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Virtual Currency Exchange Charged with Operating a Gambling Den: How Can Lawyers Successfully Defend HR, BD, and Other Positions? (Including a 10,000-Word Legal Opinion)

English Summary: This article by lawyer Shao Shiwei addresses the increasing criminal prosecution of virtual currency exchanges in China for operating gambling establishments, specifically focusing on defenses for employees in roles like HR and BD. The author, drawing from cases in late 2025 and ongoing into 2026, highlights the complexity of these cases, which blend legal, policy, and social considerations rather than being purely legal matters. The core defense strategy proposed is to pursue an "innocence defense" to achieve practical outcomes like reduced sentences, probation, or non-prosecution. This involves rigorously arguing that the case is not a traditional gambling operation, particularly challenging the classification of financial products like "perpetual contracts" as gambling. It also emphasizes the lack of subjective intent for employees in technical, operational, or support roles who couldn't reasonably foresee their work being deemed criminal. The defense "combination punch" includes combining in-court and out-of-court strategies, meticulous cross-examination of evidence (especially forensic and audit reports), identifying gaps in the prosecution's case against legal standards, and focusing on procedural details to argue insufficient evidence. A key risk warning is extended to all Web3 professionals in China—including developers, designers, HR, BD, and客服—who may face criminal investigation if their platform is targeted, urging careful risk assessment before employment. The article concludes by questioning whether perpetual contracts constitute gambling, stressing the need for case-specific analysis and that the prosecution bears the burden of proof. It includes excerpts from a defense document for reference) and disclaims providing specific legal advice.

marsbit01/07 08:06

Virtual Currency Exchange Charged with Operating a Gambling Den: How Can Lawyers Successfully Defend HR, BD, and Other Positions? (Including a 10,000-Word Legal Opinion)

marsbit01/07 08:06

"Assets Dormant for Three Years" Will Be Confiscated? The Truth About California's New Bill SB 822 Explained

A new California law, SB 822, which takes effect in 2026, has caused concern in the crypto community over fears that inactive exchange accounts could be "confiscated." However, this is a misunderstanding. The law extends the state’s existing Unclaimed Property Law (UPL) to digital assets held on centralized exchanges. Key points: - Assets are considered "unclaimed" only if there has no owner activity for three years AND the exchange is unable to contact the owner. - "Owner activity" is broadly defined and includes logging in, trading, or even just responding to an email, which resets the three-year timer. - Exchanges must send a prominent warning notice 6-12 months before reporting assets to the state. A simple response stops the process. - Crucially, transferred assets are NOT immediately liquidated. The state must hold the original crypto for 18-20 months, allowing owners to reclaim their exact tokens. Only after that may assets be sold for cash. - The law only applies to assets held on centralized exchanges (the "holder"). Self-custodied wallets, like cold wallets or DeFi LP tokens, are completely exempt. - Owners can always claim their property from the state, even years later, though they may receive cash instead of crypto if it was already sold. The article advises users to perform a simple activity (e.g., logging in) annually to keep accounts active or move large holdings to self-custody to avoid the law entirely. It concludes that SB 822, while intrusive, provides a legal safety net that protects user assets from being lost or misappropriated by failed exchanges.

marsbit01/07 07:07

"Assets Dormant for Three Years" Will Be Confiscated? The Truth About California's New Bill SB 822 Explained

marsbit01/07 07:07

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