Anyone can readily see by my previous questions that I have virtually no idea what I'm doing. Be that as it may, it seems very realistic that I may become a bitcoin (multi?)millionaire within the next 12-36 months. I am rapidly headed in that direction with no further action necessary on my part.

If I get to that point, I'm not going to wait around to see if I can become a billionaire. I'm going to get out at a level I can buy a house and retire.

However, I am not prepared for all this. I know even less about being rich than I do about bitcoin. And one of my questions is becoming

  1. How is my bank going to react to massive amounts of deposits in a short period of time? (For example, $100,000+ a month as I liquidate my crypto)
  2. What can I do to keep my bank from some type of adverse reaction: freezing my account or launching an investigation or worse?

I will have records from the exchanges (including local bitcoins) of every sale documenting it's a crypto-currency sale as opposed to some kind of proceeds from criminal activity. And I will set aside the 15% for capital gains needed to give the IRS.

I don't consider myself a paranoid person; however, the owner of my bank is the man who called bitcoin a fraud.


Lo and behold, what I fear is not imaginary. It actually happened to at least one guy. See this reddit article. Like him, almost all my transactions are to / from Chase and Coinbase. And here's another guy, same thing:

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Update 2

I called Chase and I was very blunt about my intentions. I realize their Customer Support Department is probably the least in the know with regards to what the Fraud Prevention Department would or wouldn't do in a given situation. But they told me, if I started making large deposits frequently, they would pull me aside and, and offer me an upgraded set of accounts. He told me it's no different than being successful with an E*Trade account. I am also gradually working to get my Coinbase limits increased by progressively making larger and larger transactions on their site. So, when I'm ready to sell I can sell and withdraw more in a given period of time.

  • 2
    I'm voting to close this question as off-topic because you should consult a financial advisor at your local jurisdiction
    – rny
    Nov 4 '17 at 16:07
  • 1
    The one thing not to do is to try to adjust the amounts or timing of your transactions to minimize scrutiny or reporting. That is a crime in itself ("structuring", 31 USC 5324 (a) (3)), even if the transactions themselves are perfectly legitimate. Nov 4 '17 at 17:42
  • To cover your bases, you might like to get an account with a different bank just in case your current one gives you trouble? Nov 5 '17 at 1:12
  • 1
    @HighlyIrregular, I appreciate your suggestion, but my goal is to prevent the trouble from occurring in the first place, not run away from it, so I would like to know what all I can do with my bank in advance or during the sales to prevent issues.
    – toddmo
    Nov 7 '17 at 17:29
  • This question may be better asked on the Money StackExchange site (money.stackexchange.com) where they have a bitcoin tag. Nov 7 '17 at 19:47

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