It's so easy to encounter dirty money when withdrawing funds. Why don't exchanges dare to open a frozen fund compensation area?

For many years, retail investors in the cryptocurrency space have had a persistent pain point that hasn't been resolved: frozen accounts when withdrawing USDT.

Whether you are on a large exchange or a private guarantee platform, retail investors will always face account freezes, and many end up losing everything due to direct involvement with illicit activities, landing on the blacklist for account restrictions.

Three years ago, I proposed a concept: full compensation for frozen accounts without reason. If any platform or exchange can achieve this, it will definitely stand out.

To be honest, whether it's a shady exchange or the so-called top three exchanges, they have become havens for criminals to launder money. Except for a certain exchange, which is relatively legitimate and doesn't need to engage in bad practices, the traffic of other exchanges has been siphoned off, making it impossible to operate without engaging in illicit activities. This is also the principle of bad money driving out good.

Today, I won't talk about safe methods for withdrawing USDT. Those who can understand it will understand, and those who can't won't be saved.

As a retail investor or a novice, regardless of where you obtained your USDT, you must follow the methods outlined in this article during your trading process.

You must find a cryptocurrency dealer that promises full compensation for frozen accounts, whether you are trading over-the-counter (OTC) or on an exchange.

What you need to find is a cryptocurrency dealer that you can absolutely trust to safely withdraw your USDT.

So how do you distinguish a cryptocurrency dealer that can be absolutely trusted?

First is real-name verification: the dealer must have a verifiable real name, and their contact information should be a real-name phone number that can provide verification.

With these, you can add them to your list of trusted dealers.

The most important point: the dealer must offer full compensation for frozen accounts without reason.

Many people use the guise of full compensation for frozen accounts, and of course, there are many critics who say that this is just a marketing gimmick. Therefore, this gimmick needs to be turned into an executable plan, rather than just talk.

This is why we need the dealer's identity information and property details; these can increase the dealer's cost of breach. If the dealer is also an established entity, that's even better. They rely on their reputation and influence to make money, which is far more important than the amount you are trading. You see, I have been operating as a dealer for many years, starting from Huobi six years ago, and not a single person has complained about a card being frozen in transactions with me. (Just a little self-promotion)

Why don't exchanges dare to open a frozen fund compensation area without reason?

Current OTC exchanges have completely become places for scammers to launder money, with all sorts of shady characters transforming into OTC dealers, leading to an increase in illicit activities.

Gradually, I estimate that authorities will directly list those who engage in OTC trading on exchanges that lead to account freezes as bad actors, or they will be fully aware of it. Just like those who used to engage in score running, scammers would teach them that if they were scammed while laundering money, their accounts would be frozen. If they had said this to the authorities back then, they would have been punished.

Because all score runners use this narrative, this is why those who are scammed while laundering money face account restrictions and cannot appeal.

The first reason is that their funding source is buyers who purchase cryptocurrencies on exchanges, and now, those still buying USDT on exchanges are mostly retail investors, with very few good actors left. Money laundering, telecom fraud, adult streaming, gambling, pyramid schemes, and illegal currency exchange are the main activities on these platforms.

And legitimate cryptocurrency dealers also dare not make this promise, earning only 1-3 cents per USDT. As soon as they encounter a single illicit transaction, they could lose everything or even face severe consequences. The risk and reward are simply not proportional.

If they freeze your account, their cost of blacklisting you is zero. Why would they compensate you?

Self-media KOLs can actually make this promise because their IP is valuable, and they also need to charge a premium compared to regular dealers.

How can exchanges open a frozen fund compensation area without reason?

That would require a huge security deposit, for example, dealers providing a substantial security deposit on the platform.

If an account is frozen, the platform verifies it and directly compensates the user using the dealer's security deposit.

This way, dealers would absolutely not dare to act recklessly, and genuine users would feel secure and be willing to offer around a 3% profit margin to dealers, leading to a better market. They would trade on major exchanges, and ultimately, profits would be withdrawn through this platform.

Those engaging in illicit activities would naturally find no market. As long as users do not face account freezes, this platform can quickly stand out, and the OTC industry will become increasingly legitimate. This market is vast and unimaginable, but those involved in money laundering, telecom fraud, adult streaming, gambling, pyramid schemes, and illegal currency exchange will leave these exchanges, resulting in a loss of OTC traffic. This is why they do not dare to open such areas.

However, this is a huge market, and I truly hope that some exchanges can pay attention to the retail investor community and open such an area. (Don't ask me if I've done it; I have, but it didn't work out. My clients found it too troublesome.)

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