Mirror Tang claimed crypto workers in Hangzhou were informally summoned by police and had their devices searched using forensic tools.
Jack Kong refuted any coordinated action by authorities, suggesting isolated incidents may relate to fraud prevention.
Community members, including a former team member of Tang’s project, criticized the public claims for causing reputational harm.
Unverified claims of targeted police investigations in Hangzhou have drawn sharp reactions from China’s Web3 industry, revealing a divide between insiders over the nature and scope of law enforcement activity in the city.
On June 9, Mirror Tang, founder of the decentralized proving network ZEROBASE, said on X that multiple crypto professionals in Hangzhou were been asked to report to police stations for questioning.
Conflicting Claims Clash Over Reported Police Activity
According to his post, people were told to bring laptops and phones, with officers using forensic devices to extract chat histories, wallet records, and development files.
Tang described the investigations as informal, with no legal summons or search warrants issued, but noted that police focused on roles related to token issuance, fundraising, and operations.
“There’s a focus on structure and financial flow, not isolated actions,” Tang wrote.
He characterized the situation as a possible trial effort tied to Hangzhou’s status as a digital finance governance zone.
“Hangzhou has long been treated as an experimental zone for digital finance governance—this sweep may be a national pilot,” He wrote added.
Jack Kong, CEO of Nano Labs and a prominent industry figure in the Chinese Web3 community, publicly pushed back.
“To my knowledge, neither Zhejiang nor Hangzhou has taken any special actions against blockchain professionals,” Kong stated, adding that his recent meetings with local officials suggested no heightened scrutiny. “Any individual cases may be related to anti-fraud efforts.”
“If anyone has concerns, you’re welcome to move into the Hangzhou-Hong Kong Science and Technology Building, this is the home of the Web3 industry in Hangzhou,” Kong said.
Community Members in China Express Concern
EnHeng, who previously worked at ZEROBASE and is familiar with the parties involved, criticized the public claims.
“It’s heartbreaking. [Kong’s] years of work were largely ruined because someone casually rode the project’s hype,” he wrote, noting the discomfort Tang’s post caused within the group.
He also emphasized that unrelated teams like YZi Labs should not be drawn into speculation.
Without official confirmation, the community remains divided over whether a systematic enforcement action occurred or whether isolated cases are being misrepresented.
Despite the uncertainty surrounding the Hangzhou incident, legal ambiguity remains a persistent concern for crypto professionals operating in mainland China. While outright bans on cryptocurrency trading and fundraising have been in place since 2021, the enforcement of these rules often varies across jurisdictions.
In the absence of consistent regulatory clarity, industry participants continue to manage compliance with limited guidance, relying on internal protocols and peer patterns to anticipate potential scrutiny.
Frequently Asked Questions (FAQs)
What legal basis could Chinese authorities use to investigate crypto professionals?
Authorities may act under laws related to illegal fundraising, money laundering, or financial fraud, even in cases without formal criminal charges.
What are the risks for non-core team members caught in such inquiries?
People involved in community management, marketing, or content creation may face scrutiny if their work overlaps with fundraising or token promotion. Without a clear separation of roles, they risk being associated with legal or financial violations beyond their control.
How are crypto projects in China adapting to regulatory uncertainty?
Many teams now separate operational roles across jurisdictions, keeping technical development offshore while conducting marketing and community efforts domestically. However, this split structure still exposes them to scrutiny under evolving local interpretations of financial law.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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(@punk8185) June 10, 2025