooperate with the local police department. If it triggers the anti-fraud center monitoring, you will need to fill out the anti-fraud application form as required for anti-fraud and only then can it be unfrozen after approval.
2. Regarding police and judicial freezes:
First observe for 3 days. See if the temporary hold has turned into a formal freeze (continuing for six months). If it turns into a formal freeze, go to the bank immediately to check the name of the police unit that froze the card, the case number, and the name of the officer in charge. Then contact the responsible officer to understand the reason for the freeze and cooperate with their investigation. After verifying that you have not committed any illegal or disciplinary acts, your account will be unfrozen.