For the sake of discussion I've been using a close family member to buy btc using circle. Now that it's not an option anymore I am thinking about having them sign up for coinbase but know they are load more stricter (and investigative) than circle used to be. To give some idea this family members is "clean" but I'm concerned what type of stuff the IRS is able to do if he just tells them to go fuck themselves if they ask questions. Questions like "You've bought X amount in bitcoin and you have stated it is not used to make money how have you been able to afford to buy this many btc when you only earnY" or something like that. Can they get in trouble for not having an "alibi" for the money?
Outside of regulation problems I remember reading that coinbase was tracking btc up the blockchain in some cases even using an intermediate wallet has caused users to be banned(or rather not prevented them from being banned ). Is there an amount of wallets I can hop the money to to avoid this? Are tumblers able to be iden tified as well?
I'm less concerned with legal problems than getting banned but would like to hear all input.
yes