For friends engaged in cryptocurrency asset trading, understanding potential legal risks and compliance procedures is crucial. Once involved in a judicial investigation, there are typically three key stages, and understanding these steps in advance can help you respond more effectively:

**First Key Point: Legal Nature of Virtual Assets**

Many people panic when they hear "cryptocurrencies are not legally protected," but this statement can be misleading. Lack of legal protection does not mean your transactions are illegal. The reality is: voluntary normal transactions are usually not interfered with, but if you encounter fraud or disputes, judicial authorities may be unable to help you recover virtual assets. The best strategy is to calmly acknowledge this risk—be aware of these potential issues before trading, and understand that all actions are voluntary and at your own risk.

**Second Key Point: Handling of Fraudulent Funds**

If your account is found to involve scam funds, refunds are not negotiable but are a legal process. This process is mandatory, but there is room for discretion in how it is carried out. You can communicate fully with the investigating authorities and, if necessary, negotiate directly with the victims under guidance. Only after reaching an agreement can the account be unfrozen. The key is cooperation rather than confrontation—resisting will only complicate matters further.

**Third Key Point: Account Handling and Credit Impact**

This depends on multiple factors. If your attitude is serious, and you provide complete documentation proving that your funds and transaction processes are compliant, you generally will not have a criminal record, and other bank accounts will not be affected. However, pay attention to the classification of involved accounts:

The most severe first-level accounts may be restricted jointly by banks and public security departments, potentially causing all your bank cards to be affected; second-level accounts have a relatively limited impact, usually only freezing that specific account.

**Final Reminder**

Cryptocurrency asset trading is essentially a game in a gray area, far less straightforward than ordinary e-commerce transactions. Regardless of the transaction size, you must carefully verify the identity of your trading counterpart and the source of funds. Do not accept funds from unknown sources. Small gains or cheap deals may ruin your account, credit record, and even personal reputation—this is a cost that is never worth paying.