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Someone violated the terms of the lending platform and had their loan recalled. This is no different to lying to your bank that you got that new $10,000 deposi
by tsujp 5y ago
Someone violated the terms of the lending platform and had their loan recalled.
This is no different to lying to your bank that you got that new $10,000 deposit from selling ice cream (taxable income) instead of selling your car (stamp duty and capital gains) then having the loan made with that capital recalled.
The only difference is this involved crypto from a tumbler (to obfuscate the origin of the Bitcoin in this case).
- HWR_14 5y agoI don't recall a bank ever asking for the source of a deposit. And every bank makes it clear you are responsible for your own taxes and tax advice.
- tsujp 5y agoSo you’re saying that for a mortgage loan, or a credit card application, or a personal loan, or a car loan that a bank will never ask you: Q1: What is your job? Q2: What is your income/year? Q3: Where is your proof of income? (pay slips, bank statements, financial records) And that if you lie about any of these it has no effect whatsoever?
- jakupovic 5y agoLet's just say that most people on HN don't know what they are talking about but pretend they do.
- HWR_14 5y agoI'm responding to someone concerned with tax treatments for income types being the banks concern. If you want to say that your mortgage originator asks about it, okay. But not the bank you are depositing in.
- gizmo686 5y agoWhen you apply for a mortgage, they absolutely need you to justify recent large deposits. This caused me a slight headache when I applied for a mortgage, as I had moved all the money I would need into 1 account before the underwriter approved the loan. I just had to provide documentation from the source banks that I was the source of the transfer and everything was fine; but I was advised that in the future, it is easier to apply with your money where it is, then consolidate it after you are verified. This also comes up with gifts, where the lender needs a signed statement from the giver that it is a gift, not a loan. E.G. to prevent exactly what the person in this story was trying to do. I suspect there is also an anti money laundering component to this requirement as well.
- HWR_14 5y agoI guess it makes sense that they need to make sure the deposit was not a stealth loan not on your credit report when applying for a mortgage. Thanks. I will say, afaik, the anti money laundering implications are not in play here and are what I was initially thinking about. The bank will report the large deposit to the government. If you're money laundering that's between you and t he government (as long as the bank reports the activity) This is much clearer than the post I originally responded to which talked about stamp taxes and capital gains.
- Arnt 5y agoTry depositing a million. The bank will ask.
- wmf 5y agoIf BlockFi doesn't want "mixing exposure" they should have never issued the loan in the first place. This sounds like a rug pull in progress.
- bb88 5y agoI disagree. It's more like buying $300,000 worth of <thing> but <thing> turned out to be used in money laundering. So when you used it for collateral, the bank decided to recall the loan. In this case <thing> is BTC, but it could very well be dollars whose serial numbers were recorded by the FBI say. But the bank probably wouldn't negate a loan in that case, since you may not have had knowledge you were dealing with a criminal. Multiple transactions with a criminal than, yes, you probably deserve whatever the bank does to you. It's subtle because it means that if you accept BTC as payment for legitimate services you've offered (e.g. Tesla), you may not be able to use it for the purposes you intended.