One of the reasons for this large-scale frozen card is the inflow of funds involved in the foreign exchange fund plate. As we all know, due to the characteristics of digital currency, and in 2019, the country has done strict supervision and risk control on the payment channel. It is against this background that the black industry is eyeing the digital currency space. Once illicit funds are involved, they may face the risk of frozen cards. Generally speaking, there are several reasons for freezing cards: one is killing pigs and other funds involved in illegal funds, the second is telecom fraud, the third is spinach funds. The reason behind the large-scale frozen card in June is that the funds involved in the foreign exchange fund plate flow into the currency circle, which can reach a wide range of people after subsequent circulation and trading. In recent years, we can see that the number of foreign exchange funds and the amount of money involved are constantly rising, which is actually illegal fund-raising and fraud in the name of foreign exchange. We should be alert to the risk of being affected by freezing cards.

According to the currency merchant in this case, the amount of black money involved in this case is about CNY 3 billion, and OTC Yuan Fei team of Huobi, a well-known exchange, conducted several targeted transactions, aiming to convert all black money into digital currency, so as to carry out white washing operation. It is this operation that led to the freezing of more than four thousand bank cards in the currency circle, and almost all the merchants on Huobi were affected, some of them were frozen cards, and some of them were also facing prison. The total number of Huobi OTC teams detained this time is about 13, and the number of merchants involved is as high as 215, which is an eye-popping figure.