Compliance Issues That Web3 Entrepreneurs Need to Watch Out For

Recently, a dispute between a well-known project founder, Zhang, and Wang has attracted widespread attention. This dispute has escalated from a commercial disagreement to a criminal case, sparking discussions about legal risks in the Web3 industry. As a lawyer specializing in criminal cases in the Web3 field, although I cannot access the specific case files of Zhang, I hope to share some insights on compliance issues that Web3 entrepreneurs should pay attention to based on my years of experience.

I. Case Overview

According to public reports, a well-known gaming platform has sparked controversy due to a business dispute between partners. On February 12, 2025, Zhang was arrested by the police in Hangzhou on suspicion of "illegally obtaining data from computer information systems." Subsequently, Zhang was taken to Shanghai for further investigation. It is worth noting that Wang's side does not recognize Zhang's partner status.

According to media reports, Team Zhang believes that they are project partners, while Wang denies this point. After the negotiation between the two parties failed, the team led by Zhang removed the data account permissions of the software owner in November 2024, which may be the direct cause of the incident.

2. Analysis of Relevant Crimes

The crime of "illegally obtaining data from computer information systems" is a serious charge. According to our criminal law, this crime mainly targets unauthorized intrusion into computer systems or the use of other technical means to obtain system data or implement illegal control.

This crime is divided into two sentencing levels: for serious circumstances, a sentence of up to three years of fixed-term imprisonment or detention may be imposed, along with a fine or solely a fine; for particularly serious circumstances, a sentence of more than three years but less than seven years of fixed-term imprisonment may be imposed, along with a fine.

The criteria for determining "serious circumstances" include:

1. Obtain identity authentication information for specific network financial services in more than ten sets.
2. Obtain more than 500 sets of other identity authentication information
3. Illegal gains of over 5000 yuan or economic losses of over 10,000 yuan
4. Other serious circumstances

"The situation is particularly serious" is more than five times the above standard.

3. Compliance Suggestions for Web3 Entrepreneurship

In the Web3 industry, disputes among partners frequently occur due to the lack of clear equity arrangements during the startup phase. Once a project generates significant profits, issues related to profit distribution often lead to controversies, and can even escalate into criminal cases.

Common criminal charges include embezzlement and tax-related crimes. With the increase of Web3 companies, some computer-related crimes have also begun to appear in shareholder disputes, which is a new characteristic of criminal risks in the Web3 industry.

To avoid similar risks, Web3 entrepreneurs should:

1. Emphasize pre-Compliance and improve all necessary legal documents.
2. Hire professional lawyers to draft or review legal documents, rather than relying solely on online templates.
3. Consider and prevent commercial and criminal legal risks as early as possible.

It is recommended that every Web3 startup team hire professional legal advisors, especially Web3 lawyers who are proficient in criminal defense. Many legal risks can be avoided in the early stages, and it may even create a win-win situation. However, without the involvement and guidance of professional lawyers, it often leads to a worsening situation, ultimately resulting in a lose-lose predicament.

In conclusion, Web3 entrepreneurs should enhance their legal awareness, focus on compliance, to ensure the healthy development of their businesses and avoid unnecessary legal disputes.