A must-read for cryptocurrency players: A detailed explanation of the entire process for unfreezing bank cards related to cryptocurrency

Author: Xiao Za Lawyer

During the process of handling various cases for cryptocurrency players, the Za Jie team has found that due to China's recent vigorous crackdown on online fraud, cross-border money laundering, and other crimes, measures such as the "Card Disconnection Operation" have led to many partners being "misaffected," often resulting in their bank cards being frozen during the flow and exchange of personal funds. Today, the Za Jie team will combine practical experience in handling the unfreezing of bank cards related to cryptocurrency to explain the entire process of unfreezing bank cards, helping everyone address such issues.

Complete Unfreezing Process

1. Inquiry about the Freezing Authority

When a bank card is frozen due to involvement in virtual currency transactions, the first step is usually to go to the bank where the account was opened to inquire which law enforcement agency took this measure. However, this inquiry process may not be smooth. The Za Jie team encountered a case where a user involved in cryptocurrency trading was immediately reported to the bank manager by bank staff upon mentioning his involvement in virtual currency transactions, and his inquiry request was denied.

In fact, customers have the right to request this information from the bank based on relevant legal provisions.

According to the regulations on freezing accounts jointly issued by the China Banking Regulatory Commission, the Supreme People's Procuratorate, the Ministry of Public Security, and the Ministry of State Security, Article 25 clearly states: Once the public security organ has completed the freezing procedures, the bank is obliged to inform the customer or deposit unit of the specific circumstances of the account freeze when they inquire. This regulation grants you, as the account holder, the right to understand and grasp the status of your account. Therefore, if you encounter uncooperative banks, you can use this to uphold your right to know.

2. Restore the Source of Initial Funds

Tracing and proving the source of funds used to purchase virtual currencies (such as USDT) is a key step in the process of unfreezing a bank card. This may include presenting proof of personal salary income or providing current employment status and related documents, such as a business license. These materials will help demonstrate that the income source for purchasing crypto assets is legitimate, thus facilitating the unfreezing application. The focus is on showing relevant authorities a clear and legal flow of funds to prove that the transaction is not based on illegal funds.

3. Provide Transaction Records

To prove that the purchase of virtual currencies (such as USDT) is legal and legitimate, we also need to provide complete transaction records and evidence. This may include transaction order records from exchanges or chat records with currency traders through social platforms like WeChat. Through these detailed transaction records, we can clearly trace and demonstrate your purchasing behavior, proving that these transactions were conducted according to normal market rules and processes, without any improper or illegal actions. In short, these records are key evidence to prove the legality of the transactions.

4. Prove the Source of Funds

In the case of a frozen bank card, it is crucial to demonstrate the legality of the source of funds and your good faith and lack of knowledge regarding the transactions. To this end, we need to provide a series of evidence to prove the legitimate source of the funds in the account. This includes:

• Orders for selling USDT (or other crypto assets): Provide records of personal transactions selling virtual currencies and withdrawing funds from exchanges.
• Communication records with merchants: Show chat records with exchanges or other merchants during transactions, reflecting the intent and process of the transaction.
• Evidence of offline transactions: If there are transactions conducted offline, relevant chat records and transaction proofs are also necessary.
• Bank and payment platform transaction records: Provide transaction records of the frozen bank card, as well as transaction records from related payment platforms like WeChat and Alipay. These records can serve as direct evidence of the flow of funds.

Based on the Za Jie team's experience, ensuring that these documents and records are detailed and accurate can help prove that your source of funds is legitimate during the unfreezing process, while indicating that you had no improper behavior or knowledge of participating in illegal activities during the transactions. Some freezing authorities may also require printed copies of these records, so it is wise to prepare these materials in advance.

5. Explain the Legality of Transactions

Based on experience, when dealing with bank card freezing matters, relevant authorities may question the motives for engaging in virtual currency transactions and ask whether individuals are aware of the relevant legal provisions. Regulatory agencies may point out that while there are currently no explicit legal provisions categorizing virtual currency transactions as illegal, such transactions carry risks and are often subject to legal protection disputes.

What to Do If Unfreezing Fails?

While the methods are good, they do not guarantee successful unfreezing. So what can we do if unfreezing is unsuccessful?

1. Appeal or File a Complaint

First, if there are objections to the freezing measures, believing that the freezing measures are improper or exceed the legal time limit, relief can be sought through an appeal or complaint. According to the "Regulations on the Procedures for Criminal Cases Handled by Public Security Organs," parties involved, defense lawyers, litigation agents, and interested parties have the right to appeal to the public security organ that made the freezing decision. During the appeal process, relevant proof materials must be submitted to demonstrate that the freezing measures are improper or unrelated to the case. The public security organ should make a decision within 30 days of receiving the appeal and provide a written response.

2. Appeal to Higher Public Security Organs or the Same-Level People's Procuratorate

In the case of a frozen bank card, if the party is dissatisfied with the handling decision of the freezing authority, they can appeal through legal channels to higher public security organs or the same-level people's procuratorate. According to Article 191 of the "Regulations on the Procedures for Criminal Cases Handled by Public Security Organs," you should submit detailed appeal materials, including personal identification information, documents related to the freezing decision, evidence proving the freezing measures are improper or unrelated to the case, and relevant legal basis. The public security organ or people's procuratorate is responsible for investigating and verifying the appeal materials within 30 days and providing a written response. If the higher public security organ finds that the lower-level organ has engaged in illegal behavior or improper handling, it should order them to correct it within a specified time. Importantly, you should adequately prepare relevant materials during the appeal process to ensure their completeness and accuracy, providing strong evidence support for the appeal.

3. Court Litigation

If the frozen funds have been wrongfully deducted or the freezing measures are clearly improper, and other relief avenues have not resolved the issue, you can seek help from the court by filing an administrative lawsuit. First, file an administrative lawsuit with the court, requesting the court to rule to revoke the improper freezing measures or return the wrongfully deducted funds; second, submit litigation materials and provide relevant evidence to prove the impropriety of the freezing measures or their irrelevance to the case; finally, wait for the court's hearing and judgment. According to Article 51 of the "Regulations on the Application of Seizure and Freezing Measures by Public Security Organs in Criminal Cases," parties and their defense lawyers, litigation agents, and interested parties have the right to appeal or file complaints against the improper behavior of public security organs and their investigators to ensure their legal rights are properly handled.

4. Lawyer Assistance

The above processes are often quite cumbersome and filled with complexities, so seeking professional legal support throughout is crucial. Therefore, if you encounter a situation where your bank card related to cryptocurrency is frozen, it is best to entrust an experienced lawyer to assist you in handling the unfreezing matters. A professional lawyer will conduct in-depth investigations, gather necessary evidence, and prove the impropriety of the freezing measures or their irrelevance to the case. Through professional coordination and communication with the freezing authority, the lawyer will strive to complete the unfreezing with minimal deductions or losses. The professional skills and experience of the lawyer play a key role in this process, helping you communicate more effectively with relevant departments and ensuring your legal rights are properly handled.

In Conclusion

The issue of bank cards being frozen in virtual currency transactions is becoming increasingly prominent, especially when transactions involve telecom fraud and other illegal activities. Therefore, it is essential to exercise extra caution before withdrawing funds, verifying the identity information and transaction history of the payer as much as possible to reduce the risk of receiving illicit funds.

That's all for today's sharing. Thank you, readers!