Author: Xiao Sa lawyer

In the process of handling various cases involving cryptocurrency players, the Sajie team found that due to my country's vigorous crackdown on online fraud, cross-border money laundering and other crimes in recent years, such as the implementation of "card-cutting operations", many partners were "accidentally injured", and their bank cards were often frozen during the flow and exchange of personal funds. Today, the Sajie team will combine the practical experience of handling the unfreezing of bank cards involving currency to explain the whole process of bank card unfreezing involving currency in detail to help everyone deal with such problems.

The complete thawing process

1. Query frozen units

When a bank card is frozen because of virtual currency transactions, the first step is usually to go to the bank where the account is opened to inquire about which law enforcement agency has taken this measure. However, this inquiry process may not be smooth and unobstructed. The Sajie team encountered this in the process of handling a case. When a user involved in cryptocurrency transactions tried to inquire about the reason for the freeze, the bank employee immediately reported it to the bank manager as soon as he heard that he was involved in virtual currency transactions and rejected the customer's inquiry application.

In fact, customers have the right to ask the bank to provide this information in accordance with relevant laws and regulations.

According to the Regulations on Account Freezing jointly issued by the China Banking Regulatory Commission, the Supreme People's Procuratorate, the Ministry of Public Security, and the Ministry of State Security, Article 25 clearly stipulates that once the public security organs have completed the freezing procedures, the bank is obliged to inform the customer or deposit unit of the specific circumstances of the account freezing when inquiring. This provision gives you, as an account holder, the right to understand and master the status of your account. Therefore, if you encounter a situation where the bank does not cooperate, you can use this to safeguard your right to know.

2. Restore the initial source of funds

Tracing and proving the source of funds for purchasing virtual currencies (such as USDT) is a key step in the process of unfreezing bank cards. This may include showing proof of personal salary income, or providing current work status and relevant documents, such as business licenses. These materials will help prove that the source of income for purchasing crypto assets is legal, so as to apply for unfreezing. The point is that we need to show the relevant authorities a clear and legal path of funds flow to prove that the transaction is not based on illegal funds.

3. Provide transaction records

In order to prove that the purchase of virtual currency (such as USDT) is legal and legitimate, we also need to provide complete transaction records and evidence. This may include transaction order records made on exchanges, or chat records with currency traders through social platforms such as WeChat. Through these detailed transaction records, we can clearly trace and display your purchase behavior, thereby proving that these transactions were conducted in accordance with normal market rules and processes without any improper or illegal behavior. In short, these records are key evidence to prove the legitimacy of the transaction.

4. Prove the source of funds

In the case of a frozen bank card, it is crucial to demonstrate the legitimacy of the source of funds and the good faith and ignorance of one's own transactions. To this end, we need to provide a series of evidence to prove the legal source of the funds in the account. This includes:

Sell ​​u (or other crypto assets) and withdraw cash orders: provide order records of individuals selling virtual currencies and withdrawing cash on exchanges.

Communication records with merchants: Displays chat records when individuals conduct transactions with exchanges or other merchants. These conversations can reflect the transaction intentions and processes.

Evidence of offline transactions: If there are transactions conducted offline, relevant chat records and transaction proofs are also necessary.

Bank and payment platform transaction records: Provide transaction records of frozen bank cards, as well as transaction records of related payment platforms such as WeChat and Alipay. These records can serve as direct evidence of fund flow.

According to the experience of the Sister Sa team, ensuring that these documents and records are detailed and accurate can help prove that the source of your funds is legal during the unfreezing process, and at the same time show that the individual has no misconduct or knowingly participated in illegal activities during the transaction. Some freezing units may also require printouts of these records, so it is wise to prepare these materials in advance.

5. Explain the legality of the transaction

According to experience, when dealing with bank card freezing, the relevant authorities may question the motivation for virtual currency transactions and ask whether the individual is aware of the relevant legal provisions. The regulatory authorities may point out that although there are currently no clear legal provisions that characterize virtual currency transactions as illegal, such transactions are risky and there is usually controversy over whether they are protected by law.

How to provide relief if thawing fails?

Although the method is good, it cannot guarantee that we can successfully thaw. So what can we do if the thawing fails?

1. Complaint or accusation

First of all, if you have objections to the freezing measures and believe that the freezing measures are inappropriate or exceed the statutory period, you can seek relief through appeal or complaint. According to the "Procedures for the Handling of Criminal Cases by Public Security Organs", the parties, defenders, litigation agents, and interested parties have the right to appeal to the public security organ that made the freezing decision. During the appeal process, you need to submit relevant supporting materials to prove that the freezing measures are inappropriate or irrelevant to the case. The public security organ shall make a handling decision within 30 days from the date of receipt of the appeal and reply to you in writing.

2. Appeal to the higher-level public security organ or the People’s Procuratorate at the same level

In the case of a frozen bank card, if the parties are dissatisfied with the decision of the freezing agency, they can appeal to the higher-level public security agency or the People's Procuratorate at the same level through legal channels. According to Article 191 of the "Procedures for Handling Criminal Cases by Public Security Organs", you should submit detailed appeal materials, including personal identity information, relevant documents on the freezing decision, evidence materials proving that the freezing measures are inappropriate or irrelevant to the case, and relevant legal basis. After receiving the appeal materials, the public security agency or the People's Procuratorate has the responsibility to investigate and verify and make a written reply within 30 days. If the higher-level public security agency finds that the lower-level agency has committed illegal acts or improper handling, it shall order it to correct it within a time limit. It is important that you should fully prepare the relevant materials during the appeal process to ensure their completeness and accuracy, so as to provide strong evidence support for the appeal.

3. Court proceedings

If the frozen funds are wrongly deducted or the freezing measures are obviously inappropriate, and other remedies have failed to solve the problem, you can also seek help from the court by filing an administrative lawsuit. First, file an administrative lawsuit with the court, requesting the court to rule to revoke the improper freezing measures or return the funds that were wrongly deducted; second, submit litigation materials and provide relevant evidence to prove the inappropriateness of the freezing measures or their irrelevance to the case; finally, wait for the court's trial and judgment. According to Article 51 of the "Regulations on the Application of Seizure and Freezing Measures by Public Security Organs in Handling Criminal Cases", the parties and their defenders, litigation agents, and interested parties have the right to file complaints or accusations against the improper behavior of public security organs and their investigators to ensure that their legitimate rights and interests are properly handled.

4. Lawyer assistance

The above process is often quite cumbersome and full of routines, so it is crucial to seek professional legal support throughout the process. Therefore, if you encounter a situation where a currency-related bank card is frozen, it is best to entrust an experienced lawyer to assist you in handling the unfreezing. Professional lawyers will conduct in-depth investigations and collect evidence, collect necessary evidence materials, and prove the inappropriateness of the freezing measures or their irrelevance to the case. Through professional coordination and communication with the freezing authority, the lawyer will strive to complete the unfreezing for you without being deducted or with minimal loss. The professional ability and experience of lawyers play a key role in this process, and can help you communicate more effectively with relevant departments to ensure that your legal rights and interests are properly handled.

Final Thoughts

In virtual currency transactions, the problem of frozen bank cards has become increasingly prominent, especially when the transaction involves illegal activities such as telecommunications fraud. Therefore, it is necessary to be extra cautious before withdrawing funds and verify the payer's identity information and transaction status as much as possible to reduce the risk of receiving stolen money.

That’s all for today’s sharing, thank you readers!