Workers' Daily: Abnormal Transaction of Cryptocurrency May Involve Criminal Activities

BlockBeats News, August 21, Recently, the Second Intermediate People's Court of Beijing Municipality heard a case involving the use of cryptocurrency transactions to conceal and disguise criminal proceeds. The defendant, knowing that it was criminal proceeds, still assisted in transferring them and was sentenced to 3 years and 6 months in prison. In August 2024, Mr. Liu sold USDT (commonly known as U Coin) to Mr. He, knowing that the cash held by Mr. He was proceeds of crime, and received cash of 200,000 yuan. The whereabouts of the involved funds are now untraceable. Upon investigation, the 200,000 yuan transferred by Mr. Liu was money defrauded from others.

The final judgment of the court held that Mr. Liu, knowing that it was criminal proceeds, still assisted in the transfer, and his behavior constituted the crime of concealing and disguising criminal proceeds. The court sentenced Mr. Liu to the crime of concealing and disguising criminal proceeds, sentenced him to 3 years and 6 months in prison, imposed a fine of 40,000 yuan, and confiscated his illegal gains.

The judge stated that the defendants in cases of concealing and disguising criminal proceeds exhibit typical profit-seeking behavior and harbor a sense of luck. Many defendants cannot resist the temptation of short-term high profits and commit crimes. Although the publicity campaign for combating telecommunications fraud has been intensifying, most defendants have some awareness that the assets involved may be proceeds of fraud. However, some still harbor the illusion that their acts of concealing and disguising are hard to detect, or even if discovered, the consequences are not severe, thus daring to challenge the law.

The judge reminded everyone to be vigilant against any requests disguised as "abnormal transactions" under the guise of cryptocurrency. Do not be tempted by so-called "fees," "price differences," or other negligible gains, or trust promises from others to participate in trading, transferring, or converting cryptocurrency or funds of unknown origin. Knowing that it is someone else's criminal proceeds but still assisting in conversion, transfer, or cashing out may violate the criminal law, constitute the crime of concealing and disguising criminal proceeds, and face severe criminal penalties. (Workers' Daily)