"In Guangdong, particularly in Shenzhen, some seemingly ordinary part-time jobs are mass-producing criminal suspects."This is a reminder recently posted on the Xiaohongshu platform by Attorney Deng Xiaoyu, Partner at Mankun Law Firm (Shenzhen). In the post, he pointed out that such part-time jobs, marketed under the names of"cash-for-crypto" and "offline crypto exchange errand-running,"have formed a highly proceduralized "predatory mechanism," with young people who have high educational qualifications but insufficient risk awareness often being the primary targets.
In these tasks,part-timers are typically required only to follow instructions to convert funds into Hong Kong dollars and then proceed to designated over-the-counter (OTC) cryptocurrency exchange shops to complete the transactions. What appears to be a simple "errand" inadvertently completes a critical link in money laundering offenses—"physical cross-border conveyance by individuals."Once the funds are determined to be proceeds of crime, participants may be directly exposed to criminal liability.
Attorney Deng Xiaoyu believes that in recent years, such "low-threshold, high-return" part-time models have been systematically exploited by criminals for money laundering activities. Many participants have already crossed the boundary of criminal law without realizing the nature of their conduct.
Based on the above assessment,Deng Xiaoyu (Partner at Mankun Law Firm, specializing in criminal matters involving crypto assets) and Huang Wenjing (Compliance Consultant at Mankun Law Firm) recently granted an interview to Shenzhen News Network.Drawing on real cases, they systematically dissected the relevant modus operandi, social harms, and legal risks, aiming to "cut through" this concealed and complex money laundering network to reveal the underlying legal truths to a broader audience.
Why does merely "helping to exchange currencies" raise suspicions of money laundering?
Shenzhen News Network Reporter:
Mr. Deng, in the cases you have handled recently, how do criminal gangs typicallyrecruit young people under the guise of "part-time jobs"?
Deng Xiaoyu:
We recently handled atypical case: auniversity student currently enrolled in mainland Chinaaccepted a "errand-running part-time job" posted on a second-hand goods trading platform,The counterparty required the individual to travel to Hong Kong and purchase a specified quantity of Tether (USDT) through local cryptocurrency over-the-counter (OTC) outlets, for subsequent transfer to designated blockchain addresses.
Specific Process: The part-time worker first receives RMB into their personal bank account, exchanges it for Hong Kong dollar cash at mainland fiat currency exchange points, then proceeds to designated Hong Kong OTC outlets to purchase USDT, with the outlet directly transferring the crypto assets to the specified wallet.
After purchasing USDT worth tens of thousands of RMB through the aforementioned method, the student'sbank card and WeChat Pay accounts were frozen by mainland law enforcement authorities, and they were informed that the funds received originated from transfers made by victims in an upstream fraud case.
Subsequently, we collaborated with professional on-chain technical teams to conduct analysis, confirming this to be atypical money laundering technique known as 'receiving fiat via bank cards and converting to USDT', which is linked to organized crime networks in Southeast Asia.
Since then, we have received numerous similar inquiries. Some participants have been subject to criminal investigations for offenses including fraud, concealing or disguising the proceeds of crime, and aiding information network criminal activities; others, although not criminally detained, have experienced prolonged freezing of their bank cards and payment accounts, causing significant disruption to their daily lives, studies, and work.
Shenzhen News Network Reporter:
Advisor Huang Wenjing, black-market criminal gangsWhy are Hong Kong crypto asset over-the-counter (OTC) storefronts frequently chosen as operational nodes?Is this model more difficult to trace?
Huang Wenjing:
From a practical perspective, there are three main reasons why Hong Kong OTC storefronts are easily exploited by criminal syndicates.
First, the regulatory boundaries are relatively ambiguous, and anti-money laundering requirements are not uniform.
Currently, Hong Kong has a relatively mature licensing and regulatory framework for centralized virtual asset trading platforms. However, crypto OTC storefronts remain in an area with relatively ambiguous regulatory boundaries, featuring diverse entity types and inconsistent compliance standards. Some storefronts have significant deficiencies in verifying the source of funds, transaction monitoring, and anomaly analysis, leaving room for illicit operations.
Second, cash transactions inherently constitute high-risk scenarios.
OTC storefronts primarily conduct cash transactions. Bearer cash lacks the account trails and structured data inherent in bank transfers, meaning investigations often rely more heavily on physical surveillance, witness testimony, and physical evidence, thereby making overall traceability significantly more difficult.
Third, frequent financial activities provide greater scope for concealment.
In the background context of its 2024 consultation on Virtual Asset OTC Trading Service Providers (VAOTC), the Hong Kong Government also noted that in certain fraud cases, OTC storefronts were used for the initial layering of involved funds. As an international financial center, Hong Kong features multi-currency circulation and active cross-border transactions, enabling criminal syndicates to more easily fabricate transaction backgrounds and conceal the true purpose of funds.
Dual Losses to Individuals and Society: Criminal Risks Concealed by a "Legitimate Narrative"
Shenzhen News Network Reporter:
Attorney Deng Xiaoyu, in the cases you have handled, many of the so-called“part-time workers” are young people with advanced educational backgrounds.Why are theyparticularly susceptible to falling into such traps?Once involved, what legal consequences might they face, and what long-term impacts could arise?
Deng Xiaoyu:
In my view, the reason such part-time opportunities can deceiveindividuals with advanced educational backgroundslies in the fact that the other party constructs anarrative scenario that appears coherent, reasonable, and lawful.。
When part-time workers raise questions, such as “Why must I personally go to Hong Kong to carry out the operations?”, the other party typically explains that virtual asset transactions are restricted in mainland China but are lawful and open in Hong Kong; since the principal is located elsewhere, traveling to Hong Kong specifically would incur high costs, whereas having nearby part-time workers act on their behalf is more “cost-effective and efficient.” Under this self-consistent line of reasoning, many students do not perceive any obvious irregularities at the level of rational judgment, thereby lowering their guard and developing trust.
However,Criminal risksoften exhibit significantlag effectsMany part-time workers only discover, two or three months after the incident, that their bank cards or payment application accounts have been frozen, or they suddenly receive calls from public security organs, or are even intercepted by customs during routine entry or exit procedures. Such sudden developments often cause severe panic among students who lack social experience, exerting a sustained impact on their psychological well-being and normal academic and daily life.
Reporter from Shenzhen News Network:
The general public may not be aware of how such part-time work, ifsuspected of involving money laundering, facilitates illicit underground industries.What impacts does it have on the financial regulatory order and the anti-money laundering framework?
Huang Wenjing:
Taking telecom and online fraud crimes, which have been a key focus of national crackdowns in recent years, as an example,"the act of defrauding victims of money" is merely the first step; the crux lies in how to rapidly transfer and conceal the flow of funds to make recovery difficult.
If the involved funds remained solely in the criminals' accounts, tracing and freezing them would not be difficult once victims reported the case to the police. However, through the methods involved in this case, the funds are quickly fragmented and circulated across a cross-financial system characterized by "multiple asset types, multiple channels, and multiple nodes," ultimately creating a vicious cycle of "faster fraud, faster transfers, and more difficult recovery."Such part-time work, in essence, provides key funding channel nodes for illicit and gray-market industries, directly facilitating the scaling and industrialization of upstream criminal activities.
From a broader perspective, money laundering transactions often exhibit characteristics of fragmentation, dispersion, and high frequency, significantly increasing compliance costs for regulatory authorities and financial institutions. If the proportion of such non-genuine and abnormal economic activity transactions continues to rise within a region's financial system, it will not only distort financial data but also pose hidden risks to overall financial security.
Once this risk draws attention from the international community, the region may be labeled a "high-risk jurisdiction." For example, certain countries and regions have been placed on the Financial Action Task Force (FATF) gray list due to inadequate anti-money laundering supervision, causing their citizens to face practical difficulties in cross-border financial activities, such as restricted account opening and hindered transactions, thereby inflicting long-term and profound negative impacts on national reputation and economic development.
Characterization and Consequences: The Logic for Identifying Money Laundering and the Boundaries of Sentencing
Shenzhen News Network Reporter:
Attorney Deng Xiaoyu,why did you post on social media platforms to specifically warn the public against such money laundering traps?From the perspective of criminal law and judicial interpretations, how are such acts typically characterized? Furthermore, how should one distinguish between "occasional personal transactions" and "business-oriented exchange activities"?
Deng Xiaoyu:
My posting on social media platforms was, on one hand, based on myduty to provide legal education as a member of the Committee on Defense of Common Types of Crimes under the Shenzhen Lawyers Association, and on the other hand, it was alsoIt is hoped that young people in society will be protected to the greatest extent possible.。
In the cases we have handled, manypart-time workers initially sought to supplement their income and alleviate their families’ financial burdens through their labor.Yet it is precisely this mindset, untainted by malicious intent,that is easily exploited by criminals, thereby drawing such individuals into specific stages of money-laundering activities.
From the perspective of judicial practice, the conduct of such part-time workers is more commonly assessed within the framework of money-laundering offenses.For individuals who merely carry out fund conversions or transfers in accordance with instructions, it is generally inappropriate to directly classify their conduct as the crime of “illegal business operations”; instead, the focus should be on whether they objectively participated in the transfer, concealment, or disguise of proceeds derived from unlawful activities.
As forthe distinction between “isolated personal transactions” and “business-oriented conversion activities”,the key factor lies not in whether remuneration was received, but inwhether the conduct exhibited continuity, organization, and outward-facing business characteristics.Ordinary part-time participants who do not solicit clients from the public or establish a stable pattern of transactions generally do not meet the constituent elements of the crime of illegal business operations; however, this does not mean that criminal risks are necessarily absent.
Shenzhen News Network reporter:
Advisor Huang Wenjing, if the amount involved reaches“particularly serious circumstances,” what criminal penalties may the relevant personnel face?What are the differences in accountability between unit crimes and individual crimes?
Huang Wenjing:
Taking the crime of money laundering as an example, pursuant to the Criminal Law of the People’s Republic of China and the Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Money Laundering,once the conduct is determined to constitute “serious circumstances,” sentencing will typically fall directly within the second tier, namely fixed-term imprisonment of not less than five years but not more than ten years, plus a fine.
It should be emphasized that, in judicial practice, the amount involved is only one of the thresholds for establishing criminal liability and determining sentencing.Whether the conduct constitutes “serious circumstances” requires a comprehensive assessment based on behavioral and consequential factors, such as repeated commission, causing significant losses, or refusing to cooperate in the recovery of illicit proceeds; conclusions cannot be drawn solely on the basis of the monetary amount.
Furthermore, the crime of money laundering is subject to a “dual penalty system.”This means that if the conduct is carried out in the name of a unit, the unit itself will be sentenced to pay a fine; meanwhile, the persons directly in charge and other directly responsible personnel will not be exempt from liability merely because the conduct was attributed to the unit, and they must still bear individual criminal responsibility in accordance with the standards for the crime of money laundering. Where the circumstances warrant heavier punishment, they may likewise face fixed-term imprisonment of not less than five years but not more than ten years, plus a fine.
Risk Alert: How to Avoid Becoming a “Money Laundering Front”
Shenzhen News Network Reporter:
How can the public identify money laundering risks in part-time work?What self-protection measures should be taken upon encountering suspicious transactions?
Huang Wenjing:
In fact, identifying such risks hinges on one core judgment:
Any part-time work that requires you to assist with fund transactions or account operations essentially turns you into a conduit for funds; 99% of such arrangements are either fraud or money laundering.
In practice, common “red flags” include:
- Requests for you to provide or open new bank cards or corporate accounts;
- Lending out your WeChat or Alipay payment codes to receive and make payments on behalf of others, followed by immediate transfer of the funds;
- Requirements to withdraw cash in person, or to exchange cash for virtual assets at exchange shops and then transfer them to designated addresses;
- Repeated emphasis that “cash trading of virtual assets in Hong Kong is legal,” “physical stores are operating, so it cannot be illegal,” or “it is just helping with an errand.”
The common thread in these talking points is the deliberate diversion of attention.The real risk lies not in whether a specific operation is formally lawful, but in itspurpose of concealing the true source and flow of funds.。
Once the funds originate from upstream crimes such as telecom fraud or gambling, your account and identity may be regarded as part of the criminal chain. In less serious cases, your account may be frozen and subject to investigation; in more serious cases, you may face criminal liability due to the severity of the circumstances.
Shenzhen News Network reporter:
Attorney Deng Xiaoyu,what more targeted reminders do you have for young people?Should they be wary of seemingly lawful temptations such as “exchange-rate arbitrage”?
Deng Xiaoyu:
I would like to offer young people one particular reminder:
Any part-time work that treats you as a “fund conduit” should be rejected outright, no matter how “lawful and compliant” it is portrayed to be.
Many people believe that money laundering is far removed from their lives, but in reality it is often disguised under professional-sounding, even plausible, labels such as “errand-running and agency services,” “cross-border settlement,” “spread or exchange-rate arbitrage,” and “buying and reselling crypto assets.”In essence, such arrangements require you to use your real-name identity to facilitate the transfer of funds from unknown sources.
In the cases we have handled,what the counterparty truly seeks is not the part-time worker’s “labor,” but rather their real-name account and the transaction trails generated through its operation, which are used to disguise the proceeds of crime.Once the upstream funds are traced, the original “part-time worker” may instantly become a “person involved in the case.” The most immediate consequences include account freezing and restrictions on daily life; in serious circumstances, corresponding legal liability may also arise.
Mankun Law Firm reminds you: Be vigilant against these high-risk warning signs
Based on interview content and practical experience, we specifically highlight the following:
- Part-time work involvingcollection and payment on behalf of others, cash handovers, account operations, or crypto asset exchangesshould be approached with heightened vigilance;
- Compensation that is clearly disproportionate to the work performed is often not a “good opportunity”;
- Deliberate avoidance by the counterparty regarding the source of funds is a significant risk indicator;
- Once doubts arise,The earlier you consult with qualified legal counsel, the more likely you are to avoid serious consequences.。
We will continue to engage in discussions on public issues from aprofessional perspective, and we hopeto help the public better understand legal boundaries and stay away from potential criminal risks through real cases and legal analysis.
About Mankun
Mankun Law Firm was established in 2015 as a boutique law firm in China specializing in the Web3 new economy and deeply rooted in the blockchain industry. The members of the Mankun team possess unique and diverse industry backgrounds, hailing from renowned legal service institutions, state judicial organs, internet technology companies, crypto asset institutions, and blockchain industry think tanks.
Leveraging our profound understanding of the new economy, continuous attention to and research on policies and regulations, and extensive practical experience, the Mankun team excels at providing comprehensive legal services to enterprises in the new economy sectors—including Web3, blockchain, AI, NFTs, digital collectibles, crypto funds, crypto payments, DeFi, real-world assets (RWA), and GameFi—from the perspectives of business models and legal practice. These services include business structure design, project financing and investment, transaction planning, operational compliance, resolution of complex civil and commercial disputes, prevention and control of criminal risks, and criminal defense.
Headquartered in Shanghai, Mankun Law Firm has branch offices in Hong Kong (China), Silicon Valley (United States), Shenzhen, Hangzhou, Zhengzhou, Chengdu, and other locations. To meet the global compliance development needs of Web3 industry clients, Mankun has established local offices in major global crypto-financial cities and selected professional local blockchain service partners, providing clients with professional legal and compliance services that combine global breadth with deep expertise in China.
