Recently, quite a few people in the crypto community have encountered this situation—a sudden phone call, with the caller claiming to be a local police officer, saying they need to verify your previous cryptocurrency transaction records. Your first reaction is probably confusion, but in most cases, it’s not as scary as it sounds. The key is to handle it the right way.

**Stay Calm—Normal Crypto Trading Is Not Illegal**

Don’t panic when you get the call. Keep this in mind: personal buying and selling of virtual currencies is not illegal, as long as your funds are legitimate and the platform is compliant. When talking to the police, don’t act evasive. Be straightforward: say you’re a retail trader, all your transactions are on regulated exchanges, and your transaction records are available for review. The police are most wary of people who are vague or evasive—if you’re open and honest, it’s easier for them to make a quick judgment.

**Cooperate With the Investigation—Don’t Create Trouble for Yourself**

If the caller mentions that a particular transaction may involve suspicious funds, don’t rush to defend yourself. The right approach is to express your willingness to cooperate, then immediately prepare all relevant materials—deposit and withdrawal records from exchanges, transfer screenshots, and chat evidence with your trading counterparty. Gather everything you can. Some people refuse to cooperate out of emotion, which turns a simple check into a full investigation. Remember: cooperating is always easier than resisting.

**It’s Most Likely Just Accidental Receipt of Dirty Money—Don’t Overthink It**

In most cases, it’s because your counterparty was involved in something suspicious, and you’re just being checked as part of the process. Usually, only the involved card or funds will be frozen; after confirming you’re not involved, everything will be unfrozen, there will be no criminal record, and your credit won’t be affected. As long as your transactions are legitimate, you won’t get dragged into the actual case.

**Prevention Is Key**

At the end of the day, no matter how large your crypto transactions are, don’t slack on risk control. Before every trade, make sure to verify three things: who the counterparty is, where the money is coming from, and whether the address is trustworthy. Making money is important, but don’t risk your own safety for convenience. Stay alert in your day-to-day operations and you’ll save yourself a lot of trouble when it matters most.