Discussion on Accurately Distinguishing Between Information Network Crime and Concealment of Criminal Proceeds in Virtual Money Crimes

With the rapid development of Virtual Money worldwide, the related legal issues are becoming increasingly complex, especially in criminal justice practice. The crimes of aiding information network criminal activities (referred to as "aiding crime") and concealing or disguising criminal proceeds and the crime of profit from criminal activity (referred to as "concealment crime") are two common charges in the chain of Virtual Money crimes, often leading to overlap and confusion in terms of factual determination and legal application.

This confusion not only affects the judicial authorities' accurate determination of the case but also directly relates to the severity of the defendant's sentencing. Although both crimes are important tools in criminal law for combating cybercrime and money laundering, there are significant differences in terms of subjective intention, methods of conduct, and sentencing ranges.

This article will deeply explore how to accurately distinguish between aiding and abetting crimes and concealment crimes in virtual money crimes through case analysis, legal reasoning, and practical experience, providing practical reference for relevant practitioners.

1. Case Introduction

Let’s first look at a practical case to understand the difference between the court's judgment on crimes involving coin-related assistance and concealment. In the concealment case of Chen Si and others judged by a certain provincial intermediate court, the basic facts of the case are as follows:

In December 2020, Li and others, knowing that others needed bank cards to transfer illegal criminal proceeds, organized Chen Si and others to use bank cards to transfer criminal proceeds. Chen Si and others, aware that Li and others were using bank cards to transfer illegal criminal proceeds, provided multiple bank cards that they had registered in their real names to participate in the transfer (some through the purchase of Virtual Money followed by the transfer), and conducted bookkeeping and reconciliation through online chat groups. According to statistics, the 3 bank cards provided by Chen Si transferred over 147,000 yuan in fraud funds.

In February 2021, Li and others were arrested by the public security organs. However, Chen Si and others continued to organize others to use bank cards to transfer illegal gains from criminal activities or to transfer funds by purchasing Virtual Money, with the amount involved exceeding 441,000 yuan.

The first-instance court found Chen Si guilty of concealing a crime and sentenced him to four years in prison, along with a fine of 20,000 yuan. Chen Si and his defense lawyer argued that the first-instance court mischaracterized the case, claiming it should constitute a lighter crime of aiding rather than the heavier crime of concealment. However, the second-instance court rejected the appeal and upheld the original verdict.

This case well illustrates the common points of dispute among the prosecution, defense, and trial parties when transferring upstream illegal criminal proceeds through Virtual Money, namely the applicability of the crime of aiding and abetting and the crime of concealment.

2. The Scope of Application of the Crime of Assisting and the Crime of Concealment in Criminal Cases of Virtual Money

In criminal cases involving Virtual Money, the applicable boundaries of the crime of aiding and abetting and the crime of concealment are usually closely related to the role positioning of the perpetrator, the degree of subjective awareness, and the consequences of the actions. Although both crimes require the perpetrator to have "knowledge," a careful examination reveals that the applicable scenarios for the two crimes actually have significant differences:

(1) Typical Application Scenarios of Assisting Crimes

The crime of aiding and abetting refers to the act of knowingly providing technical support, promotion, payment settlement, network storage, communication transmission, and other assistance to others who commit crimes using information networks. In the field of virtual money, common acts of aiding and abetting include:

1. Assist fraud groups in collecting coins and transferring coins;
2. Knowing that it is illegal funds, yet still providing address transfer services;
3. Provide a virtual money wallet address for fund transfer.

The key point of this crime lies in the "assistance" behavior that directly facilitates information network crimes, without the necessity of aiming to obtain profits as the final goal.

(2) Typical Applicable Scenarios of Concealment Crimes

Concealing crimes focuses more on assisting upstream criminals in handling "proceeds of crime", specifically manifested as the person knowing that it is criminal proceeds or its benefits, yet still assisting in transferring, acquiring, holding on behalf of, exchanging, etc. Common manifestations include:

1. Acquiring virtual money obtained by others through telecom fraud;
2. Knowing that it is illegal funds, still engaging in "money laundering" or exchanging it for legal tender;
3. Custody, withdrawal and other actions.

Concealment of crime emphasizes the actor's assistance in "digesting stolen goods", which is closer to the traditional meaning of "money laundering". The premise is a clear understanding of the criminal proceeds.

Therefore, the applicable boundaries of the two crimes depend on the stage at which the act occurs, the object of subjective awareness, and whether the act directly contributes to the success of the crime or deals with the results of the crime afterwards.

3. How to Accurately Distinguish Between Accessory Crimes and Concealment Crimes?

Accurately distinguishing between these two offenses requires a comprehensive judgment that combines subjective mindset, objective behavior, and objective evidence of the case; it cannot simply apply the offenses in a straightforward manner. The following three aspects are crucial:

(1) The objects of subjective knowledge are different.

1. Accomplice Crime: The actor must be aware of "others committing crimes using information networks" itself. That is: being aware that others are engaged in telecommunications fraud, gambling, infringing on citizens' personal information, and other online illegal activities (only a general awareness is required), while still providing assistance.

2. Concealment Crime: The actor must have knowledge that "the handled property is criminal proceeds." That is: it is not necessary to know the specific details of the original criminal act, it is sufficient to know that "the handled property or virtual money is illicit funds."

In other words, the "knowledge" in the crime of assisting in crime refers to awareness of the criminal act itself, while the "knowledge" in the crime of concealment refers to awareness of the proceeds of the crime.

(2) Different time points of behavior occurrence

1. The crime of aiding often occurs during or before the commission of a crime, playing a "supporting" role;
2. The crime of concealment usually occurs after the crime has been completed, serving the purpose of "laundering stolen goods".

For example, helping others to set up a virtual money wallet and participate in fund transfers may constitute the crime of assisting in the commission of a crime; however, if the crime has already been completed, handing over the virtual currency to others for safekeeping or selling it could result in the other party committing the crime of concealment.

(3) Whether it constitutes a completed crime

Concealment behavior often has a strong causal relationship with the criminal outcome. For example, without fund transfers, the scam gang cannot cash out the funds. Although the crime of assisting in crime also involves helping upstream crime "realize profits," it does not determine whether the upstream crime can be established.

For defense lawyers, the defense can be approached from the following two levels:

The first is the evidence aspect: it is necessary to focus on analyzing how the perpetrator acquires Virtual Money, whether the communication records mention upstream crimes, and whether there is an intention to "clean" the flow of funds.

The second aspect is the subjective level: if the defendant truly did not know that the upstream behavior was a crime, only knowing that "this fund is not clean," it should be considered to apply the crime of assistance and argue for a "minor offense" treatment.

4. Conclusion

Under the support of technologies such as high anonymity, ease of cross-border transactions, and decentralization in virtual money, the difficulty of applying criminal law has significantly increased, and the boundaries between the crime of aiding and the crime of concealment are becoming increasingly blurred. However, it is precisely within this blurred boundary that criminal lawyers in related fields should assume the role of "legal translators," not only mastering the skills of traditional criminal defense but also deeply understanding the underlying logic and actual uses of virtual money.

From the perspective of criminal policy, the precise application of light and heavy offenses concerns the restraint of the law and the realization of justice. From the standpoint of individual rights protection, the ability to accurately distinguish between aiding and concealing crimes directly determines the fate of the individuals involved.

In the future, with the further standardization of judicial practice and the gradual improvement of the legal system for Virtual Money, the application of law in this field will become clearer. However, before that, each differentiation of charges in criminal cases related to Virtual Money is a severe test of the professional ability and responsibility of lawyers.