DeHeng Secured Non-Prosecution Decision for Case Involving a Leading Exchange Suspected of Operating a Gambling Establishment

2025-09-08

In early 2024, DeHeng was mandated by two clients and assigned partners Liu Yang and Ma Yutao to represent them in a case involving a leading exchange suspected of operating a gambling establishment, investigated by a municipal public security bureau in Hunan Province. Thanks to the lawyers’ persistent efforts, the procuratorate issued a non-prosecution decision on the grounds that “the facts are unclear, the evidence is insufficient, and the conditions for prosecution are not met.”

This case involves a novel criminal case related to virtual currency transactions, with key points of dispute including the “legal classification of virtual currency contract trading,” “boundaries of criminal liability for technical personnel,” “legitimacy of cross-regional law enforcement procedures,” and “authentication of electronic data.” The successful defense of this case provides a reference for accurately defining virtual currency-related behaviors in legal practice, and an effective example for strictly distinguishing between “financial innovation” and “criminal activity.”