Here’s a detailed article explaining the risks of large withdrawals in the cryptocurrency space and how to avoid being targeted by bank risk control! (Super comprehensive + practical)

Whether for newcomers or veterans in the cryptocurrency space, there are many confusions about withdrawal issues. Newcomers fear they can't withdraw money, and veterans fear encountering dirty money.

Newcomers don't need to worry too much about small transactions. After all, the domestic OTC market is peer-to-peer (C2C) trading, where there are buyers and sellers, so there will always be C2C trading methods available. Currently, the C2C trading markets of Binance and OKX are still stable. Find reputable merchants, avoid being greedy for small profits, and you can use it with peace of mind.

Next, let's focus on the concerns of veteran cryptocurrency users about the freezing of withdrawal bank cards, which is the worry about receiving dirty money.

The following content is lengthy but full of valuable information. Specific cases can be consulted for resolution.

Directory

1 What is dirty money

2 Characteristics of dirty money

3 How to deal with dirty money issues when cashing out

4 How to deal with 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 RMB. This can be done repeatedly for arbitrage.

But the market is not foolish; the arbitrage has already been leveled.

The reason for this is that the merchant using fiat currency to buy USDT (i.e., listing at 6.38) has dirty money, so they are willing to buy USDT at a price higher than the market price to offload their dirty money, and you become an accomplice in money laundering.

Before 2018, the C2C market was relatively normal. Afterward, telecom fraud and various types of dirty money aimed to pass through the cryptocurrency C2C market. The authorities tracking dirty money are now stricter in this area; any card that flows through dirty money will be frozen to assist in investigations.

Characteristics of dirty money

It is very similar to an infectious disease. Highly contagious and latent, it doesn't show on the surface. Therefore, it has 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 also infect the new card.

2. Before freezing, you don't know which card or money has problems. You only know after it is frozen, so it's somewhat unpredictable.

How to deal with dirty money issues when withdrawing

1. When withdrawing, find merchants with high transaction volumes, long registration times, and normal prices (selling price lower than market buying price), and do not seek small gains:

Generally, transactions with over 2000 transactions, registered for more than a year, and priced below the buying price. Those with small transaction volumes, registered within a month, and priced in the top few almost all have problems.

2. Use seldom-used empty cards to receive money, keep the amount on each card low, and try to transact with only one merchant per card. Isolate the deposits for 1-3 months, and only transfer to the main card after confirming it is not frozen. Since we don't know which merchant has issues, it's purely a matter of probability, so we need to minimize potential losses from freezing. By isolating this way, even if one card is frozen, it won't be a big deal; just wait for the issue to be resolved.

How to deal with a frozen bank card

Advanced thinking

1. If you have a lot of money and have a demand for US dollars, you can open an account on the US dollar exchange Kraken, withdraw USDT to cash out as USD, and then withdraw it to your USD card.

2. Some people immediately pay off their credit cards/loans after receiving money, or invest in financial products, or enter the stock market; this generally has a lower probability of freezing.

3. Using a bank card is better. Alipay and WeChat cannot reduce the probability of freezing.

Summary:

As long as operations are handled properly and one does not seek small gains, the probability of encountering dirty money will be greatly reduced.

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