The judicial stance on Bitcoin and USDT has evolved into a rigid "Prohibition and Non-Protection" model.

Based on recent rulings from the China Judgments Online (裁判文书网) and the Supreme People’s Court (SPC) through 2024 and 2025, the judicial stance on Bitcoin and USDT has evolved into a rigid "Prohibition and Non-Protection" model.

Below is a professional analysis of the most common criminal and civil case types involving Bitcoin and USDT in Mainland China.

1. Criminal Case Analysis: USDT & "Illegal Business Operations"

The most frequent criminal cases in 2024 and 2025 involve OTC (Over-the-Counter) trading of USDT, categorized under Article 225 of the Criminal Law: Illegal Business Operations.

Case Example (2024 - Beijing/Qingdao): A defendant was sentenced to 3+ years for acting as a "U-Dealer" (U商), exchanging USDT for RMB at a scale exceeding 600 million RMB.
Court Logic: Even though Bitcoin is a "virtual commodity," the act of providing a medium for exchange between virtual currency and legal tender (RMB) constitutes unlicensed financial settlement.
Key Finding: Courts now emphasize the "Public Financial Order" over "Individual Property Rights." If your transaction facilitates the flow of funds outside the state-monitored banking system, it is criminalized regardless of your profit margin.

2. Money Laundering & The "Concealment" Crime

Cases involving Article 312: Concealing or Disguising Criminal Proceeds have spiked due to the anonymity of USDT.

Case Example (2025 - Anhui/Chizhou): A defendant sold USDT to a buyer and received 200,000 RMB in cash. The court ruled that because the defendant "should have known" (应当预见) the cash was derived from fraud (due to the use of cash and encrypted chats), the defendant was guilty of money laundering.
The "Should Have Known" Standard: In 2025, the burden of proof has shifted. If you trade crypto in a way that avoids traditional banking (e.g., face-to-face cash, Telegram chats), the court presumes you are knowingly assisting in money laundering.

3. Civil Case Analysis: "Invalid Contracts" & Loss of Claims

Civil disputes over Bitcoin or USDT debt consistently end in the dismissal of the lawsuit (驳回起诉).

Case Example (2024 - Chongqing/Shenzhen): A plaintiff lent 50,000 USDT to a friend. When the friend failed to repay, the court ruled the loan agreement was void because USDT "cannot and should not circulate as currency."
Judicial Pragmatism (司法实用主义): Courts may recognize Bitcoin as property to allow police to seize it from criminals, but they will refuse to protect it in a private civil lawsuit. If you lose Bitcoin to a business partner, the court will likely tell you that "the risk is yours to bear" because the transaction was against public policy.

Summary of Legal Risks in Mainland China Trade

Risk Category	Judicial Reality (2025)	Consequences
Contractual	Crypto payment terms make the whole contract void.	No legal right to sue for payment.
Banking	High correlation with "Frozen Cards" (司法冻结).	Corporate funds locked for 6+ months.
Criminal	OTC trading is often viewed as Illegal Business.	Imprisonment (3-7 years) and massive fines.
Employment	Using USDT for salary is illegal (Chaoyang Court, 2022/2024).	Labor law violations and tax evasion charges.

Strategic Recommendation from HireLawFirm.cn

The judicial data from China Judgments Online makes one thing clear: The Chinese legal system will not help you if your crypto-trade goes wrong.

To protect your international trade interests, we suggest the following at www.hirelawfirm.cn:

Drafting "Fiat-Only" Contracts: We ensure your payment terms are 100% compliant with the 2025 PRC Company Law to maintain your right to sue.
Compliance Audits: We vet your Chinese counterparties to ensure their funds are not coming from "grey" crypto exchanges.
Frozen Account Recovery: If your account is flagged during a "U-transaction" sweep, we provide the formal legal defense required to prove your innocence to the authorities.

"In the 2025 legal climate, a single USDT transaction can compromise a decade of business growth."