Recently, a special seminar titled “Practical Analysis of Cases Involving Virtual Currencies and the Crime of Concealing or Disguising Proceeds of Crime” was held via live online stream. The event was organized by the King&Capital Criminal Law Professional Committee and hosted by the Cybercrime Research Working Group. As a specialized research working group under the King&Capital Criminal Law Professional Committee, the Cybercrime Research Working Group was responsible for organizing and hosting this event.
This seminar focused on the boundaries of application and defense strategies for the crime of concealing or disguising the proceeds of crime in virtual currency transaction scenarios. In August 2025, the “Two Highs” issued the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases Involving the Concealment or Disguise of Proceeds of Crime and Profits Derived Therefrom” (Judicial Interpretation [2025] No. 13), which redefined the benchmarks for the application of this offense. Addressing issues such as regulatory updates during the transition between the old and new interpretations, the determination of subjective knowledge, the distinction between criminal charges, evidence review, and defense strategies, attorneys Wang Siyu and Xu Wei delivered keynote presentations, while consultant Cong Zhuoyi and attorney Wang Xintong participated in the discussion as panelists.
Remarks by Attorney Wang Siyu
Speaker Profile: Attorney Wang Siyu is an attorney at Beijing King&Capital Law Firm, a member of the Criminal Law Research Association of the China Law Society, Secretary of the King&Capital Research Center for Defense Against Fraud-Related Crimes, and a researcher at the King&Capital Research Center for Defense Against Official Misconduct. He has long served as a legal assistant to Mr. Tian Wenchang, Honorary Director of King&Capital Law Firm, and has participated in handling numerous major and complex criminal cases.
Attorney Wang Siyu noted that from 2020 to 2024, procuratorial organs nationwide prosecuted 230,200 cases involving the concealment or concealment of proceeds of crime, making this offense the most prevalent type of money laundering crime in terms of case volume. In August 2025, the “Two Highs” (the Supreme People’s Court and the Supreme People’s Procuratorate) issued a new judicial interpretation to define the boundaries of its application. Drawing on the new judicial interpretation and practical cases such as the Xiao Mou case, Attorney Wang Siyu analyzed the four manifestations of the “catch-all” nature of the crime of concealing or hiding proceeds of crime in virtual currency cases and their institutional roots. He proposed defense strategies from five dimensions—presumption of knowledge, timing, criminal charge evaluation, disposal procedures, and penetrative analysis—to discuss the expansion and realignment of this criminal charge.
Speaker: Attorney Xu Wei
Speaker Profile: Attorney Xu Wei is a partner at Beijing King&Capital Law Firm, head of the Cybercrime Research Group under the King&Capital Criminal Law Committee, a member of the Beijing Lawyers Association Think Tank, a lawyer on the Supreme People’s Procuratorate’s Criminal Appeal Lawyer Roster, and an expert in the Legal Daily Expert Database. He is the author of *Case Studies on Cybercrime*.
Using a case involving a Teda Coin trader—which spanned four years, involved three provinces, saw jurisdiction transferred three times, and was ultimately dismissed on the grounds that “no criminal facts were established”—Attorney Xu Wei outlined the procedural and substantive issues in cases involving the concealment of virtual currency: the crime of concealment is an independent offense; in the absence of conspiracy, jurisdiction should be determined separately from the upstream crime; “The facts of the upstream crime having been verified as true” is a prerequisite for applying Article 10 of the new interpretation, not a conclusion; obstacles to on-chain evidence collection cannot be transformed into an adverse presumption. Purchasing coins at a low price does not equate to a price significantly deviating from the market rate; account transaction records do not equate to the amount of the crime or illicit gains; and on-chain traces do not obstruct judicial investigation. He also explained the distinction between the crime of concealment and the crime of aiding and abetting money laundering based on the standard of “knowing the nature of the funds.”
Commentary by Counselor Cong Zhuoyi
Biography of the Commentator: Cong Zhuoyi, Counselor at Beijing King&Capital Law Firm, holds a Master of Laws (LL.M.). He is a former senior criminal judge and trial expert at a Beijing Intermediate People’s Court, with nearly 16 years of experience in criminal trial work.
Advisor Cong Zhuoyi pointed out that although virtual currency transactions may conceal certain crimes such as money laundering and concealment of criminal proceeds associated with organized crime and gray-market activities, and although domestic virtual currency transactions are not recognized under administrative regulations, this does not mean that all domestic virtual currency transactions should be automatically classified as crimes involving money laundering or concealment. Whether funds are “known to be criminal proceeds and the profits derived therefrom” must be determined comprehensively by examining whether there are obvious anomalies in the transaction behavior, transaction methods, and fund accounts. In terms of substantive law, attorneys must be familiar with common methods of virtual currency trading and accurately distinguish between common criminal charges related to virtual currency transactions—such as concealing or disguising the proceeds of crime, money laundering, illegal business operations, and aiding and abetting cybercrimes. Procedurally, they must understand the rules governing the collection of electronic evidence, including blockchain evidence, to ensure precise and effective defense in such cases.
Discussion with Attorney Wang Xintong
Speaker Profile: Attorney Wang Xintong is a senior partner at Beijing King&Capital Law Firm. She holds a Juris Doctor (JD) in Criminal Law from China University of Political Science and Law. She serves as a specially appointed expert attorney and hearing officer in the Supreme People’s Procuratorate’s “Expert Consultation Pool for Prosecution and Appeals,” and is recognized as a “High-Level Talent in Foreign-Related Legal Affairs” by the Ministry of Justice. She is the author of *Persuading the Court: An Advanced Guide for Litigation Masters*, and an insider trading case she represented was selected as a model case by the Supreme People’s Procuratorate.
Attorney Wang Xintong highly commended the practical significance of this thematic presentation, noting that the content systematically summarized and distilled common defense strategies for cases involving virtual currency and money laundering-related cybercrimes, thereby facilitating professional exchange among peers. Drawing on her practical experience handling foreign-related virtual currency cases, she analyzed the technical challenges of on-chain transaction path analysis and practical solutions. She also noted that technological advancements will continue to create new opportunities and challenges for defense strategies, while legal frameworks related to money laundering will be continuously refined and remain closely linked to international anti-money laundering compliance requirements; defense attorneys should fully balance policy and legal considerations to enhance the accuracy of case analysis.
This sharing session was a thematic seminar organized by the Cybercrime Research Specialized Group to address cutting-edge issues related to virtual currency crimes. The four speakers engaged in an in-depth discussion on the expanded application and proper classification of the crime of concealing or disguising the proceeds of crime in the context of virtual currencies, covering topics ranging from regulatory updates, procedural disputes, and substantive determinations to defense strategies. The Cybercrime Research Expert Group will continue to monitor judicial developments regarding new forms of cybercrime, transform case-specific experiences into reusable defense methodologies, clearly articulate technical facts, and firmly uphold the boundaries of criminal charges, thereby providing observable and verifiable practical models for handling similar cases.
Translated with DeepL.com (free version)
