6 ms·

Problem is that the source has come via Tornado cash (Which has injuctions in place in the US)....

by edf13 4y ago

dmos62 4y ago
One can use Bisq for anonymous (and trustless) crypto<->fiat exchange. I last used it couple of years ago, though.
- shagie 4y ago
  Ok, you've exchanged some eth for usd. That's in your credit card or bank. They've reported to the IRS that you've received this much money. That is an abnormally large gift and gets into https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes https://www.irs.gov/businesses/small-businesses-self-employe... Who is paying the taxes on that? The person giving it probably didn't/hasn't paid the gift taxes. This sort of irregularity is going to get you audited or a closer look and that isn't going to be be fun. Where did that money come from? Oh, it came from Tornado... now you're going to get audited to make sure that this isn't you sending yourself money. That's really not going to be fun. If you got money, its going to be taxed somehow. Trying to avoid paying taxes on that money is going to get you into more trouble. Any investigation on the history of that money is going to cause problems for the person.
  - from 4y ago
    Banks only report >$10000 cash deposits/withdrawals to the IRS. They do not report checks wires or anything else unless they are using them as part of a suspicious activity report. Gifts from foreigners aren’t subject to gift tax. There are websites where you can convert this amount of crypto to dollars in cash or in a bank account in a couple of hours if the official exchanges don’t want to touch you either (of course the fees can be higher).
    - dmos62 4y ago
      The other commentor makes a good point about taxes being a bother. You can get around it, but scaling that is similarly (or more) bothersome.
    - shagie 4y ago
      40x deposits of $9,990 will set off more suspicious activity alerts than one deposit of of $393k. The gift of a foreigner (challenge: prove that it is a foreigner) has reporting requirements described in https://www.irs.gov/businesses/gifts-from-foreign-person https://www.irs.gov/businesses/gifts-from-foreign-person As this came from a sanctioned entity (Tornado Cash), then https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information https://home.treasury.gov/policy-issues/office-of-foreign-as... may be interested in it. https://home.treasury.gov/policy-issues/financial-sanctions/faqs/added/2022-09-13 https://home.treasury.gov/policy-issues/financial-sanctions/... covers more on what to do. Trying to avoid this is likely to get someone in more trouble later.
      - from 4y ago
        40 deposits of $9900 is a felony called structuring and is not what we are talking about here. Go to p2p.binance.com or Karachi or Dubai or Hong Kong and you will find an ecosystem of people who routinely buy and sell 7/8 figures worth of crypto for wire transfers and cash. I do think that by transacting with this ETH he would be violating 18 USC 1957 (Transacting in proceeds of specified unlawful activity) so he should either get an opinion from OFAC or return the money.
  - npc12345 4y ago
prvit 4y ago
I'd guess that almost all Ethereum in circulation has passed through Tornado Cash at some point. The funds didn't come directly from Tornado, even if they passed through it in the past.

Problem is that the source has come via Tornado cash (Which has injuctions in place in the US)....

by edf13 4y ago

Problem is that the source has come via Tornado cash (Which has injuctions in place in the US)....

dmos62 4y ago

One can use Bisq for anonymous (and trustless) crypto<->fiat exchange. I last used it couple of years ago, though.

shagie 4y ago
Ok, you've exchanged some eth for usd. That's in your credit card or bank. They've reported to the IRS that you've received this much money. That is an abnormally large gift and gets into https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes https://www.irs.gov/businesses/small-businesses-self-employe... Who is paying the taxes on that? The person giving it probably didn't/hasn't paid the gift taxes. This sort of irregularity is going to get you audited or a closer look and that isn't going to be be fun. Where did that money come from? Oh, it came from Tornado... now you're going to get audited to make sure that this isn't you sending yourself money. That's really not going to be fun. If you got money, its going to be taxed somehow. Trying to avoid paying taxes on that money is going to get you into more trouble. Any investigation on the history of that money is going to cause problems for the person.
- from 4y ago
  Banks only report >$10000 cash deposits/withdrawals to the IRS. They do not report checks wires or anything else unless they are using them as part of a suspicious activity report. Gifts from foreigners aren’t subject to gift tax. There are websites where you can convert this amount of crypto to dollars in cash or in a bank account in a couple of hours if the official exchanges don’t want to touch you either (of course the fees can be higher).
  - dmos62 4y ago
    The other commentor makes a good point about taxes being a bother. You can get around it, but scaling that is similarly (or more) bothersome.
  - shagie 4y ago
    40x deposits of $9,990 will set off more suspicious activity alerts than one deposit of of $393k. The gift of a foreigner (challenge: prove that it is a foreigner) has reporting requirements described in https://www.irs.gov/businesses/gifts-from-foreign-person https://www.irs.gov/businesses/gifts-from-foreign-person As this came from a sanctioned entity (Tornado Cash), then https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information https://home.treasury.gov/policy-issues/office-of-foreign-as... may be interested in it. https://home.treasury.gov/policy-issues/financial-sanctions/faqs/added/2022-09-13 https://home.treasury.gov/policy-issues/financial-sanctions/... covers more on what to do. Trying to avoid this is likely to get someone in more trouble later.
    - from 4y ago
      40 deposits of $9900 is a felony called structuring and is not what we are talking about here. Go to p2p.binance.com or Karachi or Dubai or Hong Kong and you will find an ecosystem of people who routinely buy and sell 7/8 figures worth of crypto for wire transfers and cash. I do think that by transacting with this ETH he would be violating 18 USC 1957 (Transacting in proceeds of specified unlawful activity) so he should either get an opinion from OFAC or return the money.
- npc12345 4y ago

prvit 4y ago

I'd guess that almost all Ethereum in circulation has passed through Tornado Cash at some point. The funds didn't come directly from Tornado, even if they passed through it in the past.