According to the Procuratorate Daily, researchers from the Yuhu District People's Procuratorate in Xiangtan City, Hunan Province, and the Law School of Xiangtan University jointly wrote an article proposing the difficulties and response plans for the characterization, evidence collection, and recovery of virtual currency money laundering crimes. The article points out that judicial practice faces three challenges: the limitation of upstream crimes in money laundering, the fragmentation of evidence chains caused by technological means, legal attribute conflicts, and cross-border cooperation barriers. It is recommended to address these challenges through judicial transformation, the establishment of electronic evidence review standards, and the construction of cross departmental collaborative disposal mechanisms.