Distinction Between Aiding Crimes and Concealment Crimes in Virtual Money Crimes

With the widespread use of Virtual Money, related legal issues have become increasingly complex, especially in criminal justice practice. The crime of assisting information network criminal activities (referred to as "assisting crime") and the crime of concealing and hiding proceeds of crime (referred to as "concealment crime") are two common charges in Virtual Money crimes, but in practical application, confusion often occurs.

This confusion not only affects the accurate determination of the case but also directly relates to the severity of the sentencing. Although both crimes are important tools for combating cybercrime and money laundering, there are significant differences in terms of subjective intent, methods of committing the crime, and sentencing ranges.

1. Case Analysis

Taking a case ruled by the Intermediate People's Court of Jiaozuo City, Henan Province as an example, the case details are as follows:

In December 2020, Chen Si and others, knowing that others needed bank cards to transfer illegal gains, provided their own bank cards to participate in the transfer, part of which was completed by purchasing Virtual Money. The 3 bank cards provided by Chen Si transferred over 147,000 yuan of telecom fraud funds.

In February 2021, despite the arrest of relevant personnel, Chen Si and others continued to organize others to transfer money using bank cards or Virtual Money, with the amount involved reaching over 441,000 yuan.

The first-instance court found Chen Si guilty of concealment and sentenced him to four years in prison, along with a fine of 20,000 yuan. The second-instance court rejected the appeal and upheld the original verdict.

This case reflects the common disputes among the prosecution, defense, and judiciary regarding the application of the crime of assisting in the transfer of illegal gains from Virtual Money and the crime of concealment.

2. Scope of Application of the Two Crimes

In criminal cases related to virtual money, the applicable boundaries of the crimes of assisting and concealing are closely related to the role of the actor, their subjective understanding, and the consequences of their actions.

Typical scenarios of coin fraud:

1. Assist scam groups in collecting or transferring Virtual Money;
2. Providing address transfer services knowing that it is illegal funds;
3. Provide a virtual money wallet address for fund transfer.

The key to the crime of aiding and abetting lies in the fact that the actions directly facilitate cybercrime, without the necessity of obtaining profit as a purpose.

Typical scene of concealing a crime:

1. Acquiring virtual money obtained through telecom fraud;
2. Knowing that it is illegal funds, still engage in "money laundering" or exchange it for fiat currency;
3. Custody, withdrawal, and other actions.

The concealment of crime emphasizes the perpetrator's assistance in handling "illicit funds", which is closer to the traditional meaning of "money laundering", provided there is a clear understanding of the criminal proceeds.

3. How to Accurately Distinguish Between the Two Crimes

Accurately distinguishing between these two crimes requires a comprehensive consideration of subjective mentality, objective behavior, and case evidence; one cannot simply apply the charges. The key points are as follows:

(1) The subjectively known object is different.

1. Lending Crime: The actor must be aware that others are committing crimes using the internet.
2. Concealment Crime: The actor must be aware that the property they are handling is derived from criminal activity.

(2) The time points of the behavior occurrence are different.

1. The crime of fraud often occurs during or before the crime is committed.
2. The crime of concealment typically occurs after the crime has been completed.

(3) Whether it constitutes the completion of a crime

There is usually a strong causal relationship between the act of concealment and the criminal result, and while the crime of assisting may also help in "monetizing" the crime, it does not determine whether the upstream crime can be established.

For defense attorneys, we can approach it from the following two aspects:

1. Evidence Level: Analyze the methods of acquiring Virtual Money, relevant communication records, fund flows, etc.
2. Subjective Aspect: If the defendant is not clearly aware that the upstream behavior is a crime, consideration may be given to asserting the application of the crime of aiding and abetting.

4. Conclusion

The technical characteristics of virtual money increase the difficulty of applying criminal law, making the boundaries between the crime of aiding and the crime of concealing more ambiguous. This requires relevant legal practitioners to not only master traditional criminal defense techniques but also to have a deep understanding of the operational mechanisms of virtual money.

Accurately distinguishing between these two charges is not only related to the restraint of the law and the realization of justice, but also directly affects the fate of the parties involved. With the deepening of judicial practice and the improvement of relevant legal systems, the application of law in this field will become clearer in the future. Prior to this, every distinction of charges has been an important test of the professional ability of legal practitioners.