Brother Jiu will provide a long article to explain the risks of large cash withdrawals in the crypto space and how to avoid being restricted by bank risk control! (Super comprehensive + practical)
Whether you are a newcomer or an old hand in the crypto space, there are many confusions regarding cash-out issues. New users are afraid of not being able to cash out, while veterans are afraid of encountering dirty money.
New users should not worry too much if they are only making small transactions. After all, the domestic OTC market is peer-to-peer (C2C) trading; there are people who want to buy and people who want to sell, so there will always be C2C trading methods available. Currently, the C2C trading markets of Binance and OKX are still stable; find merchants with high credibility, don't be tempted by small profits, and you can use it with peace of mind.
Next, let's focus on the concerns of older crypto users regarding the freezing of cash-out bank cards, specifically the worry about receiving dirty money.
The following text is long, but it's all practical information; specific cases can be consulted with me for solutions.
Table of Contents
1 What is dirty money
2 Characteristics of dirty money
3 How to deal with money laundering issues when cashing out
4 How to handle a frozen bank card
5 Advanced Ideas
6 Summary:
What is dirty money
If the buying price in the C2C trading market is lower than the selling price.
Theoretically, you can buy 1000 USDT at a price of 6.34 and then sell 1000 USDT at a price of 6.38, netting a profit of 0.04 * 1000 = 40 dollars = 280 RMB. This can be continuously looped for arbitrage.
But the market is not foolish; the arbitrage has already been neutralized.
The reason for this is that the merchants using fiat currency to buy USDT (i.e., quoting 6.38) are involved in money laundering, so they are willing to buy USDT at a cost higher than market price to offload their dirty money, and you become an accomplice in money laundering.
Before 2018, the C2C market was relatively normal. Later, telecom scams and various dirty money started to flow through the C2C market in the crypto space. The law enforcement agencies investigating dirty money are now quite strict, and any cards found to be involved with dirty money will be frozen to assist with investigations.
Characteristics of dirty money
It's very much like an infectious disease. Highly contagious and latent; it doesn't show on the surface. This brings two characteristics:
1. As long as this card receives dirty money, it will be infected and may be frozen. Transferring out from this card to any other card will infect the new card.
2. Before the freezing, you would not know which card or money had issues; you only find out once it’s frozen, so it’s somewhat unpredictable.
How to deal with money laundering issues when cashing out
1. When cashing out, find merchants with high trading volumes, long registration times, and normal prices (selling prices lower than market buying prices); do not be greedy for small gains:
Generally, for trading volumes over 2000 transactions, accounts older than one year, and prices lower than the buying price. However, accounts with small transaction volumes, registered for less than a month, and with prices among the top few are almost always problematic.
2. Use an unused empty card to receive payments, keep the amount on each card low, try to transact with only one merchant per card, isolate the funds for 1-3 months, and only transfer to the main card after confirming it hasn't been frozen. We don't know which merchants have issues; it's purely a probability game, so we need to minimize potential losses from freezing. By isolating funds first, even if one card is frozen, it won't be a big problem; just wait for it to be resolved.
How to handle a frozen bank card
Advanced Ideas
1. If you have a lot of money and need US dollars, you can open an account at the dollar exchange Kraken, withdraw USDT to cash out into USD, and then withdraw to your USD card.
2. Some people immediately use the money they receive to pay off credit cards/loans, invest in financial products, or enter the stock market; this generally has a lower probability of freezing.
3. It's better to use a bank card. Alipay and WeChat do not reduce the probability of freezing.
Summary:
As long as you operate properly and do not be greedy for small gains, the probability of encountering dirty money will be greatly reduced.
Key Point: The bull is still here! The bull is still here!! The bull is still here!!!
The altcoin season is coming soon. Brother Jiu has carefully selected several cryptocurrencies with the potential for hundredfold increases for loyal fans. Please continue to pay attention and follow Brother Jiu's steps to capture the next point of wealth growth! Keep up with Brother Jiu! Let's keep making profits!! Jump in below at 888!!!
Keep an eye on: x pepe $PNUT $DOGE $XRP
