Web3 companies are increasingly facing challenges from cross-provincial law enforcement actions, including account freezes and asset seizures, often driven by profit motives. The Supreme People's Procuratorate has identified such practices as requiring rectification, with over 19,000 cases of profit-driven enforcement handled by procuratorial organs by the end of 2025. These actions often involve unlawful jurisdictional overreach and improper use of criminal measures in economic disputes.
Businesses in the Web3 and crypto sectors, particularly those with centralized operations or elements of chance, are vulnerable to these enforcement actions. Companies are advised to implement legal strategies to counteract these measures, such as verifying investigator identities, preserving communication evidence, and engaging legal counsel to challenge improper jurisdiction and enforcement practices. The Supreme People's Court and Procuratorate have emphasized the need to address these abuses, signaling a push towards more lawful enforcement practices.
Web3 Firms Confront Cross-Provincial Enforcement and Account Freezes
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