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How Can You Become a Victim of Fraud?
In P2P trading on platforms like Binance, the system connects you to another user. You agree to sell cryptocurrency, such as USDT. The other party sends you money to your bank account, and you send it crypto. Problems arise when a scammer interferes in the transaction. The fraudster exploits your trust and may redirect the payment through an unsuspecting third party, such as a naive individual. This person sends you money for what they believe is an “investment”, but in reality, they are unknowingly financing the purchase of cryptocurrency for the scammer. As a result, you receive money from the scammer indirectly, not from your intended trading partner. You then transfer the cryptocurrency to the scammer, who disappears immediately. At this point, you have unknowingly become an intermediary in a criminal activity, even though you had no idea.
Blocked Accounts and Criminal Investigations
Once the scammer reports the fraud to the police, your transaction will be investigated. One of the first actions is often freezing/blocking your bank account. The reason is simple: banks and authorities see that you received money from a defrauded party. Banks are quick to react to suspicious transactions to avoid being implicated in money laundering. Your funds will be frozen, leaving you in a legal limbo. On one hand, you have lost the cryptocurrency you sent to the scammer; on the other hand, you cannot access the money you received. A lengthy investigation and proof of your innocence will follow.
Why Does This Happen? AML in Practice
The main reason is AML (Anti-Money Laundering) – the fight against money laundering. Banks and financial institutions are legally required to verify the origin of funds. In P2P trading, you effectively act as a currency exchange, so the same rules apply to you.
In Practice, This Means:
- Obligation to Verify Funds: You need to know where the money comes from and whether it was obtained legally. As an individual, you usually have no way to verify this.
- Reporting Suspicious Transactions: Banks are required to report any transactions they consider suspicious.
Engaging in such transactions can expose you to legal liability for breaching AML obligations, which may result in heavy fines.
How to Protect Yourself?
- Avoid Using Personal Bank Accounts: Never use a personal bank account for P2P crypto trading. Banks consider this a violation of account terms.
- Use Specialized Platforms: For P2P trading, use applications specifically designed for it. For example, the Czech platform Vexl by SatoshiLabs, allows secure crypto trading without involving banks unnecessarily. This reduces risks related to banking systems and unclear AML compliance.
- Act Quickly if Problems Arise: If your account has already been blocked, contact a legal advisor specializing in crypto immediately. Prompt, professional action can minimize losses and protect you from further legal issues.
The main rule is: Don't turn yourself into a currency exchange. Protect yourself and think twice before chasing a “quick profit” that could end up costing you much more than you expect.