How to Accurately Distinguish Between the Crime of Assisting Information Network Criminal Activities and the Crime of Concealing or Hiding Criminal Proceeds in Virtual Money Crimes

With the rapid development of Virtual Money globally, the legal issues related to it are becoming 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 or disguising criminal proceeds (referred to as "concealment crime") are two common charges in Virtual Money crimes, but confusion often arises in their practical application. This confusion not only affects the accurate determination of cases by judicial authorities but also directly relates to the severity of sentencing for the defendants.

This article will delve into how to accurately distinguish between abetting crimes and concealing crimes in virtual money offenses, providing practical references for relevant practitioners.

1. Case Study

Taking the case of Chen Si and others concealing information as an example, as judged by the Intermediate People's Court of Jiaozuo City, Henan Province ((2022) Yu 08 Criminal Final No. 50), the basic facts of the case are as follows:

In December 2020, Li Gang 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 provided their real-name bank cards to participate in the transfer (some through purchasing Virtual Money and then transferring), and conducted bookkeeping and reconciliation through online chat groups. According to statistics, the three bank cards provided by Chen Si transferred over 147,000 yuan in fraud funds.

In February 2021, after Li Gang and others were captured, Chen Si and others continued to organize others to use bank cards to transfer illegal criminal proceeds 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 the crime of concealing, sentencing him to four years of imprisonment and imposing a fine of 20,000 yuan. Chen Si and his defense lawyer believe that he should be charged with the lesser crime of aiding and abetting, but the second instance court dismissed the appeal and upheld the original judgment.

This case illustrates the common points of contention among the prosecution, defense, and court when transferring illegal gains through Virtual Money, specifically regarding the applicability of the crimes of aiding and abetting and concealment.

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

In criminal cases involving Virtual Money, the applicable boundaries of the crime of aiding and abetting and the crime of concealment are closely related to the role positioning of the actor, the degree of subjective awareness, and the consequences of the act. Although both crimes require the actor to "know" clearly, their applicable scenarios have obvious differences:

(1) Typical Application Scenarios of the Crime of Assisting in Criminal Activities

The crime of assisting others 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. For virtual money, common acts of assisting crimes include:

1. Assist scam groups in collecting coins and transferring coins;
2. Knowingly providing address transfer services for illegal funds;
3. Provide a virtual money wallet address for "running scores" or transfer.

The key point of this crime lies in the "assistance" behavior that directly facilitates information network crimes, without the need to aim for final profit.

(2) Typical Application Scenarios of Concealment Crimes

Concealing crimes focuses more on assisting upstream criminals in handling "ill-gotten gains", specifically manifested in the behavior of the individual who, knowing it is criminal proceeds or its benefits, still assists in transferring, acquiring, holding on behalf of, or exchanging it. Common manifestations include:

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

The emphasis on concealing crimes highlights the perpetrator's assistance in "digesting illicit gains," which is closer to the traditional meaning of "money laundering," provided there is a clear understanding of the criminal proceeds.

Therefore, the applicable boundaries of the two crimes lie in the stage at which the act occurs, the object of subjective knowledge, 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 Aiding and Abetting Crimes and Concealment Crimes?

Accurately distinguishing between these two charges requires a comprehensive judgment based on subjective mindset, objective behavior, and objective evidence of the case; it cannot be simply applied with a label. The following three aspects are crucial:

(1) The subjectively known objects are different.

1. Assisting in crime: The actor must be aware of "others committing crimes using information networks". That is: being aware that others are engaging in online illegal activities such as telecommunications fraud, gambling, and infringing on citizens' personal information (it is sufficient to have a general awareness), and still providing assistance.

2. Concealment of Crime: The actor must have knowledge that "the property being dealt with is derived from criminal activity." That is: it is not necessary to be aware of the specific details of the original criminal act, it is sufficient to know that "the property or Virtual Money being dealt with is illicit funds."

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

(2) Different time points of the behavior occurrence

1. The crime of aiding and abetting often occurs during or before the crime, playing a "supporting role";
2. Concealment offenses usually occur after the completion of a crime, serving the purpose of " laundering stolen goods".

For example, helping a scammer set up a virtual money wallet and participate in the transfer of funds may constitute aiding and abetting; however, if the scammer has already completed the fraud and hands the coins over to someone else for safekeeping or sale, the other party may then constitute a concealment crime.

(3) Whether the crime was completed.

Concealment behavior often has a strong causal relationship with the criminal outcome. For example, without money laundering transfers, the funds of a fraud gang cannot be cashed out. Although aiding and abetting crimes also involve helping upstream criminals "realize profits," it does not determine whether the upstream crime can be established.

For defense attorneys, the defense can start from the following two levels:

The first is the evidence level: it is necessary to focus on analyzing how the actor acquires coins, whether communication records mention upstream crimes, and whether there is an intention to "clean up" the coin's trajectory.

The second aspect is the subjective level: if the defendant truly did not know that the upstream behavior was a crime and only knew that "this coin is not clean," consideration should be given to applying the crime of assisting in a crime, advocating for a "minor offense" treatment.

4. Conclusion

Under the support of the highly anonymous, easily cross-border, and decentralized technology of Virtual Money, the difficulty of applying criminal law has significantly increased, and the boundaries between the crime of aiding and the crime of concealment have become increasingly blurred. However, it is precisely in this blurred boundary that criminal lawyers in related fields should take on the role of "legal translators," not only mastering the skills of traditional criminal defense but also deeply understanding the underlying logic and practical uses of coins.

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

In the future, as judicial practices are further standardized and the legal system for virtual money gradually improves, the applicability of laws in this field will become clearer. However, before that, each differentiation of charges in criminal cases related to virtual currencies is a severe test of lawyers' professional competence and sense of responsibility.