Compliance Warning for Web3 Entrepreneurs: Starting from a Business Dispute

Recently, a commercial dispute involving a certain digital currency project has attracted widespread attention. This dispute escalated from a commercial disagreement to a criminal case, sparking numerous discussions within the industry. As a criminal lawyer focused on the Web3 field, although not directly involved in this case, based on my understanding of Web3 entrepreneurs and my experience in handling related cases, I would like to share some thoughts on compliance issues in Web3 entrepreneurship.

Case Overview

According to multiple sources, a platform focused on a certain blockchain ecological mini-game has fallen into difficulties due to disputes between partners. On February 12, 2025, one party was arrested by the police in Hangzhou on suspicion of "illegally obtaining data from a computer information system." The next day, the suspect was transferred to Shanghai.

According to public reports, the core of the dispute lies in the differing perceptions of the cooperative relationship between the two parties. One party believes they are project partners, while the other denies this identity and believes the former only provided some resource support. After the failed negotiations, the Hangzhou team took action in November 2024 to remove the data account permissions of the other party, which may have been the direct cause of the incident.

About "Crime of Illegally Obtaining Computer Information System Data"

In this case, the suspect is accused of the crime of "illegally obtaining data from computer information systems." According to the provisions of Article 285, Paragraph 2 of our Criminal Law, this crime mainly targets unauthorized intrusion into computer systems, obtaining data, or illegally controlling the system.

According to the current judicial interpretation, the criteria for determining "serious circumstances" include:

1. Obtain a certain number of specific types of identity authentication information.
2. Illegal gains or economic losses reach a certain amount
3. Other situations deemed to be serious in nature

The standard for particularly serious cases is usually more than five times the above standard.

Web3 Entrepreneurship Compliance Recommendations

This case highlights the importance of compliance in Web3 entrepreneurship once again. From practical experience, many similar disputes stem from the failure to clarify equity arrangements during the early stages of cooperation. When projects begin to generate profits, especially when substantial gains are achieved, disputes are likely to arise.

To avoid similar risks, Web3 entrepreneurs should:

1. Emphasize pre-compliance: Ensure all necessary legal documents are complete, preferably drafted or reviewed by a professional lawyer.

2. Clearly define equity and roles: Clearly delineate the rights, responsibilities, and profit distribution among all parties from the early stages of the startup.

3. Hire professional consultants: It is recommended to hire a lawyer familiar with Web3 and criminal law as a consultant to timely identify and avoid potential risks.

4. Establish a dispute resolution mechanism: Pre-establish a reasonable internal dispute resolution process to prevent conflicts from escalating.

5. Comply with data and system management regulations: Strictly adhere to relevant laws and regulations to avoid committing crimes related to computer information systems.

6. Maintain communication and transparency: Regularly communicate with partners and maintain transparency in finances and operations.

As legal practitioners in the Web3 field, we strongly advise entrepreneurs to pay attention to legal risk management. Many seemingly serious legal issues can often be properly resolved with professional intervention if they receive proper advice at an early stage, and may even create a win-win situation. However, a lack of appropriate legal guidance can lead to a worsening situation, ultimately resulting in a lose-lose scenario.

In the rapidly developing and opportunity-filled field of Web3, compliance should not be seen as a constraint, but rather as a shield that protects innovation and long-term development. Through proactive compliance management, Web3 entrepreneurs can better focus on innovation and business development, contributing to the healthy development of the industry.