The Truth Behind the "Hangzhou Investigation" Incident in the Encryption Industry

Recently, there has been new progress in the "Hangzhou investigation" incident circulating in the cryptocurrency industry. After verification and confirmation from multiple sources, including inquiries to the relevant judicial authorities in Hangzhou and information obtained through other channels, the claims regarding the systematic investigation of encryption practitioners by the Hangzhou police have been confirmed to be false information.

Event Review and Truth Revelation

On June 10th, an article claiming that the Hangzhou police were conducting a systematic investigation of cryptocurrency practitioners appeared on social media, causing widespread attention and discussion within the industry. However, after in-depth investigation and multiple verifications, this statement has been confirmed as false information.

The actual situation may involve a relatively large-scale encryption-related team in Hangzhou that is implicated in the case, and it is likely related to foreign exchange crimes. Preliminary judgment suggests it could be an illegal business operation offense. The previously circulated information may have originated from the process of individuals involved in the case or witnesses cooperating with public security investigations. There are reports that some encryption industry practitioners in Hangzhou have been missing for several days, and the team they belong to is quite large.

Warning to the encryption industry

Although the "Hangzhou investigation" incident has been confirmed to be untrue, it still serves as a wake-up call for the encryption industry. Industry practitioners need to pay attention to the following points:

1. Clearly defined regulatory red lines: According to existing regulatory provisions, activities prohibited for onshore encryption practitioners include but are not limited to:

   • Exchange of virtual currency and fiat currency
   • Exchange between virtual currencies
   • As a central counterparty for trading virtual currencies
   • Provide information intermediary and pricing services for virtual currency transactions
   • Token issuance financing and virtual currency derivatives trading
   • Establish a cryptocurrency exchange and provide services to mainland residents
   • Provide various support services for overseas virtual currency exchanges
   • Use terms like "virtual currency", "encryption currency" to name enterprises
   • Virtual currency mining activities

2. Understand how to deal with investigations: If unfortunately faced with criminal legal issues, encryption industry practitioners should:

   • Understand your situation and distinguish whether you are being investigated as a witness or a suspect.
   • Pay attention to the location and time constraints of the investigation.
   • Pay attention to whether the legal procedures during the investigation process are complete.

Conclusion

The operating environment of the domestic encryption cryptocurrency industry is becoming increasingly severe. Practitioners need to be particularly cautious when disseminating information and it is best to publish only after verifying its accuracy. In case of legal issues, it is advisable to consult a professional lawyer in the blockchain field promptly. Although the "Hangzhou investigation" incident has been confirmed as false information, it reminds us that in a complex regulatory environment, practitioners in the encryption cryptocurrency industry must remain vigilant at all times, strictly adhere to laws and regulations, to ensure their own rights and the healthy development of the industry.