Quote from: Crypto Bull on September 27, 2023, 10:41:02 PM

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.

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.