TechFlow news: On January 22, the legal team of Xiao Sa released a report indicating that the use of encrypted communication tools such as Telegram could become key evidence in establishing "knowledge" for currency traders. Currently, the crimes of concealing criminal proceeds (punishable by up to seven years in prison) and aiding information network criminal activities (punishable by up to three years in prison) have become the primary criminal risks facing cryptocurrency traders.
According to judicial interpretations from the Supreme People's Court, frequent use of anonymous internet access or encrypted communication tools may lead to a presumption of "knowledge." Applications cited include Telegram, BiYong, Reddit, and Discord. The report stresses that even if upstream criminal activity cannot be verified, traders may still face criminal liability for aiding information network criminal activities if transaction amounts exceed five times the statutory threshold.
Citing recent cases, the report highlights a case recently heard by a provincial court in Gansu, where a trading group used Telegram to establish over-the-counter trading groups, exchanging USDT for RMB at high exchange rates. The total amount involved exceeded 5.9 million yuan, with illegal profits reaching 880,000 yuan. In another case from Henan, a trader earned 11,700 yuan through transactions on the U-MATOU platform and was sentenced to eight months in prison for concealing criminal proceeds.
Experts warn that even without confirmed evidence of upstream crime, traders may still be prosecuted for aiding information network criminal activities if transaction volumes exceed five times the legal standard. The key distinction between the two offenses lies in the level of subjective awareness: concealment requires clear knowledge of the principal offender’s criminal acts, whereas aiding only requires recognition that criminal activity is possible.
