Case One: Zhang San opened an OTC studio, sold coins to a currency exchange intermediary, and was sentenced as the principal offender of 'illegal operation'.
Zhang San is a cryptocurrency person who was involved in OTC business a few years ago. He stopped because funds received into his bank account were related to fraud. Later, Zhang San had the idea of starting OTC business again. This time, he set up a studio and recruited several people to help with trading on exchanges. To avoid receiving illicit funds, Zhang San decided to collaborate with several currency exchange intermediaries at the beginning of the studio's establishment. He thought that the funds received were from students exchanging currency, not from fraud or gambling, so it would be fine. The model was as follows: Zhang San would buy USDT in the market and sell it to the currency exchange intermediaries. The intermediaries would either transfer RMB to Zhang San or allow clients needing currency exchange to transfer RMB to Zhang San; then they would convert the currency abroad in a legitimate virtual currency exchange and transfer it to the overseas accounts provided by the clients. Later, the currency exchange activities were discovered. During questioning, Zhang San admitted that this OTC business was mainly to cooperate with the currency exchange intermediaries, so he was prosecuted as the 'principal offender of illegal operation'.
Case Two: Li Si sold coins to a currency exchange intermediary and was sentenced as an accomplice of 'illegal operation', receiving a three-year sentence with three years suspended.
Like Zhang San, Li Si is also a merchant engaged in virtual currency OTC business, mainly making profits by buying low and selling high on USDT. During Li Si's OTC business, several currency exchange intermediaries in Japan instructed clients needing currency exchange to transfer RMB to Li Si. Li Si then transferred the corresponding USDT to the currency exchange intermediaries, who would exchange the USDT for other virtual currencies through a certain virtual currency exchange in Japan, converting it into yen, or directly transferring USDT to yen to the clients, thus achieving the goal of 'illegal currency exchange'. The behavior of the currency exchange intermediaries was determined by the investigating agency to be suspected of illegal operation, and Li Si was criminally detained as an accomplice of illegal operation and was arrested by the procuratorate. When questioned, Li Si never admitted to 'knowingly' participating in illegal currency exchange, but based on a message in Li Si's chat records stating, 'Recently, students need a large amount due to the new semester', the investigating agency judged that Li Si was clearly aware that selling coins to the other party was for currency exchange. Ultimately, Li Si was recognized by the court as an accomplice of illegal operation and was sentenced to three years in prison, with three years suspended.
It can be seen that the models of the Zhang San case and the Li Si case are almost the same; both involve OTC merchants selling virtual currencies to currency exchange intermediaries, who then convert the virtual currencies into foreign currencies. However, the penalties for the principal offenders and accomplices of illegal operation are completely different! A significant part of the reason for the difference in outcomes between the two cases is likely due to the differences in the statements made by the parties involved!
