How does a whale sell its huge amount of bitcoins and change them into fiats?

[Kakmakr]

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. 

[1715201554]

1715201554

[sokani]

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.

[crypticj]

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

[Z-tight]

From what I read, someone who sells btc sometimes has trouble receiving the fiats in its bank account. If the sum is large, the bank turns on all its red lights.

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.

[Litzki1990]

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.

[PeRo]

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.

[so98nn]

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.

[DanWalker]

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.

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.

[Agbe]

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.

[bayudndy]

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.

[eaLiTy]

~
Especially since I read that some have problems with incoming transfers. Unfortunately I don't have millions  , I'm just wondering how it's possible (for example to buy a house or something like that)

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.

[Dr.Bitcoin_Strange]

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 👺👺