Criminal Money Laundering Tactics Escalate OTC Merchants May Face Higher Risks

With the three associations and the Financial Development Commission of the State Council issuing a document, digital currency trading is negative and some OTC merchants are in a panic mood.

Criminal Money Laundering Tactics Escalate OTC Merchants May Face Higher Risks

Recently, with the three associations and the State Council’s Financial Development Commission issued a document, digital currency trading negative, some OTC merchants fell into a panic, their hands of USDT to sell a large number of, but in the process of selling, because of the lack of timely review of the buyer’s source of funds or in order to faster out of the gold, from the platform directly to over-the-counter transactions, resulting in the withdrawal process received stolen money, bank cards or platform accounts were frozen by public security.

The reasons for the freezing, we have made a detailed analysis in previous tweets, this time not to repeat, need to understand the reader can move.

A. Analysis of the new pattern of fraud

So why are so many OTC merchants still frozen after knowing the reason for the freeze? This is because of the escalation of network fraud, some criminals have taken advantage of the fluke and slack mentality of some OTC merchants, using a new mode of operation to launder the stolen money, in which OTC merchants are unaware, but objectively play an important role in helping, which leads to OTC merchants not only face great property losses, but also more serious personal risk. Below, we will criminals, recently used the mode of operation for a detailed analysis.

In the past, the fraudsters, after the fraud, often transfer the proceeds of fraud to their own purchase of bank cards, and then through a rapid transfer, the fraud scored to a dozen cards, and then through the water room, also known as the underground money laundering, and finally transferred to clean funds.

But as the country’s crackdown on telecom fraud continues to strengthen, especially after the Ministry of Public Security launched the Freeze Card Initiative last year, the card farmers have been weakened, and fraudsters are able to commit crimes with fewer bank cards. In this reality, more and more criminals are focusing on digital currency trading platforms, using the anonymity of digital currency and other features to launder the stolen money. Their means of laundering such money has been explained in our previous articles. However, with the tightening of platform regulation and the awareness of OTC merchants to take certain precautions, criminals soon upgraded their criminal methods. Details are as follows.

Now, common online frauds involving amounts under a million dollars are often laundered by criminals through the following methods.

First, the criminals lure the victim through online finance or other means. When the criminals feel that the victim has been fooled, they will go to the digital currency trading platform and place an order to buy the equivalent amount of USDT and other digital currencies. At this time, the OTC merchant will generally send their bank card and other related information to the criminals, so the criminals, with the OTC merchant’s bank account to the victim, let them directly to the bank card transfer, after the transfer is completed, the OTC merchant will release the coins, the criminals will then mention the coins to their anonymous wallet address, directly complete the fraudulent process.

This operation, compared to the operation mode in Figure 1, is simpler, more convenient and safer. It is also becoming increasingly popular with criminals, but the level of harm caused by this model to OTC merchants has gone up several notches. Why? Because the victim’s money directly to your account, you belong to the first level of the card, from the perspective of public security investigation of the case, the victim reported, the public security organs will be the first time will check the bank flow, the results in the process of checking the flow, found that the stolen money directly into your bank account, and you because of OTC brick moving arbitrage, resulting in the rapid flow of stolen money, and your bank account flow is huge, in such a Under such circumstances, if the public security officer handling the case does not know much about digital currency trading or subjectively believes that digital currency trading is illegal, then the OTC merchant will face not only the risk of freezing the card, but direct personal risk.

From our recent cases involving the crimes of concealing the proceeds of crime, concealing the proceeds of crime and helping information network criminal activities in the cryptocurrency world, we can see that a large portion of OTC merchants have been criminally detained and convicted and sentenced for playing an instrumental role in the predicate crime because of that tactic of the fraudsters. Although some cases were successfully bailed out or dismissed after our team lawyers intervened and restored the whole transaction process to the public prosecutor, there are many other cases where the parties were found to be involved in the case and needed to bear huge criminal liability because of our late intervention or the different judgment standards of the public prosecutor for knowingly determining the above two crimes.

Second, how to avoid the risk?

At this stage, our country does not explicitly prohibit digital currency trading, but also does not liberalize it, especially with the recent issuance of several documents, reflecting the trend of the country moving from weak regulation to strong regulation of digital currency trading. In such a context, OTC merchants conducting transactions also face great uncertainty, especially in the process of receiving stolen money, not only facing the problem of frozen cards, but also greater criminal risk. Therefore, I remind all OTC merchants, buying and selling transactions need to be careful, the funds review can not be loose, once frozen timely processing, such as the need to hire a professional lawyer, do not be greedy for small profits, or delay the best time to appeal.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-28 12:29
Next 2021-05-28 16:03

Related articles