Many people involved in cryptocurrency trading face a potential issue: how to respond if law enforcement agencies get involved in an investigation? Instead of scrambling at the last minute, it's better to understand a few key "nodes" in advance.

First, it’s important to recognize a basic fact. Regulators often emphasize that "digital assets are not protected by law." But this does not mean that your trading activities are inherently illegal. The true meaning of this statement is: if you have a dispute with your trading counterpart, such as being scammed or suffering a loss, law enforcement agencies cannot help you recover funds in the same way they do with traditional financial assets. Therefore, the key is—proactively avoiding risks and ensuring the legitimacy of your funds, which is more practical than seeking legal remedies after the fact.

Next is the logic regarding the handling of "involved funds." If your account is frozen, a common question is why the suspected illegal gains haven't been immediately returned. This is not a matter of negotiation but a procedural issue. In such cases, you have several options: proactively communicate with the trading counterpart, or even directly contact the victims of the funds. After reaching an agreement through negotiation, the frozen funds may be unfrozen. Confrontation usually does not lead to good results.

The third often-overlooked point involves "criminal records" and "collateral impact." Generally speaking, if you can provide complete proof materials, confirm that the funds are indeed clean, and cooperate with authorities, you usually won't have a criminal record or affect the use of other bank cards. But there is a key layered distinction:

If you are classified as a first-tier involved card, the consequences are most severe—you may be restricted by both banks and public security systems, and multiple cards under your name could be affected. Second-tier involved cards are relatively milder, mainly freezing the usage rights of a single card.

The final and most practical advice is: engaging in cryptocurrency transactions is essentially operating in a gray area. Never treat it like online shopping. Regardless of the amount, you must do your homework on the source of funds and the background of your trading partners. Especially remember—funds with unknown origins, no matter how tempting, should not be touched. Small gains often mark the beginning of big traps.