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.
Yeah, I'm not familiar with over-the-counter (OTC) sales at all.
To your point about moving to another country: This is 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.