Silk Road forums

Discussion => Security => Topic started by: thekinggg on July 26, 2013, 06:54 am

Title: Idea for cashing out..
Post by: thekinggg on July 26, 2013, 06:54 am
Sending your bitcoins to Localbitcoins and selling them?

Thoughts on that?

You could even make a profit off your coins by ticketing them..hehe. ::)
Title: Re: Idea for cashing out..
Post by: Lucius Luv on July 26, 2013, 02:54 pm
don't cash out locally.  this method is really putting yourself out there. i'm fairly positive that site won't be up by the end of the year, I'll make that bet with btc.
Title: Re: Idea for cashing out..
Post by: tbart on July 26, 2013, 03:17 pm
don't think a seller has to deposit them with localbitcoins for all transactions - my seller only does F2F cash sales - when we met, he showed me his blockchain wallet with the coins and my wallet's address in the send to box - i gave him the cash, he hit send, 30 seconds later i had a notification on my laptop that coins had been received

it saved him the localbitcoins 1% escrow svc fee, and kept my costs down, i paid about 5% over mt gox rate

fwiw
Title: Re: Idea for cashing out..
Post by: Mr. Fluffles Schrodinger on July 26, 2013, 04:23 pm
don't think a seller has to deposit them with localbitcoins for all transactions - my seller only does F2F cash sales - when we met, he showed me his blockchain wallet with the coins and my wallet's address in the send to box - i gave him the cash, he hit send, 30 seconds later i had a notification on my laptop that coins had been received

it saved him the localbitcoins 1% escrow svc fee, and kept my costs down, i paid about 5% over mt gox rate

fwiw

I have a friend who preaches localbitcoin to no end, but he's never used it. It's all theoretical.  As always in these situations, I advise caution due to ignorance.   
I know I've read stories in this forum and elsewhere about people being foxed with b/c they cashed out large amounts on lbtc and the feds suspected drug activity.  Stories, mind you, but they sounded pretty legit.
Title: Re: Idea for cashing out..
Post by: Veetano on July 26, 2013, 04:43 pm
While there is nothing wrong about selling bitcoins for cash and receiving large quantities of cash into your bank account, it will definitely draw some attention to you. You will most likely definitely be audited, which is no problem if you document the transactions and pay tax on your profits - you essentially wouldn't even have to launder your coins.

The only issue with this is if anything drug related every comes over and there is a bitcoin connection to you, you could run into some trouble. I doubt they would sieze your funds or anything, but the connection would definitely seem suspicious and if the heat ever came down you would have to stop all illegal activity for a while.

A person could, always, if asked where they get their bitcoins, claim they sell them for a fee% for various bitcoin entrepreneurs. I actually have a friend who does this. She sells about $60k in bitcoins per month, in return for 5% of the total coins moved, and 5% of the fees she charges customers. she withdraws the money and sends it to the clients that pay her to sell the coins and they pays taxes on everything else.

The important thing is if you're moving coins like that through a bank account that you must have everything straight with the IRS.