South China Morning Post: Chinese Police Publish Technical Paper Disclosing Methods for Tracking and Seizing Virtual Currencies

Foresight News reports that, according to the South China Morning Post, Sun Shengbin from the Wenzhou Public Security Bureau and Lou Yandi from the Criminal Investigation Division of the Zhejiang Provincial Public Security Department published a technical paper in the journal *Criminal Technology* on June 4. The paper systematically disclosed the forensic tools and case-handling procedures used by Chinese police for virtual currency assets such as Bitcoin ($BTC) and Ethereum ($ETH). The content covers aspects such as device cracking, evidence collection, on-chain transaction tracking, and asset freezing and seizure. The paper outlines several tracking methods, one of which involves tracing transaction fees back to exchanges like Binance, enabling police to obtain user data. Through formal legal channels, police can access "Know Your Customer" (KYC) records from major exchanges such as Binance, OKX, and HTX. For funds stored on exchanges, police can freeze accounts for six months, with the possibility of extending the freeze period. Additionally, the document emphasizes strict operational guidelines: investigators are prohibited from privately holding private keys. The principle of "separation of case handling and custody" must be upheld, with comprehensive supervision in place, along with the establishment of clear regulatory chain records.