Preventing Illegal Activities in Crypto: How to Avoid Ponzi Schemes, Proxy Buying, and Money Laundering

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In recent years, the blockchain industry has witnessed a surge in illegal activities disguised as digital currency trading. OKX maintains a zero-tolerance policy toward such practices, continuously enhancing its risk control systems to ensure a secure peer-to-peer (C2C) trading environment.

Common Crypto-Related Crimes and How to Avoid Them

1. Ponzi Schemes ("Money Games")

What They Are:
Ponzi schemes operate on a pyramid model, using new investors' funds to pay returns to earlier participants. These scams increasingly use USDT as an entry channel, luring victims with unrealistic profit promises.

Risks:

Prevention Tips:
👉 Learn to spot red flags in crypto investments

2. Proxy Currency Purchases

The Practice:
Acting as intermediaries to buy cryptocurrencies for others through C2C channels.

Why It's Dangerous:

3. "Money Running" (Illegal Payment Platforms)

How It Works:
Individuals are recruited to process transactions for shady platforms using personal payment accounts (WeChat/Alipay/bank cards), earning commissions.

Triple Threat:

  1. Legal Risk: Becomes part of money laundering chains
  2. Identity Theft: Personal/bank information exposure
  3. Scam Potential: Platforms often disappear with user deposits

OKX's Multi-Layered Security Measures

  1. AI Monitoring: 24/7 behavior analysis blocks suspicious withdrawal attempts
  2. Big Data Analysis: Screens every critical transaction point
  3. Real-Time Response: Immediate account freezing for high-risk users
  4. Biometric Verification: Face recognition for added security

FAQ: Protecting Yourself in Crypto

Q: How can I verify if a project is legitimate?
A: Check official registration documents, audit reports, and community reputation across multiple sources.

Q: What should I do if I suspect money laundering?
A: Immediately stop transactions and report to OKX's customer service.

Q: Are proxy buying services ever safe?
A: No. OKX prohibits all third-party trading—only transact through verified personal accounts.

Q: Why do scam platforms offer such high returns?
A: Unrealistic profits are bait to attract victims before collapsing the scheme.

Q: How does OKX protect my assets?
A: Through continuous AI model training and collaboration with global regulators.

👉 Discover OKX's security features

Final Reminder

OKX urges users to avoid all suspicious financial activities. Report any concerning behavior through official channels. Maintaining a secure C2C ecosystem remains our top priority—we'll keep advancing risk control technologies to safeguard your assets.