Cryptocurrency card freezing trend (3): Why are many Bitcoin miners’ bank cards frozen?

The text is as follows:

The recent "freezing of credit cards" in the cryptocurrency circle has caused panic among the public. Wu said that the blockchain found that in addition to OTC traders, Bitcoin miners have become the main group whose credit cards have been frozen.

A miner from Sichuan told Wu Shuo Blockchain that his ICBC card was suddenly frozen on the 4th. After checking with the bank, he found that it was frozen by the Dongguan Fourth Brigade. He then contacted the other party through the phone number provided by Wu Shuo Blockchain. The other party was a district or county branch arranged by the Dongguan Municipal Bureau. The attitude was good and said that the Municipal Bureau was strictly investigating a major telecommunications fraud case. In a few days, a staff member would take the initiative to contact him and the card could be unfrozen if he provided information to prove that it had nothing to do with black money.

In fact, many miners and OTC traders told Wu Blockchain that many miners’ bank cards were frozen. In this wave of freezing cards, many miners’ bank cards were frozen. What is the reason?

First, the core reason is that miners need to sell cryptocurrencies to exchange for legal tender to pay electricity bills, so there is a natural need to exchange for legal tender. And exchanging cryptocurrencies for legal tender is the easiest way to receive "black money". The most common reason for freezing cards is receiving stolen money.

Second, miners have been in the industry for a long time, and most of them are familiar with OTC channels. It is said that this time it was a problem with an OTC trader, and then spread to the surrounding areas, so it may involve some OTCs specializing in mining business.

In comparison, the OTC transactions of mainstream platforms are not as scary as rumored. Mainstream platforms have close cooperation with the police and will even take the initiative to intercept some black money and ban merchants to prevent the spread of black money and cause greater impact.

For example, Huobi started developing an astrology system in 2018. Huobi said that the "Technology Assistance Channel" it launched has helped public security, procuratorial and judicial departments in many places such as Putian, Fujian and Changsha, Hunan to carry out blockchain anti-fraud and anti-money laundering work.

Wu said that blockchain believes that mainstream trading platforms need to work more closely with regulators to effectively control the influx of black money into the cryptocurrency market. On the contrary, the risk of offline OTCs lacking regulation is increasing, as evidenced by the card freezing incident.

OTC traders told Wu Blockchain that this wave of crackdowns takes a long time to trace back, and some trading accounts have not traded for months, but they are still frozen, resulting in a large number of people being implicated. Currently, there is a lot of evidence pointing to a certain OTC trading team in the industry, because merchants associated with it have been frozen one after another.

Previously, Wu Blockchain exclusively disclosed that a large number of people in the cryptocurrency circle had their bank cards frozen on the 4th and 5th; the core reason for the freezing of the cards was that telecommunications fraud and Ponzi schemes were recently under strict investigation by the police, especially the actions of Dongguan JC, which led to a large number of bank cards being frozen. The over-the-counter USDT trading area was a disaster area where funds involved in telecommunications fraud were used for money laundering.

In addition, Wu Blockchain found that many miners and coin holders lack basic common sense to avoid card freezing, and suggested reading the detailed suggestions of two lawyers and Mr. Sun Xiaoxiao in "Restoring the ins and outs of the "card freezing wave" in June: Dongguan froze thousands of cards and the coin circle was panicked".