In the cryptocurrency circle, we old leeks have basically encountered all kinds of scams, including those who run away, score runs, scam cannons, pyramid schemes, frauds, etc. Of course, some people also encounter black production leading to their accounts being banned.
About "Black U", what is "Black U"?
USDT should be familiar to everyone, it is a stablecoin created by Tether, issued at a 1:1 peg to the US dollar. So it can be understood that 1U = 1 US dollar. Black U refers to USDT that has been involved in black production and marked as such.
For example: a foreign gambling platform uses USDT for money laundering, a person codenamed "Scorpion" uses U to pay for drugs at the China-Myanmar border, a corrupt official uses U to transfer his embezzled funds, etc.
Simply put, it's using normal U for illegal activities, the incidents are not public, not discovered, this U might still be clean, but once investigated or involved in a case, U will be marked, thus becoming harmful "Black U".
Why does "Black U" enter the market? Can't it be eradicated?
USDT can be said to be the "dirtiest" currency in the crypto circle.
Regarding card freezing, everyone should know about the positive and negative issues.
The positive is understood, receiving dirty money, so the card is frozen.
The reverse is when you spend clean money to buy dirty U, and nothing happens because these U might not have been checked, or they might have been mixed with other coins.
But once checked, sorry, your clean funds are involved in dirty transactions, so you will also be involved. This is called reverse card freezing. Your entire line will be frozen, even if you are innocent.
Why does Black U flow into platforms like Huobi, Binance, OKEx?
The reason is simple, these three are basically top platforms, their large trading volume is one of their advantages, and those who use U for illegal activities, they involve large amounts of funds, and their activities are not clean, so they choose these platforms to quickly process their transactions and launder their coins, because they also fear being investigated and left with nothing.
But once they successfully launder, they don't have to worry about these issues anymore, they can cash out with clean coins anytime, anywhere. And the reason for choosing U is simple, because it belongs to "stablecoins", with less price fluctuation, unlike Bitcoin, Ethereum whose fluctuations are too great, although some people choose these, but not many.
And this phenomenon cannot be eradicated unless these industries do not exist in the world. Otherwise, it really cannot be eradicated, because the nature of blockchain is here, the industry likes this method, it's much safer compared to other methods.
How to distinguish between clean and black U?
For us ordinary people, it is still quite difficult, after all, we can't tell the marked coins, only when they flow to exchanges or wallets, can their officials find out.
I can only give you some advice: how to avoid receiving "Black U"?
1. Each chain has its blacklist, you can check these addresses when you are free.
2. Do not touch U from addresses of runaway projects, although some are not marked, they are definitely not clean.
3. Do not be greedy for small cheap, many black production, runaway, scammed U, will be dealt with at a low price, the industry calls it "floating out U". Some clean U in urgent need of cash might float a little, but excessively floated U, please be cautious, it's easy to be trapped.
For example: the bulk price of normal U is 7 yuan, someone gives you 6.9, this might not be a big problem. But if someone offers you 6.5 or even lower, please be cautious, it's easy to be trapped.
4. When doing OTC transactions, it's best to find old merchants, preferably those who have been in business for over five years, everything certified. Rather than those who have been in business for a few weeks or months, this reduces the risk.
5. When buying U, try to go through exchanges, after all, exchanges have their risk departments, while going directly through wallets is riskier.
6. Also pay attention to transfers between wallets, because there are old and new wallets, you can tell by checking their addresses. Between new and old wallets, prioritize old wallets. Reason: marked wallets can transfer out but not in, and most criminals choose new wallets for transactions, new wallets have fewer records, which is convenient for them.
7. Touch fewer coins from small exchanges, because there are "bosses" who use small exchanges to launder money.
The harm of "Black U" is so significant that even Tether will come forward to mark it, so avoid it as much as possible.
