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
