Exploring the Legal Risks of Web3 Entrepreneurship from a Well-Known Crypto Assets Platform Internal Dispute

Recently, a dispute between Zhang, a core member of a well-known Crypto Assets platform, and Wang has attracted widespread attention. This dispute has escalated from a commercial conflict to a criminal case, eliciting different opinions from various sectors of society. As a criminal lawyer focused on the Web3 field, although I cannot directly access the case materials, based on my understanding of Web3 entrepreneurs and my experience handling related cases in the past, I would like to share some insights on compliance issues that should be noted in Web3 entrepreneurship.

I. Case Overview

According to public reports, a certain crypto assets platform was affected by a commercial dispute between core members Zhang and Wang, which led to Zhang being arrested by the police in Hangzhou on February 12, 2025, on suspicion of "illegally obtaining data from computer information systems." The next day, Zhang was taken to Shanghai. It is worth noting that the criminal case handling process usually involves multiple stages, including police investigation and prosecution review by the procuratorate, and the entire process may take several months.

It is reported that there are differences between the two parties regarding their roles in the project. Team Zhang believes they are at the partner level, while Wang denies this claim. In the absence of a successful negotiation, Team Zhang, led by Zhang, removed the data account permissions of the software owner in November 2024, which may be the direct cause of the incident.

2. Analysis of the Charges Involved

Zhang is currently suspected of the "crime of illegally obtaining data from computer information systems", which originates from Article 285, Paragraph 2 of our Criminal Law. This provision mainly targets the unauthorized intrusion into computer information systems or obtaining system data through other technical means, or illegally controlling the system. Depending on the severity of the circumstances, it can be divided into two sentencing levels:

1. Serious circumstances: imprisonment for a term of up to three years or criminal detention may be imposed, and a fine may be imposed or solely imposed.
2. The circumstances are particularly serious: a fixed-term imprisonment of more than three years but less than seven years may be imposed, along with a fine.

According to the current judicial interpretation, the specific criteria for "serious circumstances" include: obtaining a specific number of identity verification information, illegal gains, or causing economic losses that reach a certain amount, etc. "Particularly serious circumstances" are more than five times the above criteria.

3. Compliance Suggestions for Web3 Entrepreneurship

Entrepreneurial disputes in the Web3 space often stem from unclear early equity arrangements. In the initial stages of a project, partners may start a venture based on friendly relations, but once the project becomes profitable, especially when significant gains are realized, it can easily lead to distribution disputes.

In addition to common crimes such as embezzlement and tax-related offenses, Web3 enterprises also face some new types of computer crime risks. Therefore, Web3 entrepreneurs must pay attention to pre-compliance work:

1. Complete legal documents: Ensure that all necessary legal documents are complete, preferably drafted or reviewed by a professional lawyer, rather than simply downloading templates from the internet.

2. Hire professional consultants: It is recommended that the startup team hire a lawyer with experience in criminal defense and familiarity with the Web3 field as a legal advisor.

3. Proactively prevent risks: Many legal risks, especially criminal legal risks, can be avoided in the early stages. Timely seeking professional legal advice can help resolve potential conflicts and achieve a win-win situation.

4. Clarify the equity structure: Clearly define the equity distribution and responsibilities of all parties at the early stages of the project to avoid disputes in the future.

5. Standardize data management: Strictly control access permissions to core data and establish clear data management systems and operating procedures.

6. Compliance Training: Regularly conduct legal compliance training for team members to enhance overall risk awareness.

In conclusion, Web3 entrepreneurs should fully recognize the importance of legal risks. While pursuing innovation, they should also focus on compliance to ensure the long-term healthy development of their businesses.