Imagine this scenario: after trading digital assets successfully, you accumulate a significant profit of 10 million units. Now, you’re ready to liquidate these funds into RMB on an exchange. You navigate through numerous U merchant listings and select one that appears trustworthy for processing your transaction.
The U merchant then makes the transfer using Alipay, WeChat Pay, or a direct bank deposit. You confirm receipt of the payment, signaling the completion of the transaction, while 1 million USDT sits temporarily secured by the exchange acting as an escrow. Only after verifying the payment do you release the USDT to the merchant. It sounds secure and seamless, right? But there’s a hidden risk lurking beneath this process…
What if the 1 million RMB you receive is tainted with “black funds”?
This step in the cash-out process is unavoidable, but how do you ensure the merchant's funds are legitimate? Whether it’s assurances of card freeze compensation, reliance on the reputation of experienced U merchants, or other safety guarantees—it’s often not enough. The unsettling reality is that card freezes are considered “low-probability but severe” events that can unfold unexpectedly. The timing of a freeze depends entirely on when the original victim reports the issue.
One example stands out: a colleague had their card frozen two years after the transaction was completed. By that point, searching for the initial transaction records was futile, as the exchange itself had already ceased operations, leaving them with no means of verification.
The reasons behind such freezes are rooted in these realities:
1. Uncertainty About Fund Origins: You can't always know if the merchant’s transfer funds are clean or associated with suspicious activities.
2. Delayed Repercussions: Even if a transfer appears legitimate at the moment, previous questionable transactions tied to the merchant can lead to a freeze months later.
3. Big Data Risk Control Alerts: Frequent and large inflows and outflows on a merchant’s account can trigger bank monitoring systems. Transactions with such accounts put your card at risk of being flagged by big data for potential fraud.
4. Inconsistent Account Activity: If your bank card shows frequent, high-value transactions that deviate from your usual financial patterns—especially rapid, high-volume transfers without retention—it can trigger the bank’s risk management protocols.
While on-chain technology might provide some insights, that’s a topic for another day. This isn’t about tracking deposits and withdrawals visible to others, but about your domestic bank card being scrutinized by anti-fraud big data centers.
The logic is straightforward: frequent traders who deal with USDT often engage in continuous transactions on various exchange platforms. This activity can link their bank cards to others that have been flagged in anti-fraud databases, triggering oversight from big data surveillance. Most U merchants' bank accounts are inherently risky. Regular interaction with these accounts can put your card under suspicion, marking it as potentially fraudulent within the data monitoring systems.
Understanding these risks is essential for any trader navigating large-scale transactions. Stay informed and cautious to safeguard your assets against unforeseen freezes and compliance issues.
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