"Compared to transfers on virtual currency exchanges, face-to-face cash settlement can bypass bank censorship, ensure that the transaction is completed in real time, and prevent any party in the transaction from taking money and running away. It has become a popular transaction trend in Hong Kong." A person in charge of a virtual currency exchange shop in Hong Kong said.

Real-name authentication is required to purchase Bitcoin on a regular virtual currency exchange. Investors need to authenticate personal information on the platform, and upload ID card, passport, address proof and other information according to the prompts; use Bitcoin ATM to subscribe Bitcoin, you need to pay up to 10% There is a 15% handling fee, and the ATM machine counts the cash one by one, which makes the transaction path traceable.

One-handed money, one-handed currency, hidden over-the-counter transactions

"We do Hong Kong dollars," Li Ying (pseudonym) said, and he provides bitcoin and Tether (USDT) to receive legal currency (Hong Kong dollars). "The seller only needs to provide a virtual currency receiving address. After the transfer is confirmed, the receiving Payments can be counted and checked face to face. Compared with on-site transactions, we will not ask the buyer's source of funds and identity information, and there is no upper limit on the amount, as long as the commission is negotiated in advance."

“Many people think that this kind of off-exchange trading with one lot of money and one lot of coins is safe, but there are actually many potential risks.” An expert from CoinHolmes, an anti-money laundering situational awareness platform under PeckShield, said.

He explained that from the buyer's point of view, since the seller's details are not known, it is easy to receive virtual currency from unknown sources, and thus be involved in money laundering cases without knowing it.

According to CoinHolmes observations, some merchants and players who have participated in OTC transactions have had their bank cards frozen during the "frozen card wave" launched in my country in 2020. What's more, they may cooperate with relevant law enforcement agencies for investigations due to involvement in money laundering cases.

From the seller's point of view, wandering the streets with a large box of cash is easy to be spotted. In the cases that CoinHolmes assisted in the investigation, it was found that the magnitude of OTC transaction funds is often above seven figures. Recently, CoinHolmes observed from the over-the-counter transaction cases assisted by the police that over-the-counter transactions have begun to turn to face-to-face cash transactions. If the cash is not stored safely in time, it will be robbed and robbed, and it may encounter "killing pigs". ". Recently, USDT over-the-counter transactions have been hijacked in mainland my country and Hong Kong.

"In the case we recently assisted in the investigation, there were several off-site transactions of hundreds of thousands of yuan in cash exchanged for virtual currency by forging the identity of the buyer through social platforms. The seller introduces a situation that has been prepared in advance. Generally, this kind of transaction is arranged when the sky is dark and dark, and chooses a less populated place. After receiving the transfer, it cooperates with accomplices to rob. Most of these buyers are organized Southeast Asian gangs," said CoinHolmes anti-money laundering expert.

It is worth noting that in such cases involving black and gray industries, criminals are increasingly favoring USDT, which is anchored to the US dollar, has a stable value, and is also occult.

According to data from the China Procuratorate Network, there have been 85 criminal cases related to USDT since 2020, and there were only 5 cases before 2020.

Veteran of the "Speeding Car Party" set up a deal

2 South Asian buyers and Mr. Li completed the transaction in the buyer's car. Mr. Li transferred 15 bitcoins to the designated account through the online account, and the buyer gave 3.6 million Hong Kong dollars in cash. When Mr. Li counted the money on the car , the buyer’s private car was parked on a certain hillside, when another private car approached, jumped off three South Asian men, broke into the door and snatched the delivered 3.6 million in cash and 2 mobile phones, then fled quickly, and then the buyer took Mr. Li Kicked out of the car and drove away.

It is reported that from March to December 2020, the victim successfully conducted 5 to 6 virtual currency transactions with South Asian buyers through an online trading platform, making a profit of 100,000 Hong Kong dollars. After trading 1 million Hong Kong dollars in bitcoin, he prepared to Make a fortune, but unexpectedly fall into a trap.

Half a month later, on January 18, Ms. Yin was robbed of 3.5 million Hong Kong dollars by three men armed with knives and sticks when she was conducting cash transactions with others in USDT, a stablecoin anchored to the US dollar. The hijackers locked the woman in a unit. And quickly drove away. It is reported that Ms. Yin has completed 3 transactions with the "buyer", each with an amount of about 600,000 to 700,000 Hong Kong dollars. Due to the long-term "pleasant cooperation" between the two parties, this "large transaction" was facilitated.

According to Hong Kong media reports, there have been precedents for robbery in South Asia under the guise of virtual currency delivery. In 2018, a man mistook the seller who was pretending to be a robber, and carried 1.4 million Hong Kong dollars in cash in face-to-face transactions according to the other party's instructions. snatch away.

According to CoinHolmes' observation, there have also been cases of "black eating black" in over-the-counter transactions in the mainland. According to Judgment Documents.com, from July to September 2018, a hacker group invaded a fraudulent platform in the name of "blockchain" four times and stole 5.12 million yuan in assets.

After the successful intrusion, the hackers contacted an overseas money laundering platform. The overseas money laundering platform requires 70% of the commission as a commission. After the hackers paid a high fee, they did not expect the money laundering platform to "run away" after swallowing all the assets. The defendant, Deng Mou, confessed in court that the five of them contacted the money laundering platform in the car at that time.

Since 2020, our country has carried out anti-money laundering and card cancellation operations in full swing. Virtual currency has become a crackdown field, and some virtual currency OTC vendors have been affected as a result. This has also forced OTC to turn to face-to-face transactions. "Taking risks" is undoubtedly putting yourself in greater danger.