Crypto-to-Cash, how do YOU off-ramp cryptocurrency into paper Fiat currency?

in #cryptocurrency5 years ago

How would YOU liquidate ~$24Mil worth of ETH, privately...?

As I am a known trainer of crypto bankers, last night I was asked by a friend of a friend , "How do I verify that the 100K ETH shown to me in someone's phone is legitimate? And how would I suggest they privately go about turning that cryptocurrency into Cash?"
4 phase state Liquidity flow chart.jpg
Bitcoin has become the main Fiat<-->Crypto trading pair, as well as the crypto international reserve currency. All other cryptocurrencies can generally be accessed with BTC, as it has become the universal common denominator for trading between cryptocurrencies. With small amounts able to move directly into cash through P2P networks, or privately into and out of Metals, (vaulted and/or delivered).

My first thoughts were there's no better proof of coin than a small transaction sent from their wallet holding the coins, I'd not likely trust any other "Proof of Coin" as it's called.

But, assuming the balance is legitimate, many other question immediately arise:

In what form will the real assets being purchased, ultimately be parked?
The destination decides the path to be taken:
-Land,
-Vehicles,
-Stocks/Bonds,
-Precious Metals,
-Bank Accounts,
-Cash, etc.

What NAME are those assets to be Titled under?
As does the type of entity:
-An Individual Name, or a Business Entity,
-Investment or Asset Protection Trust,
-Corporation,
-LLC
-Registered in what jurisdictions?
If the US, then which State?
-Wyoming,
-Nevada,
-Texas,
-Delaware,
-Puerto Rico

If a Face-to-Face table-top Cash OTC exchange is desired:
Physical security and money laundering become a concerns:
-Where and in what quantities per transaction, per day, for how much in total?
-How many, if any, of the coins are "Virgin", freshly mined without any transaction history to account for in AML compliance?
-Can a source of coin documentation be provided for the coins, will they all pass clean through chain analysis?

Or is a remotely transacted trade preferrable...
The compliance becomes and issue:
-With or without bank accounts, KYC, & source of funds documentation?
-What about using crypto exchanges; Yes, or No?
-Which, if any, exchange accounts have already been created, or might you be willing open?
-Also with, or without, KYC? As a Business or Individual account?
-What, if any, escrow service is to be trusted?
-Where is the price taken from and are any discounts or premiums desired for bulk purchases?

All forms of currency, political or crypto, are forms of potential energy. REALizing that potential means letting the current flow, be put to use, and used to acquire real physical assets.

The papered Titles of our assets, or the Private Keys of our crypto, each provides control or ownership of the assets. And it may or may not, be wise to put them in an individual's Name.

For living breathing Beings, the point, after all, is to make Real the potential which money represents.

The documentation on the "Mansion" and the "Limo" matters less than who gets to decide the occupants and the destination. Even who opens the door and turns the key matters less than decision-making rights. This applies to our crypto, the same as it does to our houses, cars, planes & boats.

Tetrahedronal Business Structures, assets held, & 4 Directions of Attentiion.png

This is an example of a 3-dimensional model of a possible "invisible structure" for multi-layered asset protection. Where the liquidated crypto would end up would decide the path taken in order to reach the appropriate parking spot.
Asset-Protection-Tools.png

Which business vehicle is best suited for our trading operations depends on the terrain and the cargo...

Weather and sea conditions decide which vehicle is most appropriate for each use. As does the distance we're traveling and the cargo we carry.

Putting this into nautical terms.

We use
-a dinghy (mobile hotwallet) for travel to the docks for trading.
-a change-purse (exchange wallet) for carrying coin into the local marketplace.

Moored in the harbor, both
-a motorized vessel (hardware wallet) for coastal and
-a blue-water sailing vessel (physical paper wallet) for long-term international movements.

This structuring model allows for diversifying risk, control, and jurisdiction. Each asset class has varying degrees of risk of theft, of liability, and holding costs. With more, or less, control and/or Titled Ownership necessary. Meaning boats and cars held in LLCs and Real Estate held in Asset Protection Trusts. With retirement funds in Investment Trusts trading with stocks, bonds, and exchange accounts.

Trust, Centralization, Privacy, and Control.
These all exist not as either/or scenarios, but as a sliding scale. With varying degrees of each existing on a spectrum. And are rarely possible, or even a good idea taken to any extreme.

Navigating a Trustless realm doesn't mean that you never choose to Trust anyone. It simply means that Trust is now a Choice.

One that we must exercise and make wisely. Sometimes choosing to trust some entities, to some degree and with some assets.

Always trusting ourselves over all others, but still with a backup plan...
Thinking that digital defenses alone are enough to protect your assets and your privacy is a mistake.

The wise will make use of the legacy asset protection tools and tactics, by not throwing the 'baby out with the bathwater'.

Sailing Vessel.png

A blue-water sailing vessel requires not only a knowledgeable Captain, but also a trained crew, and a large capital investment in the vessel itself.

This applies to our international crypto banking operations too, as we act as merchant mariners trading with virtual vessels.
Answering the question,

What would I do if I had ~$24Mil worth of ETH that I wanted to spend and protect?

First of all:
-Create immediate Credit liquidity pool; use 1%, ~$240K to privately buy Gold/Silver. Storing it in a Singapore vault,. Keeping it available on-demand for collateralized P2P Fiat loans or selling back into cryptocurrency. Denominating the funds in USD or GSD kept in a trusted Singapore Bank. Making $120K available in Bank Credits if desired at any time.
-Establish Fiat Cash liquidity streams; use the local BTC ATM which will buy amounts over $10K at a time F2F. Or the machine will issue up to $3K/day with only a SMS verification. Both scenarios for P2P Buy-Orders are available at a -4% discount below Market Spot prices at the time of the transaction. Providing dollar-cost-averaged sales and avoiding speculation on the best time for liquidation. By executing these liquidation events daily, or 2X weekly, cash-out events. At $20k/wk cash acquisitions would provide a $240K Cash position over a period of 3-months. Accomplished with an averaged sale price that avoided all concern with daily price considerations.
-Prepare purchasing power protections;defend the capital valuation of the majority of the ETH held in my cold/frozen wallets. Send 5% of the USD value of the total holdings to a newly created exchange account. (Created without KYC, and with a private Protonmail email account, loaded after transaction washing through multiple coin-join transactions. Making certain verification using 2FA, and email for withdrawal is mandatory.) That ~$1Mil worth of ETH, I'd trade on-exchange into BTC. And would withdraw all that BTC from, (let's say Binance), as soon as possible into my own Cold hardware wallet.
-Defend the capital value of digital assets; create self-manage leveraged "crypto hedge fund" accounts on-margin placing half of that BTC, ~2.5% of the total crypto holdings now, on deposit with Bitmex. Then using that ~$500K, take out a leveraged short-sale position using 50-1 leverage on the ETH futures contract. Locking in the USD price of the total ETH holdings. Any downside price movement will increase BTC accounts, in direct proportion to the losses on my ETH accounts. Using contract "paper profits" to offset the market price depreciation caused by the inevitable volatility in small immature capital marketplaces.

Having used only $1.5M, the other $22.5M as ETH nows needs protection with the self-managed Hedge position. Requires the locking up of only $500K in crypto capital. Leaving the only "Trusted 3rd parties" as Bitmex and the Bullion storage facility, holding only 3% of the total capital. Keeping ~$500K liquid as BTC and another $240K "stable" as precious metals. Yet still 100% liquid into BTC or 50% into Fiat Credit as collateralized debt. With another $240K to be off-ramped at $3K/day per telephone #, turning into privately acquired Fiat Cash.

The ETH holdings could collateralize Fiat loans to buy real estate or to invest in revenue-generating businesses. Or easily moved through any of the newly established channels into BTC, or any other Alt-coin on Binance. From there, exchanged into precious metals or added to funds for exchanging into physical Cash. Once the business structures are in place, investment crypto can also be easily turned into Business Bank Account Credit too.

Cash liquidations fund the creation of multiple special-purpose-vehicles for crypto operations. Starting with, **the Puerto Rico Corporation that would only owe PR a 4% Corporate income tax. **As well as, no tax liability regarding capital gains. And would get property tax discounts and Opportunity Zone tax breaks too. Its role in the business would be to hire management of the investment accounts and real properties. Those assets Titled in the NAMEs of the Trust and LLCs used for growing capital pools.

The PR Corp would become the Beneficiary of the Nevada Trust. Established through Prime Trust, a crypto friendly Trustee, operating in a crypto friendly regulatory jurisdiction. The Trust used for asset protection of Real Estate purchases, and to open Business Exchange Accounts on the major Exchanges. With the PR Corp contracted as the Manager of those investment funds on the Exchanges. Holding those assets to be collected, curated, and protected as pools of stored capital.

An LLC used for prophylactic protection when engaged in financial intercourse with the general public. Use a Wyoming LLC, as it also provides some added regulatory clarity due to the newly passed crypto friendly State legislation. Registering this LLC as a Manager managed LLC, with the Nevada Trust and the PR Corp as the beneficiaries. Collecting external payments as a prophylactic layer of separation used when transacting with the general public. A capital pool for funneling public assets into various private pools for capital storage and reinvestment.

The Individual Founder, as the ultimate "Grantor" of all the assets, holds the roles of:
-Managing Director of the LLC and Trading Funds Manager. Hired by the PR Corp for directing the exchange investment accounts.
-The Creator of and Protector for the Nevada Trust empowered to remove the Trustees if they fail to perform their duties.
-The Chief Financial/Executive Officer of the PR Corp and majority shareholder, managing all the investment capital.
Complex business invisible structuring.jpg

These ideas are intended as a possible diversification model for managing risks while freely shifting capital between 4 phase-states, BOTH publicly and privately.

Nothing shared here is intended as investment, tax, or legal advice.

Always Do Your Own Research and consult your own trusted licensed professionals in each jurisdiction and each business type.

Every Person, place, and thing will need a unique business structure.
If you like them, use these patterns as an outline for a starting point to architect your invisible business structures.

Or if you've any critiques or suggestions, please share them in a direct response.

Sail safe upon these crypto seas my friends!

Best regards,
Michael Louis Jr; Ovsen
Linkedin: https://www.linkedin.com/in/michael-louis-jr-ovsen/
email: TheTaoistCryptobanker@pm.me
WhatsApp: +1 512-693-7076

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