In the world of cryptocurrency, some people focus on K-line charts to calculate returns, but few consider that a single transfer or coin issuance could potentially cross the legal line. From a college student receiving a four-and-a-half-year prison sentence for issuing "Dogcoin" to a prison sentence for laundering 25,000 yuan, these real-life cases reveal a harsh truth: cryptocurrency is not beyond the law, and some "routine" operations already violate criminal law. 1. Reselling USDT for foreign exchange? Beware of a 13-year sentence. Case study: Wan Mouyuan's team in Sichuan used the "RMB → USDT → USD" scheme to trade 234 million yuan in foreign exchange over two years. The court sentenced them to 13 years and 6 months in prison and a fine of 1.14 million yuan for "illegal business operations." What constitutes a crime? Individuals in China are limited to an annual foreign exchange quota of $50,000. Using USDT to circumvent regulations is like using an "underground bank," directly disrupting foreign exchange regulations. Even minor offenses—such as someone receiving USDT in cash and reselling it for a profit—can be treated as illegal business operations if the amount involved is significant (e.g., over 5 million yuan), with a maximum sentence of 15 years. Reminder: Don't assume "peer-to-peer" transactions are covert. Bank statements and on-chain records provide irrefutable evidence. 2. Helping others transfer cryptocurrencies and profiting from the price difference? Even a transaction volume of 25,000 yuan can constitute money laundering. Case study: Unemployed young man Xiao Wu helped a "money laundering company" transfer funds using USDT to pay off his credit card. The total transaction volume was only 25,000 yuan, but he profited 5,000 yuan. He was sentenced to six months' probation and a 2,000 yuan fine. The terrifying part: Money laundering isn't determined by the amount involved; it only depends on whether you were aware that the funds were illegally obtained. Even if you simply use your bank card to transfer cryptocurrencies for strangers, as long as the funds involve fraud or gambling, you could be implicated. Someone who helped transfer 90,000 yuan and profited 147 yuan was still sentenced to nine months. Reminder: Avoid "running points" or "arbitrage" jobs. The commissions they offer could be paid for your prison sentence. 3. Issuing "Dogcoin" and withdrawing the pool within seconds? A college student received 4 and a half years in prison. Case: Yang, a post-2000 college student, issued the "Dogcoin" BFF. Someone bought it for 50,000 USDT, but he withdrew the liquidity within 24 seconds, receiving only 21.6 USDT in return. The court sentenced him to 4 years and 6 months for "fraud." What's the dispute? The defense lawyer argued that "the platform allows for pool withdrawal," but the court held that he deliberately imitated legitimate projects to defraud money, acting "for the purpose of illegal possession." Even if the price of the coin subsequently increased, as long as someone suffered losses, it would still be considered fraud. Reminder: Issuing coins is not "opening blind boxes," especially when imitating other projects and engaging in false advertising, which can easily be considered fraud. Fourth, using virtual currency for pyramid schemes? 17 levels, 210 million yuan involved, principal offender sentenced to 6 years. Case: Li's team, under the banner of "blockchain," issued virtual currencies A, B, and C, creating a 17-level pyramid scheme involving 210 million yuan. The principal offender was sentenced to 6 years and fined 500,000 yuan. The scheme is revealed: These projects rely on "rebates for recruiting members," claiming "one coin, one luxury home," but in reality, they use new members' funds to distribute dividends to existing members. Virtual currency is just a cover; the essence of the scheme is still a pyramid scheme. Even if you haven't reached level 17, as long as you recruit more than 30 people and are at level 3 or above, you could be sentenced.
Reminder: Anyone who tells you to "buy coins and recruit downline members to earn income" is 99% a pyramid scheme.
V. Helping others "run points" to launder money? 7 people shared 8,500 yuan, with a maximum sentence of 4 years.
Case study
Seven people used Bitcoin to "run points" to help upstream transfer 9 million yuan in stolen funds. The highest share was only 8,500 yuan, resulting in a maximum sentence of 4 years.
Legal boundary: "Concealing and concealing the proceeds of crime" Regardless of how much you earn, what counts is how much stolen money you helped transfer. A couple laundered 15 million yuan and were each sentenced to over three years in prison. The fines were 10 times higher than the "handling fees" they earned.
Reminder: If a stranger asks you to use your cryptocurrency account to "transfer funds," never agree—your account could become a "transfer station" for the stolen funds.
Sixth, Is Stealing Virtual Currency Considered Stealing? 360 Employee Stolen 2.5 Million Yuan and Received a Prison Sentence
Case Study
Three 360 employees exploited a vulnerability to steal virtual currency from others and exchanged it for 2.5 million yuan. They were ultimately sentenced for "illegally obtaining computer information."
Key Finding: The court has clarified that virtual currency is "virtual property" and is protected by law. Stealing coins, like stealing a wallet, can constitute theft; if a Trojan horse or hacking technique is used, it can also constitute the crime of "illegally obtaining computer information." Someone previously committed a Bitcoin robbery and was sentenced for "robbery." Reminder: Don't think you can do whatever you want just because you're "on-chain anonymity." The police's tracing technology is more advanced than you think. Summary: Cryptocurrency "Safety Rules" Don't use virtual currency for foreign exchange transactions, regardless of the amount. Don't transfer coins or run points for strangers, no matter how high the commission. Maintain compliance with coin issuance regulations; false advertising and rapid withdrawal from pools may indicate fraud. Be wary of pyramid schemes that "buy coins to recruit others." Don't steal or rob; virtual currency is protected property. The risks of cryptocurrency extend beyond price fluctuations. Understanding these case studies will help you succeed in this field—after all, no amount of profit can compare to freedom. Disclaimer: The content of this article is for reference only and does not constitute any investment advice. Investors should view cryptocurrency investments rationally based on their own risk tolerance and investment objectives and should not blindly follow the trend.
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