Last month, a business friend of mine almost got into trouble—for the sake of earning a few extra points of premium, he sold 2,600 USDT through an unfamiliar channel. As soon as the money arrived, his bank account was frozen, and even the store’s purchasing funds were locked up.

When the matter reached the police station, the officer asked him three questions that left him stunned:

First question: "Are virtual currency transactions protected by law?"

The answer is rather awkward—the transaction itself isn’t illegal, but if something goes wrong, the law won’t protect you, and you bear all the risk yourself. This is clearly stated in the 2024 judicial interpretation.

Second question: "Why do you have to return the money?"

The 26,000 yuan in his account was identified as illicit funds, so he had to negotiate compensation with the victim. In the end, he returned 10,000 yuan just to unfreeze his card, which meant he worked for nothing and lost money on top of it.

Third question: "Will there be a criminal record?"

That depends on the degree of involvement. A first-level implicated card affects all your accounts, while a second-level card has a smaller impact. Fortunately, he was only implicated, and after being cleared of suspicion, there was no record left.

This incident made me rethink how to cash out safely, and I’ve summarized a few hard rules:

The channel must have been operating in the industry for at least a year; there must be no fewer than 5,000 real transaction records; more inflow than outflow indicates channel health; the platform must be certified, and the payer should be fixed; if possible, use e-wallets instead of bank cards; small, scattered transactions are safer than large, concentrated ones.

Why are e-wallets more stable? Because bank cards are under the closest regulatory scrutiny, whereas e-wallets are used for daily consumption, and small, dispersed transactions generally pass smoothly. Truly reliable channels aren’t about how fast you can cash out, but about having no freezing issues over the course of a year.

Last year, the central bank released some alarming data—over 32,000 virtual currency fraud cases, involving 8.9 billion yuan. In November 2025, the authorities once again reiterated a crackdown on illegal financial activities related to virtual currencies, and over 8,000 accounts were frozen that month alone.

At the end of the day, don’t take risks just for a small exchange rate difference. Don’t touch money from unknown sources. The money you earn is only truly yours once it’s in your pocket.