Selling USDT and having your bank card frozen? Here are the solutions.
Why do transactions of USDT between individuals lead to frozen bank cards at best, and at worst, being classified as money laundering crimes? If an ordinary person has their bank card frozen due to buying and selling virtual currency, how should they communicate with law enforcement to both unfreeze the bank card and avoid criminal risks?
01 Unfreezing cards was actually not difficult in the early years.
As early as 2019, cases of bank cards being frozen due to virtual currency transactions were not uncommon. As long as one can provide evidence related to the transaction, proving it was a normal purchase or sale of virtual currency, the police usually unfreeze the bank card.
Because at that time, the cryptocurrency community was relatively simple, although many people entered the market out of speculation, the overall risk and criminal activities were relatively limited. Moreover, virtual currencies like Bitcoin, which have slower transaction speeds and larger price fluctuations, were not suitable as tools for money laundering by criminals.
Therefore, at that time, the police were relatively tolerant of virtual currency trading and did not strictly require compensation to the complainant to unfreeze the bank card.
However, with the emergence of stablecoins, the situation has changed.
02 'Card Disconnection' Campaign and Regulatory Upgrades
In October 2020, the state initiated the 'Card Disconnection' campaign to combat the illegal buying and selling of 'two cards' (bank cards and phone cards). This is because 'two cards' transactions are closely related to telecom fraud, cross-border gambling, and other criminal activities.
Against this backdrop, criminals began to turn to virtual currency trading. USDT, as a stablecoin pegged to the US dollar with strong liquidity, has become a 'money laundering tool' for criminals.
In September 2021, the People's Bank of China and ten other ministries jointly issued a notice regarding further prevention and handling of risks associated with virtual currency trading speculation, clearly stating the need to crack down on illegal financial activities related to virtual currencies.
With the tightening of policies and regulations, the judicial authorities' attitude towards virtual currency trading has gradually shifted from neutral to negative. This is why more and more people find that their frozen bank cards cannot be unfrozen for a long time after engaging in normal virtual currency trading.
03 Is your card really frozen innocently?
Before delving into solutions, ask yourself a few questions:
Do you understand the risks of buying and selling USDT?
Have you paid attention to the reasons for the abnormal transaction prices?
When the other party's account is abnormal and requests transfers through third parties, did you become alert?
Did you fulfill the necessary review and verification obligations during the transaction?
In many cases of frozen bank cards, there are indeed many cardholders who were implicated due to careless trading. However, there are also quite a number of people who ignored potential risks to profit from the price difference.
Normal investment returns are often proportional to risk, while some 'too good to be true' arbitrage opportunities often hide greater dangers behind them.
04 Increasingly severe crackdown
With the upgrading of new criminal methods like money laundering, judicial authorities are increasingly strict in reviewing virtual currency transactions. For law enforcement, since it is difficult to track down the real criminals, individual bank accounts that provide funding flows become key targets for investigation.
If your card is frozen, it is usually because your account funds are involved in a case reported by the victim. Although this may be an accidental event for you, from the police's perspective, your trading methods and behaviors may be viewed as suspicious of money laundering.
This is why law enforcement may ask you to provide more evidence to prove the legitimacy of your transactions.
05 Solutions after the card is frozen
Freezing your bank card does not mean you are identified as a criminal. In facing such situations, the most important thing is:
Eliminate personal criminal risks.
Promote the unfreezing of your bank card through effective communication.
Here are some feasible steps:
Proving Innocence:
Provide complete transaction records: Show the details of transactions with the other party, including transfer records, chat records, and more.
Prove the legality of your income source: Provide stable and legal income proof to indicate that your funds are flowing clearly.
Explain the necessity of the transaction: Clarify the reasons and processes for the transaction, and try to demonstrate your reasonableness and legality.
Reasonable communication:
Avoid emotional confrontation: Do not get entangled in emotional expressions like 'Why was my card frozen?' Instead, use actual evidence to explain the legality of the transaction.
Explain the impact of the freeze: Elaborate on how the freezing of the bank card affects your life and work, and express the desire to unfreeze it as soon as possible.
In practice, after eliminating your criminal risks, the police may help you issue relevant explanations, assist you in lifting bank risk control restrictions, and even coordinate compensation discussions with the complainant.
06 Written at the End
In facing the issue of frozen bank cards, the most important thing is to remain calm and rational. By providing sufficient proof materials and actively communicating, the probability of resolving the issue will be higher.
Of course, the best way to avoid falling into similar situations is:
Try to avoid trading with accounts of unknown sources.
Be sure to fulfill your obligation of prudent verification during the transaction.
Choose safe and legal trading methods, and avoid being greedy for small gains.
The risks of virtual currency trading cannot be ignored, but as long as you remain vigilant and operate reasonably and legally, most problems can be avoided.