Having been involved in the crypto space for five or six years, I’ve seen too many people fall at the legal hurdle. Some initially just wanted to profit from arbitrage with USDT, but ended up in trouble and still complain afterward. Honestly, it’s mainly because they didn’t understand what they shouldn’t get involved in. Today, I’ll clarify some of the most painful points.

**1. Concealment Crime — Starting from 7 years**

Many people don’t understand this point. If you know that the other party’s funds come from fraud, gambling, or other crimes, and you help transfer them using USDT, this is called "concealing, disguising criminal proceeds." It sounds like being an accomplice, and that’s exactly what it is.

Real case: Four people in Guiyang helped an online operation transfer over 130,000 yuan of telecom fraud funds via USDT. Each was sentenced to between 1 year and 1 year and 4 months. Some might think, “Only 130,000 yuan, what’s the big deal?” But judicial interpretations have long clarified that virtual currency transactions are considered a method of money laundering. If the case is deemed "seriously circumstances" — usually when the transaction volume exceeds 100,000 yuan — the sentence can increase to over 3 years. So don’t take chances.

**2. Illegal Business Operation — Large transaction volume means trouble**

Some confidently say, “I just run a second-hand U business, I definitely don’t touch dirty money.” That mindset is too naive. Large-scale buying and selling of USDT essentially amounts to illegal currency exchange, directly opposing national foreign exchange controls.

Last year’s case in Shanghai involved a cross-border exchange ring with 6.5 billion yuan, using shell companies to collect RMB, paying foreign exchange abroad, and using virtual currency as an intermediary, earning hefty fees. If such operations are classified as "illegal business operation," a transaction volume exceeding one million yuan typically results in a sentence of up to 5 years. The person who handled 14 billion yuan in transactions in Chongqing was sentenced to at least 5 years.

**Key Point**

Ultimately, virtual currency transactions have no gray areas in the face of regulation. Small amounts might go unnoticed, but once the scale grows large, regulatory authorities will inevitably intervene. Many of those high-volume USDT traders from previous years are now in court. Instead of gambling on luck, it’s better to recognize the situation early.