Workers' Daily: Abnormal trading of virtual currency may be suspected of criminal activity

ChainCatcher News, the Beijing Second Intermediate People's Court recently heard a case involving the use of virtual currency transactions to conceal and hide criminal proceeds. The defendant, knowing that the funds were criminal proceeds, assisted in their transfer and was sentenced to 3 years and 6 months in prison. In August 2024, Liu, aware that the cash held by He was criminal proceeds, sold USDT (commonly known as U coin) to He and received 200,000 yuan in cash, the whereabouts of which are now untraceable. It was found that the 200,000 yuan transferred by Liu was money defrauded from others.

The court's effective ruling stated that Liu, knowing it was criminal proceeds, still assisted in the transfer, which constituted the crime of concealing and hiding criminal proceeds. The court sentenced Liu to 3 years and 6 months in prison for the crime of concealing and hiding criminal proceeds, imposed a fine of 40,000 yuan, and ordered the confiscation of his illegal gains.

The judge indicated that defendants in cases of concealing and hiding criminal proceeds typically exhibit a profit-driven mentality and harbor a sense of luck. Many defendants succumb to the temptation of short-term high returns and commit crimes. Despite the increasing efforts in legal education against telecom and internet fraud, most defendants have some awareness that the property involved may be fraudulently obtained, yet some still fantasize that their concealing and hiding actions will be hard to detect, or that even if discovered, the consequences would not be severe, leading them to test the law.

The judge warned to be cautious of any requests for "abnormal transactions" under the guise of virtual currency, and not to be tempted by so-called "handling fees," "price differences," or other small profits, or to trust others' promises, participating in the buying, selling, or transferring of virtual currency or funds of unknown origin. Knowing that the funds are criminal proceeds yet still assisting in conversion, transfer, or cashing out may violate criminal law, constituting the crime of concealing and hiding criminal proceeds, and facing severe criminal penalties. (Workers' Daily)