I received a call from an unknown number at noon: “Hello, this is the Hangzhou Public Security Bureau…” The person immediately asked about virtual currency transactions.

To be honest, even after trading for several years, hearing this kind of call still makes my heart skip a beat. But it’s especially important not to panic in situations like this—if you get flustered, you’re more likely to say the wrong thing and turn a simple issue into a complicated one. Here are a few key strategies for handling such situations that can help you keep your composure if this ever happens to you.

**Make Your Position Clear**

If they ask whether trading is legal, you need to be clear: buying and selling digital assets between individuals is not illegal; it’s a normal civil activity. But you should also state clearly—“I never participate in any money laundering or illegal activities.”

The key is to let the police know: you’re just an ordinary investor, trading through legitimate channels or with other individuals, with absolutely no connection to criminal activities.

**If They Ask for a Refund, Don’t Be Confrontational**

If you’re told “the money you received is problematic and needs to be returned,” don’t react emotionally or try to fight back. You can say: “I’m willing to cooperate with the investigation and clarify the situation. Here are my transaction records for your review.”

Proactively provide complete transaction records and chat screenshots as evidence. High cooperation usually leads to a quick resolution and can prevent other accounts from being implicated. Trying to tough it out will only turn a small issue into a big one.

**Understand the Two Different Scenarios**

There’s an important distinction you need to know:

If you’re found to be involved in criminal activity, all related accounts may be frozen;
But if you only unknowingly received problematic funds during a normal transaction, usually only the account that directly received the funds will be frozen.

The most important thing is: actively cooperating with the investigation won’t leave you with a criminal record, but refusing to cooperate could lead to escalated consequences.

**Advice for All Traders**

Digital asset trading is different from regular investments—every transfer carries potential risks. Make sure to follow the “three checks”:

Check the counterparty—confirm the identity of the person you’re trading with; prioritize users with verified real names;
Check the funds—pay attention to where the money is coming from and be alert to suspicious transactions;
Check the address—ensure the wallet address is safe and reliable.

In this space, steady progress is always more important than chasing quick profits. Protect your assets and don’t get caught up in unnecessary trouble.