After having over one million RMB frozen in their bank account due to selling USDT, the account holder’s repeated appeals yielded no results. Upon intervention by Mankun lawyers, the account was successfully unfrozen.
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For individuals in the crypto community, selling held USDT (Tether) is a very common occurrence. However, during the process of buying and selling USDT (Tether), due to fund transfers, the seller’s bank account may sometimes enter an “unusual” status—restricted usage, commonly referred to as freezing.
The case we wish to share today involves a member of the crypto community who sold USDT (Tether). After receiving the consideration payment from the counterparty, over one million RMB in their bank account was frozen. The account was only unfrozen after numerous twists and turns.
In June of this year, Ms. Huang suddenly discovered that 1 million RMB in her bank account had been entirely frozen and was inaccessible. After several inquiries, she learned that the freezing authority was Public Security Bureau A. Concerned, Ms. Huang promptly called Public Security Bureau A to inquire about the status of her frozen account. She learned that the amount involved primarily consisted of funds received from two USDT sales. These funds were transferred by the victim, passed through two intermediate layers, and finally deposited into Ms. Huang’s account. The public security authorities have currently identified these funds as illicit proceeds.
Although the amount involved constituted only one-tenth of the total balance, the entire 1 million RMB in the bank account was frozen. Given that this is not a insignificant sum, Ms. Huang was extremely anxious. She attempted to communicate with Public Security Bureau A multiple times and even drafted and submitted a statement of circumstances on her own. However, Public Security Bureau A informed Ms. Huang that her account could not be unfrozen at present and that there was no estimated timeline for unfreezing.
At her wit’s end, Ms. Huang learned about our law firm through a friend and sought assistance from Mankun lawyers.
Lawyer Intervention
Mankun lawyers communicated with Ms. Huang multiple times. Based on the actual circumstances of her USDT sales process, we provided her with a checklist of required materials. Subsequently, we studied and discussed the case in conjunction with the case details and supporting evidence, drafting a preliminary plan for unfreezing services. After Ms. Huang confirmed the engagement, we immediately initiated the first communication with the public security authorities to confirm basic information, understand the progress of the case, and schedule an in-person meeting.
Mankun lawyers then met in person with Public Security Bureau A for more detailed discussions. At that time, the authorities maintained a relatively firm stance, did not readily alleviate their suspicions regarding Ms. Huang, and held rather arbitrary views on virtual assets. After making certain adjustments based on the communication outcomes, and adhering to a problem-solving approach, the lawyers engaged in further telephone communication with Public Security Bureau A. We maintained a sincere attitude, expressed our intention to appeal, and provided comprehensive legal theoretical and practical analyses. The attitude of the public security authorities began to soften. After the second in-person meeting, significant progress was made in the unfreezing process, and Public Security Bureau A agreed to engage in further discussions with Ms. Huang regarding the unfreezing of her account.
Subsequently, Ms. Huang and Public Security Bureau A determined the steps and details for unfreezing the bank account. Ms. Huang also provided a recorded statement under the accompaniment of her lawyer. Ultimately, the public security authorities agreed to unfreeze the account, and one week later, Ms. Huang’s frozen bank account was successfully unfrozen.
Resolution Strategy
The successful unfreezing of Ms. Huang’s bank account relied on a correct unfreezing strategy, sufficient professional knowledge, and effective communication skills.
First, we expressed to the public security authorities our stance on appealing and seeking the unfreezing of the frozen bank account.
Second, we clearly distinguished between funds involved in the case and those not involved, providing corresponding viewpoints and reasoning.
Next, regarding different portions of the frozen funds, we provided distinct evidentiary materials and legal bases, combined with detailed and thorough interpretations of relevant policies and case circumstances.
Finally, we actively cooperated with the work of the public security authorities.
Therefore, throughout the entire process, although we encountered numerous obstacles during the unfreezing procedure, we ultimately achieved Ms. Huang’s initial objective, thereby validating the lawyers’ preliminary assessments.
It is important to note that in this case, because Ms. Huang’s bank account was unfrozen in a timely manner, her account was not subject to supervision or restrictions by any other institutions or departments besides Public Security Bureau A. After Public Security Bureau A lifted the freeze, her bank account quickly resumed normal usage.
Legal Tips
Upon learning that a bank account has been frozen, account holders should not panic. Based on today’s unfreezing case, Mankun lawyers offer several recommendations for applying to unfreeze bank accounts.
Step 1: Self-Examination. The account holder needs to recall the transaction records of the recently frozen bank account and reflect on whether there were any improper or suspicious transactions. If necessary, bank transaction statements can be retrieved for item-by-item verification to conduct a comprehensive “check-up” of the inflows and outflows of funds in the frozen account.
Step 2: Contact the Bank.If the account holder wishes to obtain specific details regarding the freezing of their bank account, the first point of contact should be the bank where the account was opened. Inquire with the opening branch for the full name, contact information, and other relevant details of the authority that froze the account. The account holder may initially inquire by phone; if necessary, they can visit the opening branch in person for further inquiry. If the restriction is merely imposed by the bank’s system, providing the corresponding materials and explanations as required by the bank will suffice. If the bank account has been frozen by public security authorities, proceed to the next step.
Step 3: Contact Public Security Authorities.Based on the freezing information provided by the bank, contact the freezing authority to obtain detailed information regarding the reason for the freeze, the amount involved, specific transaction flows, the duration of the freeze, and the conditions for unfreezing.
After completing the above three steps, you can then consider how to apply for unfreezing based on the specific freezing circumstances.If the account holder is unable to unfreeze the account themselves or lacks sufficient time and energy, they may, like Ms. Huang, engage professional lawyers to assist or act on their behalf.
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