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

[Becassine]

Hello,

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. I guess it's not a problem for someone famous, but for an ordinary citizen, how it happens if he lives modestly, recovers his private keys that he lost 10 years ago and finds himself with millions?

[1714594816]

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[Woodrose]

Hello,

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. I guess it's not a problem for someone famous, but for an ordinary citizen, how it happens if he lives modestly, recovers his private keys that he lost 10 years ago and finds himself with millions?

It's not a problem at all. There are many wallets nowadays that you can use to cash-out your money. And for me, why do you need to transfer all millions of dollars in a single event if you can divide your money into different assets such as pouring them in different exchanges or foreign stocks, buy different cryptos and save in different wallets. Just make sure you'll not forget the seed phrase.

[Becassine]

Hello,

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. I guess it's not a problem for someone famous, but for an ordinary citizen, how it happens if he lives modestly, recovers his private keys that he lost 10 years ago and finds himself with millions?

It's not a problem at all. There are many wallets nowadays that you can use to cash-out your money. And for me, why do you need to transfer all millions of dollars in a single event if you can divide your money into different assets such as pouring them in different exchanges or foreign stocks, buy different cryptos and save in different wallets. Just make sure you'll not forget the seed phrase.

Sorry if you don't give me examples, I don't see how it's possible. 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)

[Minor Miner]

Hello,

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. I guess it's not a problem for someone famous, but for an ordinary citizen, how it happens if he lives modestly, recovers his private keys that he lost 10 years ago and finds himself with millions?

The way I see my local investors do it is they move all their bitcoins to the top exchanges because the liquidity on centralized exchanges is huge, and the conversion from bitcoin to USDT is too simple. They then use the exchange's P2P service to convert to fiat little by little, they never place an order too large to make the banks suspicious. I think it is not too difficult to do, converting crypto to fiat is very simple, even if it is millions of dollars. I've never been worried about that, what I'm worried about is how to have a lot of bitcoin to do it  .

[Don Pedro Dinero]

Unfortunately I don't have millions  ,

It is noticeable.

I'm just wondering how it's possible (for example to buy a house or something like that)

If this person has previously made deposits of large sums in centralised exchanges, he/she will not have any problems, because he/she will have already filled in enough paperwork.

The problem would be someone who has somehow kept bitcoins out of the sight of banks and authorities and suddenly turns up with millions of bitcoins from who knows how. But if it's someone who has a lot of millions, either they won't have done it that way, or they'll have ways of bringing it to the surface via alleged profits of companies or something like that.

[Becassine]

The problem would be someone who has somehow kept bitcoins out of the sight of banks and authorities and suddenly turns up with millions of bitcoins from who knows how. But if it's someone who has a lot of millions, either they won't have done it that way, or they'll have ways of bringing it to the surface via alleged profits of companies or something like that.

That's my question. A person who lost his private keys for years and recovers them. Maybe he mined btc or he won btc with a faucet, how can he prove all that after 10 years ?

[Poker Player]

That's my question. A person who lost his private keys for years and recovers them. Maybe he mined btc or he won btc with a faucet, how can he prove all that after 10 years ?

Don't worry about that person. If he is someone who has a lot of money, he will have no problem bringing it to the surface. The problem would be for you if you suddenly recovered a few dozen bitcoins that you had on an old laptop from when they were worth pennies.

We have discussed this many times in the Legal section of the forum and the conclusion is that the best thing to do would be to hire a professional specialized in these matters to advise you, as what you can do will depend on the legislation where you live.

[pooya87]

It depends a lot on the country and their local regulations involving bitcoin and sometimes the bank that they are using. This is not something global, some countries don't have nasty banks that would just shut down your account if you withdraw even a tiny amount of fiat from a bitcoin exchange, some others do.

[tabas]

Hello,

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. I guess it's not a problem for someone famous, but for an ordinary citizen, how it happens if he lives modestly, recovers his private keys that he lost 10 years ago and finds himself with millions?

If a whale is popular, we've just seen how they've been exposed that they've been selling through huge exchanges as well just like what has happened on the FTX. But if this just an ordinary person, I wouldn't worry about him/her because he's bright enough to buy bitcoin as the earliest stage and selling it would be easy. The regulations will depend on where he is found and I am sure that he won't just sell all of it on an instant with just one exchange. Scattering it and spreading it across various exchanges could be his option and one thing is for sure that he can't skip the KYC part because if he wants to sell and have no problem then that's what he has to go through. Not unless, he knows a huge place where he can OTC or through P2P without having any issues.

[pakhitheboss]

It depends on the whale. If the whale is already wealthy and well-known, he/she won't face any problems when exchanging Bitcoin for local fiat at a local bank. However, if it is a common man or a woman, they would convert their Bitcoin into local fiat in smaller amounts to avoid arousing suspicion. Then as
pooya87 said it also depends on the country where the whale resides. Some countries do not have hash laws against converting Bitcoin to local fiat.

[Tytanowy Janusz]

Just like others said. Going yolo is the worse thing you can do. Hire professional lawyer and tax advisor. A good tax advisor will not only legally limit the tax to be paid on such an amount, but also advice you how to do it as painless as possible, because perhaps for millions suddenly found in a long-forgotten bitcoin wallet, it would be better to go to a tax haven for six months for a beautiful holiday combined with a change of tax residence.
You can also consult various banks beforehand and ask if they have a problem with such a deposit.

[davis196]

Hello,

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. I guess it's not a problem for someone famous, but for an ordinary citizen, how it happens if he lives modestly, recovers his private keys that he lost 10 years ago and finds himself with millions?

Offshore banks and offshore companies are a thing. Have you asked yourself why trillions of dollars are being kept in offshore companies located at "tax heaven" islands? The rich people are using such companies because they are very convenient.
Selling big amounts of BTC in centralized exchanges seems very risky to me. I guess that the crypto whales are negotiating big deals with the crypto exchange owners and they sell them their BTC outside of the crypto exchange platforms.
Obviously we are not crypto whale accountants and we don't know how the crypto whales are moving their wealth, so I'm just guessing.

[Die_empty]

It depends a lot on the country and their local regulations involving bitcoin and sometimes the bank that they are using. This is not something global, some countries don't have nasty banks that would just shut down your account if you withdraw even a tiny amount of fiat from a bitcoin exchange, some others do.

You don't dare mention you have a huge amount of bitcoin in my country because the government holds a negative view of the currency. Within a few minutes, the police and other law agencies will start monitoring and tracing your account and even your location. Using exchanges will also be risky because the money will still have to be transferred to your account which also raises a red flag. P2p transactions will be good if the other party is trusted and willing to pay in cash.

Exchanging the coin gradually is another option but the funds in the bank account will still increase to attract suspicion. The best option will be to get professional advice from an experienced and trustworthy financial or investment expert. They are skillful in handling such issues if you can pay for the services. I highlighted trustworthiness to avoid engaging a dubious company that can cause more harm. I am sure that when I get to that bridge, I will crossover.

[Issa56]

Hello,

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. I guess it's not a problem for someone famous, but for an ordinary citizen, how it happens if he lives modestly, recovers his private keys that he lost 10 years ago and finds himself with millions?

In country if a huge amount of money is received, then the banks are going to freeze your account which you will be invited to defend the source of the money, but if scenario like this can happen, all what I will do is converting my bitcoin to fiat gradually, since all accounts in my country is having limit, if you haven't exceeded the limit, then they wont be able to freeze your account, I will make sure i don't go beyond my limit, after spend the money I withdraw in my account, then i will convert another bitcoin to fiat. If you can be doing it like that the banks wont be able to do anything with your account, but immediately you withdraw everything at once, then you will have to visit the bank and explain your source of income, and in my country the central bank have given all other commercial banks the permission to ban all accounts that are connected to crypt currency activities.

[BD Crypto]

I guess it's not a problem for someone famous, but for an ordinary citizen, how it happens if he lives modestly, recovers his private keys that he lost 10 years ago and finds himself with millions?

If Bitcoin is illegal in your country then there might be a problem and Bank can detect suspicious activity. So the best option to send it to a trusted centralized exchange and convert it to stable coins. If you need fiat then just trade with P2P option.
And I don't think an Ordinary citizen need all of his million dollars at a single time. He can secure his funds by buying stable coins and storing in a non custodial wallet. Then he can follow this P2P procedure again and again to convert it to fiat.

[Sim_card]

Since the person is a common citizen,he need to transfer his bitcoin bit by bit to an exchange and from the to his bank through P2P, and make sure that he cashes out every little transaction that he did. Repeatedly, he will be able to convert the million btc to fiat. Since he is a common citizen, he can't do it once to avoid any suspicious act. There is no hurry in life that is why he needs to take it bit by bit,after all he is the owner of the bitcoin. If he is not greedy and needs that cash in bulk,then he needs to consult a professional specialist for advice,if bitcoin is legal in that country.

[Becassine]

Just like others said. Going yolo is the worse thing you can do. Hire professional lawyer and tax advisor. A good tax advisor will not only legally limit the tax to be paid on such an amount, but also advice you how to do it as painless as possible, because perhaps for millions suddenly found in a long-forgotten bitcoin wallet, it would be better to go to a tax haven for six months for a beautiful holiday combined with a change of tax residence.
You can also consult various banks beforehand and ask if they have a problem with such a deposit.

Unfortunately your remark makes me think that it is the people who have the most money who also want to avoid taxes the most. It's really too bad, what's the point of having so much money ? In fact, I was thinking above all of the average citizen who could be accused of money laundering when he is innocent. Otherwise yes thank you for the answers which advises a tax lawyer, it is obvious, I had not even thought of it.

[Tytanowy Janusz]

Unfortunately your remark makes me think that it is the people who have the most money who also want to avoid taxes the most. It's really too bad, what's the point of having so much money ? In fact, I was thinking above all of the average citizen who could be accused of money laundering when he is innocent. Otherwise yes thank you for the answers which advises a tax lawyer, it is obvious, I had not even thought of it.

You know, imagine a scenario where you actually find 10 BTC in an old wallet, you sell it, and you want to buy a dream house for your family with it, but... you step into a higher tax bracket and the government takes 60% of it...
so you put it in your bank account and decide that you will earn the rest in 10-15 years and buy your dream house than ... nothing further from the truth, because during these 15 years 80% of what is left will be eaten up by inflation ...
I see it as stealing... but when proposing a tax advisor and a lawyer, I did not mean only reduce taxation, I also meant countries where, due to the lack of clear regulations, it is actually difficult to withdraw a larger sum without being left to the individual interpretation of a jealous official.

As for the purpose of having lots of money by avoiding too much taxation, I'll tell you that I'd rather pay less tax and put the surplus into local soup kitchens for the poor or charity for sick children than to line the pockets of corrupt politicians.

[Becassine]

Unfortunately your remark makes me think that it is the people who have the most money who also want to avoid taxes the most. It's really too bad, what's the point of having so much money ? In fact, I was thinking above all of the average citizen who could be accused of money laundering when he is innocent. Otherwise yes thank you for the answers which advises a tax lawyer, it is obvious, I had not even thought of it.

You know, imagine a scenario where you actually find 10 BTC in an old wallet, you sell it, and you want to buy a dream house for your family with it, but... you step into a higher tax bracket and the government takes 60% of it...
so you put it in your bank account and decide that you will earn the rest in 10-15 years and buy your dream house than ... nothing further from the truth, because during these 15 years 80% of what is left will be eaten up by inflation ...
I see it as stealing... but when proposing a tax advisor and a lawyer, I did not mean only reduce taxation, I also meant countries where, due to the lack of clear regulations, it is actually difficult to withdraw a larger sum without being left to the individual interpretation of a jealous official.

As for the purpose of having lots of money by avoiding too much taxation, I'll tell you that I'd rather pay less tax and put the surplus into local soup kitchens for the poor or charity for sick children than to line the pockets of corrupt politicians.

Seen like that, indeed you are right on all counts.

[DapanasFruit]

Nobody here is worrying how one whale can be turning his/her BTC into fiat and not be caught red-handed by glaring authorities (yes, of course, the conversion can be done slowly so as to never reach the red flag level). Now, I think the big program is NOT having enough Bitcoin on someone's wallet that can be sold once there can be a big bull run soon - that is when BTC will breach the $60K level and then get into the 7-digit zone. I am expecting that there can be a big wave of interest with BTC coming from both institutional and retail investors so better watch out for that and continue holding your BTC guys!