Topic: How does a whale sell its huge amount of bitcoins and change them into fiats? (Read 324 times)

It's easy to do so, but it doesn't necessarily mean that you will be the only person to receive the money that is sent to your account. Definitely, you will have a few friends who are into some big business so that they can receive a huge amount of money as much as $100k at once, and they will not be questioned by the bank because of the kind of business they do. Even if you don't have such friends, you will definitely have a friend who can make some connections for you to get some rich dude with large business who can help receive the money for you, and if they send it to your account, they can still side for you that the money is for a business deal should in case any authority approach you. It's just like that; there are ways a whale can clear the money.


Cheers 🥂, Dr.Bitcoin_Strange 👺👺

Everything depends upon the country you are living, if your country completely banned cryptocurrency trading, then you will be forced to move out and search for a free heaven and if i am selling off millions worth of cryptocurrency, i would move to a country with low taxes or no taxes at all like GCC countries and would take my time and set up business in a free zone. The only reason i will move out is because the taxes are really high for cryptocurrency here in my country.

If it's just a few million dollars then I think it's pretty straightforward, as I can see some of the top exchanges accepting user payments, and the story is at a much higher threshold I think too. think that if they already have that much money, they themselves are not an ordinary person and are actually very rich in outside life enough that banks always want to invite them to use service big so that their money is spent in the bank to earn taxes or fees,...
Like myself, I used to think that some transactions that are too large will be placed on a special list by the bank, but it is not at all, or maybe they (the banks) think it is not too much for them to invite. approach.

There are some platforms that you can convert your Bitcoins to Fiat without selling so if you have a huge amount of Bitcoin and you know that it will cause problem if you sell them, then look for those exchange platforms that converting them to Fiat instant and you use it. There is no big deal. Or in another way, if you discovered your lost key and check your wallet and see a lot of coins inside, if I am the owner, I will not sell all, I will sell the unit which I can use to spend at that time and keep the rest so that I will not empty my Bitcoin wallet.

But OP is asking how a whale can convert millions of dollars of bitcoin into fiat. While we always criticize centralized exchanges, there is no denying that they are the most liquid in the market. So not only retail investors but even whales will use them if they want to convert crypto assets into fiat. Using CEX's P2P to convert to fiat is fairly straightforward for small amounts, but large amounts can be a big deal. You won't get in trouble with exchanges, but you will get in trouble with your local bank if your account suddenly has large transactions.

Everyone discussing whether this guy with millions of stash will have a problem while withdrawing the money or not. Meanwhile, the IRS department already has all the information about your assets, and income, under the table and above-the-table money laughing in the corner!

Man, it's millions of dollars we are talking about. I highly doubt that there is any chance a whale would be withdrawing money with a lot of hesitations and justifications. If someone is holding the millions then they definitely have an accountant or bookkeeper to manage the entire workflow. Have all the documentation done already?

Moreover, they would never end up selling their crypto currencies in the country where it's strictly monitored or not allowed. I mean whats the point.

I'm guessing this could easily be done by withdrawing to several offshore bank accounts. Yes, you would have to open up a few of them but today it's very easy to open up accounts in countries you have no connection to - and it's not really expensive or time consuming to do. You could gain attention and it still would be difficult not to if you have a very large amount of cash flowing in. But I guess this could work up to a reasonable amount of money and if you are not someone very known as you've said.

Currently, various popular exchanges have introduced P2P system in their exchanges to make things easier for investors, through which you can easily exchange your currency to the local currency of your country. This system is very useful for a trader. Because since the introduction of this system, traders do not have to face any problem in converting Bitcoin to fiat. Exchanges have introduced p2p system in such a way that you can use any transaction service very easily. If you are trading in small scale then you should not have any problem in trading. Traders usually use this method. That means converting BTC to fiat is currently a very easy task.

This is the problem with fiat currencies and their centralized censorship institutions, they want to regulate you and your money, they can also confiscate your money because they control it. The banks usually get suspicious when a huge sum of money enters your bank account, they want to know the source or origin and they can freeze your funds. There are two things to do in this situation: it is either you convert it all and get ready to prove that everything you do is legal or you leave your funds in the BTC network that is censorship resistant and permissionless and convert to fiat after every two weeks or more, so the withdrawal process would take a long time and may not raise any suspicion.

I think nowadays whales might use stables like USDT to sell Bitcoin relatively quickly and then withdraw USDT relatively easily. They also can just hold stables for some time to buy Bitcoin back if needed.

So, for me, it looks like they will likely use stables then look for the customers that want to buy a whole bitcoin or more for the USD

Let's say I have a job and $400 has been coming in on monthly basis as my salary and the highest I've ever saved in this account is $3500. Maybe I recovered the private keys to my lost wallet containing btc that's now worth a fortune, let's say $10,000,000. If I convert all of it to fiat and have it transferred to my bank account, that would be a very big mistake. I don't know about other places but if I do that in my country, my account would be flagged and I would be called for questioning, to explain the source of the money and I would end up creating greater problem for myself. The best thing to do is to have the BTC stored in a hardware wallet and occasionally convert smaller amount of it to fiat and invest in businesses or buildings to avoid prying eyes.

I really see no problem, if a whale does this according to his countries laws and regulations. The whale has to show proof of the origin of the bitcoins and then when it is "red flagged" at the Bank.... he just show that proof. (Mining logs or transaction history of the mining Pool and ownership of the coins)

The moment when the Exchange converts the coins to Fiat, a transaction history are recorded and that can also be included as proof. Then it is simply the whales responsibility to declare the "Capital Gains" taxes on those coins and everything is done by the book. 

Either they cash it out in one go or they cash it out by sending it to different addresses to not rouse suspicion and then cashing it out through those wallets. It’s been a staple tactic that always works since time immemorial since bitcoin has nothing it has against selling of huge quantities of bitcoin anyway. But if you’re worried bout whales selling their holdings and then dumping the value of hitcoin for their benefit then I got good news for you, it’s not as major as think it is. For one, bitcoin is decentralized, and democratic so the common people still holds the power against the one percenters. The whales know this much and are in return making sure that bitcoin is kept alive because the moment everybody jumps ship in this train whales and everyone will have nothing to use anymore,

I think it would be best to ask a whale if he know someone and ask how a whale would convert his BTC to fiat money. My guess on how they withdraw their money is to never withdraw a huge sum of money instead withdraw portion by portion so that it won't noticed. That's what some people in my country did when they have earn money from crypto and you say that the amount is in millions in fiat moi.

I don't think that any person who lives in a country where Bitcoin or cryptocurrency is legal he should go through any trouble for selling bitcoins whether it is a big amount or a small amount it doesn't matter.
But it does matter, in those countries where cryptocurrency is not legalise. There you can be in danger for selling not only million of dollars or even thousands of dollars. As currently cryptocurrency is illegal in my country, trading any kind of cryptocurrency here is a punishable crime. And already many people have been caught and jailed for this cryptocurrency transaction.
So the main thing is where you are living if there cryptocurrency is illegal then 1k dollar of selling bitcoin can be a cause of trouble for you, but if you are living in a country where it is legal then i think you don't have to be worry for anything Even then, if there is any problem, it will be cleared just by showing the document.

It won't be a problem if the bitcoins are his because the government has nothing against him as long as the bitcoins are yours. But the problem here is the envy you will face because once there are people who know about the massive amount of bitcoins you have, most of them will be interested in getting it from you, and you won't get away with it once they know your location. That's why the best thing to do is to lay low and chill, and you just need to learn the basics on how to hide your identity when converting it to fiat to protect yourself from those kinds of guys and also from huge numbers of questions from the banks.

What good is a whale signal without a whale movement?
It would be difficult for a whale to convert such huge coins into fiat without heads turning as to why, what it is intended for.
Some do purchase stuff online or from the dark web, and maybe resell upon shipping.
Perhaps, buying shares in start up companies or stocks, since that could be done.
The divide and conquer as I read somewhere here can
also best suit such a sale, for ease of changing into fiat.

After reading the first page of replies i can conclude that it is not possible for an ordinary person who just became a millionaire to withdraw money by keeping his/her identity hidden. As, i have read recently that there are exchanges that do not require KYC and there are people who gave 100% importance to remaining hidden of course their intentions are not bad always. Just like our respected Ratimov.

The point is, if you are a guy who gives hundred percent importance to anonymity then it will become die-hard for you to withdraw all of your million in one go on any centralized exchange. As divide and conquer rule best suits you here but you needed them in a hurry so what you can do is maybe contact any group of people who would withdraw your money using their centralized exchanges into their banks and then they would send it to you, maybe you could ask your friends or relatives to make this happen for you but still, it will be opened to everyone. (no secret will remain hidden).

I would suggest, trying to negotiate with the seller of the house, maybe he would agree to receive direct BTC so you could just hand over your BTC or Wallet containing BTC to him. Everyone has there own way to deal with things and find loopholes and different ways based on the country you are living, so answer will never be same and many will hesitate to share this info too.

I had to look into this and i had a thought over it, what would one be doing with such huge amount of money  at instant withdrawals be it in a crypto friendly or anti crypto country. I realize that there are some big shots who could just do that within some seconds and nothing would happen and i remembered that this topic could still be applicable to a person with modest lifestyle and all of a sudden he or she discovers their private keys to a long time wallet holding lots of funds and that is where it begins, government and bank begins to pop eyes into you but as a smart individual, you show know that it would be very risky to make such huge withdrawal at a stance because it would attract the bank to you and you would start fielding unnecessary questions which should have better been avoided with wisdom. Be it  a crypto friendly or anti crypto country, it would happen so as long as there have been no record of such financial transaction related to your account before.
This kind of situation is better handled with wisdom so as not to loose out.

Walk to an offline broker and negotiate a deal with them. Receive a portion in cash and rest in bank. But it is wise to not convert a huge amount of bitcoins at once. If you suddenly receive a huge sum of money in your bank account which doesn't match the previous transaction trend, your bank can freeze the account.

So always convert a little amount of money which doesn't raise suspicion. Or do cash trade with offline brokers.