Sorry, couldn't resist to offer this thinking-out-of-the-box solution...
Topic: Cashing Out Thousands of Bitcoin (Read 485 times)
Call Michael Saylor! He will gladly buy your Bitcoins and offer you a good price, no hassles. You should then also be able to make some arrangement with your bank that you'll receive a big amount of money from MicroStrategy's house bank, probably less suspicious for your bank. Take my proposal with a big pinch of salt. Tax issues not covered. In my country I can sell any amount of crypto tax-free after hodling it for more than a year. Maybe we should find some gentlemen's agreement? Sorry, couldn't resist to offer this thinking-out-of-the-box solution...
Sorry, couldn't resist to offer this thinking-out-of-the-box solution...
I don't want to cash it all out at once or gradually. That was a stupid act because the bank or anything related to the government would be able to find out that there were large transactions in my account. I prefer to cash out like I do every month and keep the rest in my digital wallet.
I don't know where you live but probably you are supposed to declare every single cash out you make, unless we are talking about $100/month. If your bank has any suspect about that money they can flag you even for very small transactions because for them it's always better to flag rather than not do it, so be careful. If you declare everything then of course you're totally fine. 
I don't want to cash it all out at once or gradually. That was a stupid act because the bank or anything related to the government would be able to find out that there were large transactions in my account. I prefer to cash out like I do every month and keep the rest in my digital wallet. Moreover, if there is no immediate need that requires me to spend a lot of money, I don't need to, and it's better to keep it in a digital wallet.
And if I want to buy something, say a new house, I will find out first how much it costs, what the payment system is and so on, then I can think of a way to cash out my Bitcoin and pay for the new house. If no need requires me to spend more money, I will not make large withdrawals. It is better to stay at the bottom and live on just what is necessary than to withdraw large amounts of money. I don't want to be the center of attention from the bank.
But it all depends on the circumstances because there are times when we need more money in a month. But that amount of money will not be as much as if we wanted to buy a penthouse. So it won't attract the attention of anyone.
And if I want to buy something, say a new house, I will find out first how much it costs, what the payment system is and so on, then I can think of a way to cash out my Bitcoin and pay for the new house. If no need requires me to spend more money, I will not make large withdrawals. It is better to stay at the bottom and live on just what is necessary than to withdraw large amounts of money. I don't want to be the center of attention from the bank.
But it all depends on the circumstances because there are times when we need more money in a month. But that amount of money will not be as much as if we wanted to buy a penthouse. So it won't attract the attention of anyone.
To your point about moving to another country: This would be very problematic on multiple levels for me, one of which is that, thanks to the Communist, Obama, who managed to ram FACTA into law, it's very difficult for an American to open a bank account overseas, let alone deposit millions of dollars into one.
If you're an American and you want to move abroad to avoid paying a lot of money in taxes then you should buy a second citizenship, like St Kitts & Nevis, St Lucia, etc, and then renounce to the American citizenship. It's a very big step and it would be worth only if you could actually save a lot of money in taxes because just buying a second citizenship easily costs $150-250k depending on the country. There are also countries like Portugal that have a special investment program called Golden Visa (I think) but you need to wait 5 years before being able to apply for the citizenship so if you're in a hurry or let's say you want to sell everything during the next bull run you can't wait that much. ~snip~
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
Then why the question at all?
Curiosity. Also, I own a good portfolio of cryptocurrencies that may be worth a lot more in the future. I seriously doubt it will reach 130 million, but even if it reaches a fraction of that, it's good to know how to liquidate some of it.
What makes you so sure that your crypto portfolio will be worth a lot in the future? you say you don't own bitcoin, which means you hold altcoins, LOL. even if it is bitcoin, there is no guarantee that it will bring you big profits, let alone if your portfolio is full of shitcoins. you even risk not receiving any of your profits or capital, don't think about up to 130 million or just 1/10 of that amount. We need to be realistic in investing, don't be too delusional about profits, especially with shitcoin.
Also, I own sizeable positions in Bitcoin, Ethereum, XRP, Stellar, Litecoin, Dogecoin, Veechain, Cardano, Monero, Neo, and smaller positions of several others.
How would you go about cashing out very large sums of Bitcoin, or other cryptocurrency?
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
If you don't have that many bitcoins, then why ask such questions?A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
Why immediately legalize 100,000,000?
There are many jurisdictions in the world where you can legalize bitcoins and earn small taxes, but this will be done in stages so as not to attract the attention of the tax authorities. But sometimes it is better to resolve the issue of citizenship and tax residence first.
[moderator's note: consecutive posts merged]
~snip~
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
Then why the question at all?
Curiosity. Also, I own a good portfolio of cryptocurrencies that may be worth a lot more in the future. I seriously doubt it will reach 130 million, but even if it reaches a fraction of that, it's good to know how to liquidate some of it.
What makes you so sure that your crypto portfolio will be worth a lot in the future? you say you don't own bitcoin, which means you hold altcoins, LOL. even if it is bitcoin, there is no guarantee that it will bring you big profits, let alone if your portfolio is full of shitcoins. you even risk not receiving any of your profits or capital, don't think about up to 130 million or just 1/10 of that amount. We need to be realistic in investing, don't be too delusional about profits, especially with shitcoin.
You don't want SWAT team breaking down your door on you while you have some good looking bae with you enjoying some movies together, don't withdraw all your money from Bitcoin into your bank account, the next thing that will come to mind is you are into fraud and you will be taken in for questioning.
Even whales don't do this, they only move money into their bank account when they need it, and they will not move millions that could raise some suspicion, I won't dare move more than $20,000 into my bank account, that's if I ever need that much money instantly, anything more than this will raise some suspicion over my account and I could be on watch.
If you have something you want to build that will cost a lot of money, intentionally slow it down, build it with time, and do not prove you have all the money in the world by doing it instantly, you are endangering your safety too, off the bank record, they have your home address and they know how much you have in the bank.
I do not think that SWAT team would knock down your door. First of all if you are not in the USA then you are not going to get SWAT team breaking down your door to begin with, that's just an internet meme that people does but not the reality, they only do that in the USA and only after getting clearance as well, not like they can do it in a second, they do not have SWAT teams all around the nation ready to knock down doors in a moments notice.Even whales don't do this, they only move money into their bank account when they need it, and they will not move millions that could raise some suspicion, I won't dare move more than $20,000 into my bank account, that's if I ever need that much money instantly, anything more than this will raise some suspicion over my account and I could be on watch.
If you have something you want to build that will cost a lot of money, intentionally slow it down, build it with time, and do not prove you have all the money in the world by doing it instantly, you are endangering your safety too, off the bank record, they have your home address and they know how much you have in the bank.
But, it is even harder if you are in another nation because in that case CIA is the only one that could handle it, FBI looks within, CIA looks outside, and even CIA would just take notice and note you down but do nothing right now. So you can only care about your own government.
How would you go about cashing out very large sums of Bitcoin, or other cryptocurrency?
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
If you don't have that many bitcoins, then why ask such questions?A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
Why immediately legalize 100,000,000?
There are many jurisdictions in the world where you can legalize bitcoins and earn small taxes, but this will be done in stages so as not to attract the attention of the tax authorities. But sometimes it is better to resolve the issue of citizenship and tax residence first.
Curiosity. Also, I own a good portfolio of cryptocurrencies that may be worth a lot more in the future. I seriously doubt it will reach 130 million, but even if it reaches a fraction of that, it's good to know how to liquidate some of it.
If you are referring to altcoins, then you should know that their value only goes down with time in most cases, and most of them even fail completely. However, some will certainly be worth much more than they are worth today, but such an investment is actually in a way gambling - the only question is how much money you have that you are ready to throw into such a game.
As I already wrote, how to "spend" cryptocurrencies in one way or another is a much smaller problem for me, and you should focus more on how to prevent someone else from spending them instead of you, if you understand what I mean
I also recommend that you read the unofficial rules of the forum - especially rule 32.
You want to sell it and it's like you've got few options to do that. Although you can also check P2P for it, so that means like canvassing all potential markets and methods.
Nah, there is not enough liquidity when it comes to p2p platforms.you can also check P2P for it, so that means like canvassing all potential markets and methods.
What is P2P? I keep hearing this. I could do a Google search, but I'm lazy right now.
If I own that much, I'd probably register to as many exchanges as I can just to cash them out. But I'll do it with small amounts until I ran out of it if that's the plan to sell all of it.
But first, look if there's an OTC market where you can go. It's for sure going to ask you some important matters and will certainly ask for KYC. But do you have the choice?
You want to sell it and it's like you've got few options to do that. Although you can also check P2P for it, so that means like canvassing all potential markets and methods.
To avoid alert from the bank, don't do like a million a day or learn how much your bank allows not to flag you with your transactions.
There's no way that you could really be able to do bulks cashout when it comes to this knowing that there would really be tons will really be trying out to get a hold of you specially on verification and with some taxing issueBut first, look if there's an OTC market where you can go. It's for sure going to ask you some important matters and will certainly ask for KYC. But do you have the choice?
You want to sell it and it's like you've got few options to do that. Although you can also check P2P for it, so that means like canvassing all potential markets and methods.
To avoid alert from the bank, don't do like a million a day or learn how much your bank allows not to flag you with your transactions.
on which we know that they would really be that eager on trying out to get some big slice with the money you do have. Tending to go beyond with those maximum limits on which your bank account could hold?
Expect that bank would really be calling you out on this regard or even just simply transferring those 5k coins on an exchange would definitely be raising up with those concerns. So the best thing to be done
in correlated to this is to cash out on gradual manner and it would not really be creating that kind of problem but of course it might take for sometime but actually i could really be able to handle out such hassle
as long i do keep on cashing it out. How i wish that i do have this kind of problem,eh?
But you're right about that the bank will certain take notice of it when you do that often times. The right strategy is to do it gradually just as you've said.
I wonder how many from the forum members did really experienced this kind of a not so problematic - problem.
If we are talking about just "guesses" and situation that is not even real, I would say cash out by the 100? If you had 5000 bitcoins, you would tell that to a banker, and they would forward you to their manager and that person to his manager etc etc. No banker would be stupid enough to just accept it themselves, they would be in big trouble if you deposited that money and didn't use a higher up in ranks, that person would all likely be fired as well. But if they forward you to highest that cares (obviously not the CEO, probably branch manager of that bank store) then I would guess that its going to be possible for you to end up with a great help, you will use whatever, could be coinbase, and then slowly take that money out one by one, and they will store your money in the bank carefully.
First why you need to cash out the huge amount of dollar from the bitcoin,bitcoin is the treasure which give you huge gift anytime.To get the treasure,the most important thing is you need to hold all the bitcoin from your earning.Because we all know it’s hard to buy the huge amount of the bitcoin.If you are doing the real job,it’s good option to do the saving of the bitcoin in your wallet.Because after the month you can earn the income from the regular job.It’s better option to hold all your saving in the bitcoin.
Sometimes we need to be ready for few things in real life even I personally also not in favour of doing things like these like sell my all portfolio into one time because this can create mess-up for me with I can't hold this big amount and if I try to have this in my bank then surely I have to give them proof of earning and many other details which are not right.Just because of this all need to stay calm and do this all in instalments or doing from different places is also good even these all are just views in reality have no heart to cashout this all and live in fear of theft or many other things which can happen to me or family after owing this huge amount of money because if I will keep this in bitcoin then I am secure and surely living freely without any problem.
They are worth 130 million. You have zero need to hide your wealth from the government assuming it is a quasi legit country..
135 to be exact
Quote
Mixing and hiding shit at these levels do not make sense.
Quote
Just keep cashing at a steady pace and buy bonds and some stocks. Also you need legal advice at this kind level.
Sell your bitcoin so your government can tax you and then give them a loan by buying their bonds. That's the last thing I'd do. Let's speculate for a while.
I have 135m and I really hate bitcoin and want to spend all my coins.
First thing, I'd move to a country with no bitcoin tax like El Salvador or Germany.
Then I'd try to look for companies that would take my money directly and try to get expensive real estate, maybe buy a hotel, or invest in one. I'd put money in local businesses like restaurants, pubs, buy a part of the beach, or some other local attraction, like a ski resort, or a lake. I wouldn't turn my coins into fiat, that's just dumb. Fiat is inflationary and taxable and requires a third party custodian.
I might open a few bank accounts and put a million on each, just as a backup but most of my wealth would be in physical form.
First why you need to cash out the huge amount of dollar from the bitcoin,bitcoin is the treasure which give you huge gift anytime.To get the treasure,the most important thing is you need to hold all the bitcoin from your earning.Because we all know it’s hard to buy the huge amount of the bitcoin.If you are doing the real job,it’s good option to do the saving of the bitcoin in your wallet.Because after the month you can earn the income from the regular job.It’s better option to hold all your saving in the bitcoin.
If I own that much, I'd probably register to as many exchanges as I can just to cash them out. But I'll do it with small amounts until I ran out of it if that's the plan to sell all of it.
But first, look if there's an OTC market where you can go. It's for sure going to ask you some important matters and will certainly ask for KYC. But do you have the choice?
You want to sell it and it's like you've got few options to do that. Although you can also check P2P for it, so that means like canvassing all potential markets and methods.
To avoid alert from the bank, don't do like a million a day or learn how much your bank allows not to flag you with your transactions.
There's no way that you could really be able to do bulks cashout when it comes to this knowing that there would really be tons will really be trying out to get a hold of you specially on verification and with some taxing issueBut first, look if there's an OTC market where you can go. It's for sure going to ask you some important matters and will certainly ask for KYC. But do you have the choice?
You want to sell it and it's like you've got few options to do that. Although you can also check P2P for it, so that means like canvassing all potential markets and methods.
To avoid alert from the bank, don't do like a million a day or learn how much your bank allows not to flag you with your transactions.
on which we know that they would really be that eager on trying out to get some big slice with the money you do have. Tending to go beyond with those maximum limits on which your bank account could hold?
Expect that bank would really be calling you out on this regard or even just simply transferring those 5k coins on an exchange would definitely be raising up with those concerns. So the best thing to be done
in correlated to this is to cash out on gradual manner and it would not really be creating that kind of problem but of course it might take for sometime but actually i could really be able to handle out such hassle
as long i do keep on cashing it out. How i wish that i do have this kind of problem,eh?
Why would you want to sell everything right now? If I had that much money I'd first think of something that I need. I'd run out of ideas after 10 m probably.
What would you do with that much fiat money? Why would you want to keel that kind of money in an inflationary currency.
I can tell you what I'd do with 100 m in bitcoin.
Sell 1m right now to start spending on the things I need. Keep 99m in bitcoin for as long as I can.
Quote
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
Yes, the IRS is notified even if you transfer 100k USD to a bank account. Above a certain amount bank has to send reports and in the EU it's probably something like 20k EUR, but I might be wrong since they're sometimes changing it.
Accounts don't get frozen just like that, but the bank would probably contact you to ask about it.
~snip~
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
Then why the question at all?
Curiosity. Also, I own a good portfolio of cryptocurrencies that may be worth a lot more in the future. I seriously doubt it will reach 130 million, but even if it reaches a fraction of that, it's good to know how to liquidate some of it.
The only way I can do this is with the help of financial mentors or attorneys. They know how to bend the laws to minimize your tax.
It may be worth moving to a different country, or set up some shell company to avoid taxes. That's what rich people do, right? Paying taxes is for poor people. What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
This is the problem that I want. Of course, the IRS would be immediately notified. But firstly I wouldn't withdraw it at once to avoid this problem. And this could put you in danger since they know you once you put it in your bank. So what if you need the money badly as soon as possible? The only way I can do this is with the help of financial mentors or attorneys. They know how to bend the laws to minimize your tax.
I believe every country has a reasonable threshold for a balanced account to avoid arousing suspicion from local financial regulatory bodies. Banks may inquire about your occupation and estimate your income, but if the assets disclosed exceed $10 million, I believe it would draw the attention of the IRS.
Gradual withdrawals are a simpler way to steer clear of scrutiny. If you're earning your money legitimately, I think you should be able to explain it well, and there shouldn't be any grounds for legal repercussions during an audit.
Gradual withdrawals are a simpler way to steer clear of scrutiny. If you're earning your money legitimately, I think you should be able to explain it well, and there shouldn't be any grounds for legal repercussions during an audit.
If you have 5000 coins from 2011 you may have spent only 5000 to get them.
If you held them till now and want safer investments you almost certainly can prove how you got them back in 2011.
They are worth 130 million. You have zero need to hide your wealth from the government assuming it is a quasi legit country..
Mixing and hiding shit at these levels do not make sense.
Just keep cashing at a steady pace and buy bonds and some stocks. Also you need legal advice at this kind level.
As there is now way that you can withdraw that amount of money without raising red flags regardless of the country in which you are living, also it does not make too much sense to sell all of those coins and then think about what to do with that money when it is already invested in bitcoin, so at most I would try to withdraw 10% of that amount with the precautions I mention above in a process that most likely will take months, as going from earning a small amount of money to a fortune will without a doubt bring a lot of attention to yourself, and you will have to be ready to explain the source of those funds over and over again.
One of the reasons I would cash out that amount of Bitcoin would be to 'rebalance' my investment portfolio and mitigate risk, even though this would cause a taxable event, and would be a high price to pay. Also, Bitcoin is not cash. It's hard to buy things with Bitocin directly as opposed to cash. That's why I would want most of my assets in stocks, bonds and cash.
Why would anyone want to cash out that much money? What kind of purpose can that be used for?
To rebalance my investment portfolio in order to mitigate risk (invest the proceeds into stocks and bonds in my brokerage accounts), and to have that money in the 'system', which I can readily liquidate to make purchases as needed.I can't really imagine a situation like that, but I think that such a huge amount of money calls for an OTC deal. Just after googling a bit, I can see that some major companies, including Coinbase, have OTC desks for big cashouts, so I would probably contact one of those, learn how these things work and do it like that. This way I wouldn't negatively impact the market, I wouldn't have to wait forever for my deal to be done, and I'd establish useful professional connections, I guess.
I've heard OTC desks mentioned a lot. Must be how the rich liquidate their cryptocurrency holdings. 5000 bitcoins, or $100 million dollars is sure alot of money, but I personally do not see any reason why such a huge amount of money must be withdrawn ones, to avoid problems, I personally would advice the any individual with such amount of money to withdraw, dived the withdrawal into several thousands of dollars, the person could withdraw $50,000 every week until the entire $100 million dollars is completely withdrawn..
The above approach will also help make sure that the sell off does not have much negatively impact on the market in general, but even if it does, this is still not as important as withdrawing the money to your private bank account, weekly withdrawal of $50,000 will ensure that you do not end up in some problems with regulatory bodies.
In NYS, that's called "structuring", which is a punishable offense. The above approach will also help make sure that the sell off does not have much negatively impact on the market in general, but even if it does, this is still not as important as withdrawing the money to your private bank account, weekly withdrawal of $50,000 will ensure that you do not end up in some problems with regulatory bodies.
You've said it yourself that according to FDIC insurance, an account can only hold $250k, so what do you think will happen when someone who's account balance is $3k, sudden receives $250k in four hundred different accounts? Your account would be frozen and you would be called upon by the authorites to explain the source of your wealth.
And, once I showed them that I purchased Bitcoin, or other cryptocurrency, for X amount of dollars on X date(s), would that be the end of it? Would the account be unfrozen and my transactions immediately allowed to go through? ~snip~
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
Then why the question at all? Every country has its own laws, so if you acquired that Bitcoin in a legal way, then you don't have to worry about anything, including taxes, banks or exchange offices.
In case I have such a large amount of BTC, I would never sell it in a way to cause a lot of attention, but I would do it in a way to try to negotiate the sale with to some of the CEXs that I would then visit in person and sell through their OTC. Before that, I would open bank accounts in some reputable banks in Switzerland, where I would also rent safes and store some of the cash in them.
In fact, there are countless possibilities and it is true that it is not a problem to sell that much BTC even if you don't want to go directly through CEX, but for most it will never be a "problem" because they will not even have 10 BTC, let alone the thousands that we are talking about hypothetically here.
Besides, why sell everything when there are so many ways to use Bitcoin as a currency around the world - booking hotels, buying plane tickets, paying in restaurants and on thousands of online sites that sell various goods and services.
You don't want SWAT team breaking down your door on you while you have some good looking bae with you enjoying some movies together, don't withdraw all your money from Bitcoin into your bank account, the next thing that will come to mind is you are into fraud and you will be taken in for questioning.
Even whales don't do this, they only move money into their bank account when they need it, and they will not move millions that could raise some suspicion, I won't dare move more than $20,000 into my bank account, that's if I ever need that much money instantly, anything more than this will raise some suspicion over my account and I could be on watch.
If you have something you want to build that will cost a lot of money, intentionally slow it down, build it with time, and do not prove you have all the money in the world by doing it instantly, you are endangering your safety too, off the bank record, they have your home address and they know how much you have in the bank.
Even whales don't do this, they only move money into their bank account when they need it, and they will not move millions that could raise some suspicion, I won't dare move more than $20,000 into my bank account, that's if I ever need that much money instantly, anything more than this will raise some suspicion over my account and I could be on watch.
If you have something you want to build that will cost a lot of money, intentionally slow it down, build it with time, and do not prove you have all the money in the world by doing it instantly, you are endangering your safety too, off the bank record, they have your home address and they know how much you have in the bank.
In actuality, such a huge sum cannot be casually released. Perhaps using several exchanges will be required if I have such substantial assets; in that case, I would just have a daily release cap. To be completely honest, if I spend that much, it will probably take a few months.
Because there is a restriction on the withdrawal in the local wallet where I transfer money from cryptocurrencies in our nation, our local wallet may naturally ask me here since I withdraw over P2P every day.
Because there is a restriction on the withdrawal in the local wallet where I transfer money from cryptocurrencies in our nation, our local wallet may naturally ask me here since I withdraw over P2P every day.
How would you go about cashing out very large sums of Bitcoin, or other cryptocurrency?
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
That is actually a very good question. A couple of years ago, I'd say the exchange won't be feasible at all, considering the fact liquidity was most likely insufficient for something like this. Today tho, my best guess would be trying to establish some sort of connection with a more powerful bank, and get a more favorable deal based on mutual consideration. Who knows, maybe someone would go for it hahahah
How would you go about cashing out very large sums of Bitcoin, or other cryptocurrency?
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
To be honest, none of us has ever owned or currently owns such a large amount of money, so answering this question is really not easy. I also agree with everyone's solutions such as splitting the withdrawal amount even though it will take a lot of time, or using a company account...But it's all just our thoughts and none of us have any experience with it. Therefore, it is difficult to know the effectiveness of these solutions.
In my opinion, we should focus on accumulating bitcoins now, and if we have the opportunity to own a large amount of bitcoins in the future, we will definitely have a solution for that.
The Banks already flag transactions at a much lower amount (I think something like $10 000) .. so the Tax authorities will know, even if you do this with small amounts. 
I'll remind people again: you want the tax man to know about it, so you can pay your taxes and enjoy your money. What are you going to do with $100M black money? You're much better off with $50M in money that you can spend to buy items legally.
I would not even consider converting that amount of coins in one transaction. I would open several accounts at different Crypto currency exchanges and then transfer some coins to all of them. I will then convert smaller amounts and deposit it into several different Bank accounts that are linked to those exchanges.
The Banks already flag transactions at a much lower amount (I think something like $10 000) .. so the Tax authorities will know, even if you do this with small amounts.
The Banks already flag transactions at a much lower amount (I think something like $10 000) .. so the Tax authorities will know, even if you do this with small amounts.
legendary
Activity: 2422
Merit: 1083
Leading Crypto Sports Betting & Casino Platform
5000 bitcoins, or $100 million dollars is sure alot of money, but I personally do not see any reason why such a huge amount of money must be withdrawn ones, to avoid problems, I personally would advice the any individual with such amount of money to withdraw, dived the withdrawal into several thousands of dollars, the person could withdraw $50,000 every week until the entire $100 million dollars is completely withdrawn..
The above approach will also help make sure that the sell off does not have much negatively impact on the market in general, but even if it does, this is still not as important as withdrawing the money to your private bank account, weekly withdrawal of $50,000 will ensure that you do not end up in some problems with regulatory bodies.
The above approach will also help make sure that the sell off does not have much negatively impact on the market in general, but even if it does, this is still not as important as withdrawing the money to your private bank account, weekly withdrawal of $50,000 will ensure that you do not end up in some problems with regulatory bodies.
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
It's very simple to do, just know that you don't have to necessarily move the whole money at once, you can do it instalmentally and also if you're exchanging them with an exchange, then try to avoid the same bulkiness of sending or withdrawal at ones, you can also make use of a decentralized no kyc exchange and make use of the p2p network, there's whale alert system that also notifies of any giant move of currency, so in every decision you will be taking, don't just make it suspicious by making huge transaction that could be alarming.
That amount might be questionable to any exchanges if you're just a new user. So the best thing to do is to withdraw a couple amount gradually and use Bitcoin mixer to make sure that your address is clean and not connected to any suspicious address.
That's the dumbest thing you can do! If you have old Bitcoins you can easily prove your wealth came from capital gains. Depending on the tax system you either pay your taxes when you sell them, or you should have paid annually (like where I live). And that's the reason to report your holdings to taxes: if there's a paper trail, you can cash them out without worrying about the IRS. All you have to do is pay, and keep the rest. 
Why would anyone want to cash out that much money? What kind of purpose can that be used for?
I can't really imagine a situation like that, but I think that such a huge amount of money calls for an OTC deal. Just after googling a bit, I can see that some major companies, including Coinbase, have OTC desks for big cashouts, so I would probably contact one of those, learn how these things work and do it like that. This way I wouldn't negatively impact the market, I wouldn't have to wait forever for my deal to be done, and I'd establish useful professional connections, I guess.
Needless to say, I'm sure I'd have to pay a sell tax on that money, which I should, considering how much I own in that hypothetical situation.
I can't really imagine a situation like that, but I think that such a huge amount of money calls for an OTC deal. Just after googling a bit, I can see that some major companies, including Coinbase, have OTC desks for big cashouts, so I would probably contact one of those, learn how these things work and do it like that. This way I wouldn't negatively impact the market, I wouldn't have to wait forever for my deal to be done, and I'd establish useful professional connections, I guess.
Needless to say, I'm sure I'd have to pay a sell tax on that money, which I should, considering how much I own in that hypothetical situation.
As a bitcoin holder or a trader knowing too well that you bank can't accommodate such huge amount of money what you would use is a company account or you can trade it gradually to cash out the amount you mentioned, the only is that it could cost you time to finally trade all out to fiat but sometimes company account and business account can get all amount accommodated judging from my country the way our banking system are being operated. For personal account there are some sets of restrictions that has been set either to withdraw only #500k per week and max deposit of $5m
So for some countries it surely depends on their account restrictions and limitations otherwise, cashing out $200k per day or per week would be ideal to withdraw out a total sum of $130m or maybe you can get a company account to withdraw it out.
Quote from: https://www.premiumtimesng.com/news/569299-just-in-cbn-limits-cash-withdrawals-to-n100000-weekly.html?tztc=1
The CBN said in compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits would be required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.
So for some countries it surely depends on their account restrictions and limitations otherwise, cashing out $200k per day or per week would be ideal to withdraw out a total sum of $130m or maybe you can get a company account to withdraw it out.
I believe every country has a reasonable threshold for a balanced account to avoid arousing suspicion from local financial regulatory bodies. Banks may inquire about your occupation and estimate your income, but if the assets disclosed exceed $10 million, I believe it would draw the attention of the IRS.
Gradual withdrawals are a simpler way to steer clear of scrutiny. If you're earning your money legitimately, I think you should be able to explain it well, and there shouldn't be any grounds for legal repercussions during an audit.
I don't care about the IRS knowing about my transaction. I can pay my taxes at the end of the year. I just want my transaction to go through and ultimately settle into my brokerage account(s).Gradual withdrawals are a simpler way to steer clear of scrutiny. If you're earning your money legitimately, I think you should be able to explain it well, and there shouldn't be any grounds for legal repercussions during an audit.
Well, in that case one of the best option you can do is to get it OTCd in any banks that accepts bitcoin or any crypto exchange if you want to cash it out all at once, just to make sure your account is gonna be safe from being froze.
There's almost no way you can have it all cashed out using online transactions, or using the most basic trading in any exchange or any bank transfer for that huge amount of money.
IRS plus some transaction fees, I'm not sure how much is gonna be left after all those are taken out. So, you're not getting the whole $100m.
How would you go about cashing out very large sums of Bitcoin, or other cryptocurrency?
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
I think this is the wrong way to go about this, this kind of move is huge no matter where you are, so you will have to talk to expert lawyers to create a strategy that allows you to cash out that money without issues and to pay the smallest tax possible.A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
As there is now way that you can withdraw that amount of money without raising red flags regardless of the country in which you are living, also it does not make too much sense to sell all of those coins and then think about what to do with that money when it is already invested in bitcoin, so at most I would try to withdraw 10% of that amount with the precautions I mention above in a process that most likely will take months, as going from earning a small amount of money to a fortune will without a doubt bring a lot of attention to yourself, and you will have to be ready to explain the source of those funds over and over again.
legendary
Activity: 1358
Merit: 1565
The first decentralized crypto betting platform
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
I would never let that happen to me, nor do I think anyone else would. Nobody has $5,000 and waits until it becomes $130,000,000 without cashing out anything first. The normal thing is to cash out little by little as the ball gets bigger and bigger. But even if you had partially withdrawn along the way and ended up with a huge sum anyway, or even in the scenario you pose, you are foolish if you plan to do it on your own or with advice from a forum.
<...> you need legal advice at this kind level.
I believe every country has a reasonable threshold for a balanced account to avoid arousing suspicion from local financial regulatory bodies. Banks may inquire about your occupation and estimate your income, but if the assets disclosed exceed $10 million, I believe it would draw the attention of the IRS.
Gradual withdrawals are a simpler way to steer clear of scrutiny. If you're earning your money legitimately, I think you should be able to explain it well, and there shouldn't be any grounds for legal repercussions during an audit.
Gradual withdrawals are a simpler way to steer clear of scrutiny. If you're earning your money legitimately, I think you should be able to explain it well, and there shouldn't be any grounds for legal repercussions during an audit.
If you have 5000 coins from 2011 you may have spent only 5000 to get them.
If you held them till now and want safer investments you almost certainly can prove how you got them back in 2011.
They are worth 130 million. You have zero need to hide your wealth from the government assuming it is a quasi legit country..
Mixing and hiding shit at these levels do not make sense.
Just keep cashing at a steady pace and buy bonds and some stocks. Also you need legal advice at this kind level.
How would you go about cashing out very large sums of Bitcoin, or other cryptocurrency?
If I had $130,000,000 worth of assets seating in my wallet, I would not cash out all of it to fiat to avoid attracting unnecessary attention to myself. I would leave most of it in crypto and only convert 1% of it to fiat. Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
I think there's a limit to the amount of money your account can receive from exchange but this may vary in different countries. In Nigeria, the maximum amount you can receive in a day on Binance exchange is N18 Million and you must be an active trader. FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it?
You've said it yourself that according to FDIC insurance, an account can only hold $250k, so what do you think will happen when someone who's account balance is $3k, sudden receives $250k in four hundred different accounts? Your account would be frozen and you would be called upon by the authorites to explain the source of your wealth.I believe every country has a reasonable threshold for a balanced account to avoid arousing suspicion from local financial regulatory bodies. Banks may inquire about your occupation and estimate your income, but if the assets disclosed exceed $10 million, I believe it would draw the attention of the IRS.
Gradual withdrawals are a simpler way to steer clear of scrutiny. If you're earning your money legitimately, I think you should be able to explain it well, and there shouldn't be any grounds for legal repercussions during an audit.
I don't care about the IRS knowing about my transaction. I can pay my taxes at the end of the year. I just want my transaction to go through and ultimately settle into my brokerage account(s). Gradual withdrawals are a simpler way to steer clear of scrutiny. If you're earning your money legitimately, I think you should be able to explain it well, and there shouldn't be any grounds for legal repercussions during an audit.
I believe every country has a reasonable threshold for a balanced account to avoid arousing suspicion from local financial regulatory bodies. Banks may inquire about your occupation and estimate your income, but if the assets disclosed exceed $10 million, I believe it would draw the attention of the IRS.
Gradual withdrawals are a simpler way to steer clear of scrutiny. If you're earning your money legitimately, I think you should be able to explain it well, and there shouldn't be any grounds for legal repercussions during an audit.
Gradual withdrawals are a simpler way to steer clear of scrutiny. If you're earning your money legitimately, I think you should be able to explain it well, and there shouldn't be any grounds for legal repercussions during an audit.
I don't think there will be a centralized exchange that can give you convenience. They will surely take a closer look. Such transaction does not happen all the time, and since you're just an individual user and not a known institution, you'll probably have to produce certain documents. That's not going to be convenient at all. These are regulated platforms that are compliant with the policies on AML, CFT, and others.
I don't know how the ultra-wealthy do it, but for an ordinary Bitcoin pleb who only happened to buy Bitcoin at a much earlier time, it's surely not easy at all. Having banks and other traditional financial institutions involved would certainly give more headache.
If I'm in this situation, I'd rather not cash out a huge amount at once. I don't care if it takes me decades to cash out everything, but I guess that's the smoothest way for me.
I don't know how the ultra-wealthy do it, but for an ordinary Bitcoin pleb who only happened to buy Bitcoin at a much earlier time, it's surely not easy at all. Having banks and other traditional financial institutions involved would certainly give more headache.
If I'm in this situation, I'd rather not cash out a huge amount at once. I don't care if it takes me decades to cash out everything, but I guess that's the smoothest way for me.
The withdrawal amount is too big, I don't think there are banks or any local exchanges that can make you convert in one time with no worries.
That amount might be questionable to any exchanges if you're just a new user. So the best thing to do is to withdraw a couple amount gradually and use Bitcoin mixer to make sure that your address is clean and not connected to any suspicious address.
That amount might be questionable to any exchanges if you're just a new user. So the best thing to do is to withdraw a couple amount gradually and use Bitcoin mixer to make sure that your address is clean and not connected to any suspicious address.
What is a Bitcoin mixer?
Why would someone will cash out all their bitcoin on this current situation, or cashing out one time if that's what you mean. You don't need to cash it out once, when you can do it in multiple times which may give someone an advantage, maybe price will go up later on, then a little hold on if it decreases.
You mean to treat my Bitcoin like stocks and bonds, which are only liquidated as needed? I thought about that, but I would be more concerned about managing risk by transferring BTC into relatively safer assets. That's the only reason I would want to transfer such a large sum. 30m can stay in BTC for diversification.How would you go about cashing out very large sums of Bitcoin, or other cryptocurrency?
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
It is easy enough with multiple steps.
Assuming you are USA based and your cost was next to nothing.
Consult a tax lawyer and a tax accountant.
Move to a no tax state.
Step 1 Move some coin not much 3-5 coins to coinbase.
Step 2 sell the coin.
Step 3 move the 100k to a brokerage that sells fed bonds buy some. that is for you JJG
Step 4 Move some coin more say 6-10
Step 5 Sell the coin
Step 6 Move 200k to your brokerage buy some bonds.
Repeat over and over slowing increasing the moves.
Pay a shit ton of tax ahead of time.
Pay attention to your tax advisors.
That huge amount of money at the time you put it in a bank account will be frozen by the bank immediately subject to knowing why you have that money and also the tax on it. It is better to not cash it out one time but just cash it out gradually and into different accounts because it will not be easily identified by the banks. Another way is P2P but still not that much bitcoin as it is very huge.
you can also check P2P for it, so that means like canvassing all potential markets and methods.
What is P2P? I keep hearing this. I could do a Google search, but I'm lazy right now.
How would you go about cashing out very large sums of Bitcoin, or other cryptocurrency?
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
First of all I would move to a country with no capital gain taxes, that's the very first thing to do. Regarding the cash out, you need to talk with the bank first to make sure they are ok receiving big money coming from cryptos, some banks just don't like that and may even refuse the transaction and shut down your account. Other thing, if you really plan to sell 5k BTC at once probably you need to get in touch with the exchange and check how OTC sales work.A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
To your point about moving to another country: This would be very problematic on multiple levels for me, one of which is that, thanks to the Communist, Obama, who managed to ram FACTA into law, it's very difficult for an American to open a bank account overseas, let alone deposit millions of dollars into one.
How would you go about cashing out very large sums of Bitcoin, or other cryptocurrency?
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
First of all I would move to a country with no capital gain taxes, that's the very first thing to do. Regarding the cash out, you need to talk with the bank first to make sure they are ok receiving big money coming from cryptos, some banks just don't like that and may even refuse the transaction and shut down your account. Other thing, if you really plan to sell 5k BTC at once probably you need to get in touch with the exchange and check how OTC sales work. A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
1. I don't think they are available in my region. That being said, liquidating everything at once is impossible regardless of what exchange you use. The highest withdrawal amount that I can do at the moment is around $15k per day without submitting any documents. Probably higher if I want to get into trouble with the government.
2. Not sure how the ultra-wealthy do it, but if they live in my country there is no way they can cash out all at once as mentioned above. I doubt they want to sell them all at once in the first place.
3. That is likely even though my government tax agent is not as 'evil' as the IRS. I'm pretty sure most of wealthy users can get away after paying some tax and providing some documents though. The only way to avoid it is simply don't do it. You're just exposing yourself for no reason.
2. Not sure how the ultra-wealthy do it, but if they live in my country there is no way they can cash out all at once as mentioned above. I doubt they want to sell them all at once in the first place.
3. That is likely even though my government tax agent is not as 'evil' as the IRS. I'm pretty sure most of wealthy users can get away after paying some tax and providing some documents though. The only way to avoid it is simply don't do it. You're just exposing yourself for no reason.
This is going to be really tough, because when the transaction limits were seen high automatically there arises question on the transaction. With my bank I was investigated when my account started to handle transactions in thousands of dollars. Earlier I hadn't used to it. We can expect similar situation with majority of the banks. I'm not sure of it, but to convert the convert the black money into pure money corporate firms use shell companies registered and bring the money through them. Maybe starting such companies and investing on them and bringing it into account seems to be the better choice.
I wouldn't even be looking to evade taxes. I would just want to transfer my Bitcoin (ultimately) to my brokerage accounts, and invest in the portfolio that I hold now (90% stocks, 10% bonds). I will pay whatever tax I owe at the end of the year, with some cash that I would deposit directly into my bank accounts.
They can use Bitcoin OTC Markets. Whales and Bitcoin miners have their favorite market is OTC because with big capital, they don't want to create impacts on market price when they don't want to manipulate the market. With OTC trading, they can do their trade privately and without market price impacts.
Over the Counter (OTC) Cryptocurrency Trading - Explained in Details.
Crypto Traders Flock to OTC Markets as Exchange Liquidity Dries Up Amid Regulatory Clampdown.
Over the Counter (OTC) Cryptocurrency Trading - Explained in Details.
Crypto Traders Flock to OTC Markets as Exchange Liquidity Dries Up Amid Regulatory Clampdown.
honestly, i will avoid to do that. I think it will be better if I do it little by little. even trading volume in my local exchange is only 16 BTC, it seems that it is not so profitable if I do it at once. I really feel that government really push people to the interest based economy, if we have a lot of money which is not debt the government will push us to pay high rate of taxes. I think it will be better if I avoid something that will catch their attention
The wealthy bitcoin holders don't have any problem converting their funds to fiat. This is where p2p transaction comes to play. How would you use exchanges and banks with multiple limitations to run such transactions? Many bitcoin whales use their bitcoin to pay for houses and cars, without passing through any third party like the banks. No need keeping $100m in the bank, when it can stay safely in your wallet. If you need to purchase properties, paying directly with bitcoin is the best option. Then withdraw gradually the rest of the coin to your bank account for minor expenses. What matter is keeping your coin safe from being hacked. I won't encourage using bank, because of the stress; too many questions, like the source of the money. Whenever, I see huge transaction from bitcoin whales, there is always a story of the owner buying a Lamborghini or house with the coin. Agents or sellers of such properties can accept huge amount of bitcoin.
I think it depends on the country, if in my country, you won't find any real estate brokers accepting payments in bitcoin or cryptocurrency, or buying cars or houses...what they want to receive is cash or bank transfer.
Regarding cashing out large amounts of money from cryptocurrency, I think P2P trading is the best and that's what big investors in my country are doing. But in general, if the amount is too large, whether we use a bank or use P2P, there are potential risks. In that situation you should only withdraw money gradually and not withdraw money a few times.
How would you go about cashing out very large sums of Bitcoin, or other cryptocurrency?
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
It is easy enough with multiple steps.
Assuming you are USA based and your cost was next to nothing.
Consult a tax lawyer and a tax accountant.
Move to a no tax state.
Step 1 Move some coin not much 3-5 coins to coinbase.
Step 2 sell the coin.
Step 3 move the 100k to a brokerage that sells fed bonds buy some. that is for you JJG
Step 4 Move some coin more say 6-10
Step 5 Sell the coin
Step 6 Move 200k to your brokerage buy some bonds.
Repeat over and over slowing increasing the moves.
Pay a shit ton of tax ahead of time.
Pay attention to your tax advisors.
This is going to be really tough, because when the transaction limits were seen high automatically there arises question on the transaction. With my bank I was investigated when my account started to handle transactions in thousands of dollars. Earlier I hadn't used to it. We can expect similar situation with majority of the banks. I'm not sure of it, but to convert the convert the black money into pure money corporate firms use shell companies registered and bring the money through them. Maybe starting such companies and investing on them and bringing it into account seems to be the better choice.
The wealthy bitcoin holders don't have any problem converting their funds to fiat. This is where p2p transaction comes to play. How would you use exchanges and banks with multiple limitations to run such transactions? Many bitcoin whales use their bitcoin to pay for houses and cars, without passing through any third party like the banks. No need keeping $100m in the bank, when it can stay safely in your wallet. If you need to purchase properties, paying directly with bitcoin is the best option. Then withdraw gradually the rest of the coin to your bank account for minor expenses. What matter is keeping your coin safe from being hacked. I won't encourage using bank, because of the stress; too many questions, like the source of the money. Whenever, I see huge transaction from bitcoin whales, there is always a story of the owner buying a Lamborghini or house with the coin. Agents or sellers of such properties can accept huge amount of bitcoin.
Why would someone will cash out all their bitcoin on this current situation, or cashing out one time if that's what you mean. You don't need to cash it out once, when you can do it in multiple times which may give someone an advantage, maybe price will go up later on, then a little hold on if it decreases.
Would the IRS be immediately notified?
yes
Would your accounts get frozen? How do you avoid this?
If this transaction is not typical for your account, it will most likely be an instant freeze. But if your bank knows you're a billionaire Bitcoin holder, there shouldn't be problems. Large transactions take time to process, and your bank will definitely ask you about where those money came from.
How do you avoid this?
You can't just put 100M into the bank system without playing by the bank system's rules.
How about withdrawing it periodically and not just at once? That's what I would certainly do. Probably create a bunch of multiple accounts in different exchanges and banks with the help of my family and the drain up the stash with time.
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
IRS is as US problem. There is a whole world out there You want to sell it and it's like you've got few options to do that. Although you can also check P2P for it, so that means like canvassing all potential markets and methods.
Nah, there is not enough liquidity when it comes to p2p platforms.
If I own that much, I'd probably register to as many exchanges as I can just to cash them out. But I'll do it with small amounts until I ran out of it if that's the plan to sell all of it.
But first, look if there's an OTC market where you can go. It's for sure going to ask you some important matters and will certainly ask for KYC. But do you have the choice?
You want to sell it and it's like you've got few options to do that. Although you can also check P2P for it, so that means like canvassing all potential markets and methods.
To avoid alert from the bank, don't do like a million a day or learn how much your bank allows not to flag you with your transactions.
But first, look if there's an OTC market where you can go. It's for sure going to ask you some important matters and will certainly ask for KYC. But do you have the choice?
You want to sell it and it's like you've got few options to do that. Although you can also check P2P for it, so that means like canvassing all potential markets and methods.
To avoid alert from the bank, don't do like a million a day or learn how much your bank allows not to flag you with your transactions.
First off, the moment you cashed out 100 million bucks it's not going to be 100 million dollars anymore, that's a massive a mount of money that would sway the hearts of the holders in this industry, there's no doubt people will see that and think it's the end of the world lol. Plus there's no bank nor financial institution out there that would want to facilitate your transfer or saving, that's a huge amount of money and your best bet is with a swiss bank if you don't want to face tax consequences, but we all know how that works.
I say if you want to withdraw your money really, withdraw it slowly and with different accounts, don't do it all at once. Give the market time to recover from your sales.
I say if you want to withdraw your money really, withdraw it slowly and with different accounts, don't do it all at once. Give the market time to recover from your sales.
The withdrawal amount is too big, I don't think there are banks or any local exchanges that can make you convert in one time with no worries.
That amount might be questionable to any exchanges if you're just a new user. So the best thing to do is to withdraw a couple amount gradually and use Bitcoin mixer to make sure that your address is clean and not connected to any suspicious address.
That amount might be questionable to any exchanges if you're just a new user. So the best thing to do is to withdraw a couple amount gradually and use Bitcoin mixer to make sure that your address is clean and not connected to any suspicious address.
How would you go about cashing out very large sums of Bitcoin, or other cryptocurrency?
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
A hypothetical example:
You were fortunate to purchase five thousand Bitcoin, when it was only pennies a coin, and it's now worth a whopping $130,000,000. This is now sitting in cold storage in your digital wallet, and you want to cash out 100 million usd.
1) Are Coinbase and Gemini your only convenient options? Will they be able to cash out such a large sum, and send the proceeds to your financial institutions without issues?
2) FDIC insurance only covers up to 250k per bank account. So, you would need more than four hundred accounts in order to cover all 100 million dollars. Is there a better way? Can you just send all 100 million directly to your Vanguard brokerage account? How do the ultra-wealthy do it??
3) What would happen if you suddenly sent a hundred million dollars to several banks/financial institutions? Would the IRS be immediately notified? Would your accounts get frozen? How do you avoid this?
No snarky answers, please. The above are only hypothetical examples. I don't own 5000 Bitcoin. Not even remotely close.
Jump to: