Criminal determination cannot rest solely on whether a handling fee was received
Taking the rules of mainland China as an example, the 2025 Opinions of the Supreme People's Court, the Supreme People's Procuratorate and the Ministry of Public Security require a comprehensive determination of knowledge, the act of assistance and serious circumstances in the crime of assisting information network criminal activities, taking into account the manner and number of instances of assistance, whether regulatory supervision was evaded, the profits obtained and the actor's experience, among other factors. Whether the conduct constitutes an accomplice to fraud, money laundering or another crime also requires satisfaction of the respective elements. No conclusion can be drawn on the basis of a single sum of funds involved in fraud, nor can "we do not know the specific victim" be treated as a self-evident ground for exemption from liability.
Beyond criminal liability, there are independent operational responsibilities
Even if the evidence is insufficient to establish a crime, a company may still be subject to regulatory action for failing to perform applicable anti-money-laundering, merchant management or customer protection obligations; whether it bears civil liability to victims depends separately on the governing law and causation. Whether the business itself is lawful must also be determined first. The restrictions in the 2026 mainland China notice on virtual currency risks do not disappear merely because the platform has conducted real-name verification or a merchant has submitted a business licence. Offshore establishment and licensing also cannot directly answer the legal character of conduct connected to mainland China.
Hypothetical scenarios: ordinary complaints differ from clear leads on fraud
Suppose a merchant occasionally has delivery disputes; the platform may first verify the order and refund. If multiple unrelated payers provide consistent evidence of fraud and the merchant then asks to transfer the balance immediately to an unfamiliar address, the nature of the risk has changed. The investigation should be escalated promptly and measures with a proper basis should be taken, rather than continuing to process transactions because the fee rate is higher. Conversely, a single unsupported complaint from a competitor should not automatically lead to the permanent confiscation of a merchant's funds.
Keep records that explain the decision-making process
At onboarding, understand the actual goods, delivery methods, refund rules and payment-collection relationships; during operations, place complaints, chargebacks, abnormal transfers and customer information on the same timeline. When the conditions for reporting or assisting an investigation are met, handle the matter in accordance with law and limit the scope of those with knowledge. After identifying suspicious points, do not destroy chat records, do not retroactively fabricate old review materials and do not privately instruct merchants to circumvent restrictions; whether to suspend, terminate or return funds should be checked concurrently with qualified personnel.
Merchant review should also guard against "shell switching of business". A merchant initially operates ordinary goods, but after onboarding provides its payment link for use on another website, while the entity information seen by the platform may remain unchanged throughout. As a routine monitoring recommendation, spot-check whether the merchant name in payment pages, order descriptions and customer complaints is consistent, and require customers to explain material business changes. Where inconsistencies arise, first preserve the facts and verify them; sales staff should not privately alter the industry classification to maintain the channel's approval rate.
Recommended actions
- Include merchant websites, contracts, delivery and refund records in onboarding and periodic review.
- Establish an escalation channel for fraud leads across customer service, risk management and settlement teams.
- Preserve the original review and communication evidence, and assess reporting, restrictions and exit separately under the applicable law.
This content is for general information only and does not constitute legal advice. Please consult a qualified lawyer about specific matters.
References
- Opinions on Issues Concerning the Handling of Criminal Cases Such as the Crime of Assisting Information Network Criminal Activities (Fa Fa [2025] No. 12) — Supreme People's Court, Supreme People's Procuratorate, Ministry of Public Security
- Notice on Further Preventing and Handling Risks Relating to Virtual Currency and Other Matters (Yin Fa [2026] No. 42) — People's Bank of China and seven other departments / Official website of the China Securities Regulatory Commission
