The truth behind the "Hangzhou investigation" incident in the encryption industry has come to light.

Recently, there has been new progress regarding the "Hangzhou investigation" incident circulating in the encryption industry. After multiple verifications, including confirmations from relevant judicial authorities in Hangzhou and information obtained from other channels, it can now be confirmed that the claim of the Hangzhou police conducting systematic investigations on encryption practitioners is false.

Event Review and Truth Exploration

On June 10, someone posted an article on social media about the Hangzhou police conducting a systematic investigation of encryption currency practitioners, which sparked widespread attention and discussion within the industry. However, after thorough investigation and multiple confirmations, this claim was confirmed to be false information.

The actual situation is likely that there is a relatively large local encryption currency-related team in Hangzhou involved in the case, related to foreign exchange crimes, which may constitute illegal business operations. The previously circulated information may have resulted from misunderstandings due to the cooperation of the involved personnel or witnesses with the public security authorities in the investigation.

There are reports that some practitioners in the cryptocurrency industry in Hangzhou have been missing for several days, and the teams they belong to are relatively large in the industry. This further supports the speculation that specific teams are involved, rather than the claim that the entire industry is being investigated.

Warning to the encryption industry

Although the "Hangzhou Investigation" incident has been confirmed as a false report, it still serves as a wake-up call for the encryption currency industry, with two main points worth noting:

1. Understand the importance of regulatory red lines.
2. The correct response when facing a judicial investigation

regulatory red line

Currently, practitioners in the domestic encryption currency industry need to strictly avoid the following behaviors:

• Exchange virtual currency for fiat currency
• Develop exchange services between virtual currencies
• As a central counterparty for buying and selling virtual currencies
• Provide information intermediary and pricing services for virtual currency trading
• Participate in token issuance financing and virtual currency derivatives trading
• Establish an exchange and provide services to domestic residents
• Provide various services for overseas virtual currency exchanges
• Use terms such as "virtual currency", "encryption assets" in the company name.
• Engaging in virtual currency mining activities

It is important to note that although these restrictions stem from relevant regulatory notifications, they are not direct laws or regulations. In criminal cases, the principle of legality must still be strictly adhered to.

Appropriate response to the investigation

If you unfortunately encounter criminal legal issues, you can refer to the following suggestions:

1. Clarify your role: Understand whether you are being investigated as a witness or a suspect.
2. Pay attention to the investigation location: Witnesses may have more options, while suspects usually need to cooperate with the investigation at designated locations.
3. Attention to investigation time: There is a time limit for suspects, while witnesses are relatively flexible.
4. Verification of investigation procedures: Ensure the legality of the identity, relevant certificates, and documents of the investigators.

Conclusion

The working environment in the domestic encryption currency industry is becoming increasingly severe. Practitioners need to be particularly cautious when disseminating information and it is best to publish only after verification. In case of legal issues, it is advisable to consult a professional blockchain legal expert promptly. Although this incident has been confirmed as a false transmission, it serves as a reminder for industry practitioners to remain vigilant and strictly adhere to relevant laws and regulations.