Multiple crypto exchange accounts under same person, but different ID. Will it be reported?

[DrunkFlamingo]

Hey folks,

I have heard of people opening several accounts on exchanges without problem all under the same name for the same person, but using different (all legit) ID documents for each account. LIke using a passport, driving licence, country ID card etc.

As an example: Say you open 2 accounts on Bybit. Then Bybit decides it wants you to KYC to withdraw funds on both accounts. Say you have 2 passports, or a passport and driving licence, and you go through KYC on Bybit account no. 1 with passport from country A, and then KYC on Bybit account no. 2 with passport from country B (or driver licence).

Same name, same date of birth, and various other data. But different documents, and document numbers. No proof of address required. What are the chanced of anything being flagged . reported? Would that change if you had proof of address in 2 different countries?

Or another example, with FTX basic KYC you only need to provide a phone number (as well as name, DOB, email, and state the country you live in, but not address). What if you used the same name, dob, but a different country and phone number?

 

[Sols]

If it's done ”” or suspected to be done ”” with criminal intent, yes, it would be reported (SAR/STR)). But if it doesn't come across as criminal, it's likely just treated as a T&C violation and the accounts are closed (they might let you keep one).

In the example of Bybit, it's very clearly a T&C violation:

Registration of multiple trading Accounts would be a violation of these Terms and may lead to immediate termination of these Terms and the Accounts involved.
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Chances of getting flagged are hard to quantify since a lot depends on the user and what data you provide.

If you log in from the same computer (even with different browsers, VPNs, wifis), they can easily connect the dots automatically using any half-decent fraud prevention or risk management tool.

It'd also be quite easy to cross-reference and find a match on ID number (some countries put national ID number on all ID docs), or date of birth + name + country, and other variations like that. Checks like that are often performed automatically with narrow search criteria, and wider searches are done manually from time to time.

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This is the probably the answer to your question.

 

[DrunkFlamingo]

Thanks for your insight Sols.

I was looking to get *some* of my crypto trading out of *the system* while I gear up to eventually leave my tax residence. Problem is I need API access to exchanges in order to get my algos to trade, and a lot of exchanges need at least some kind of basic KYC.

Not that I'd know, but in my opinion my activity shouldn't appear to be criminal as I'd only be trading using the algos, so no large deposits constantly in and out.

I don't want to use darks, seems like it's only a matter of time before the account would get frozen and byebye funds, plus if it did find it's way back to me it would only make a bad situation much worse.

One option I was looking at was to use an IBC in privacy location such as Belize etc, using nominees, which is owned by a private interest foundation in Seychelles, which also uses nominees, so my name is not on anything. But that seems like a lot of work around when all I need is an exchange account, and I can see issues where my name would need to be on the exchange account somewhere as a security measure.

Another idea was to sign up to an exchange such as FTX and use my real data, but say my country of residence as UAE to get around CRS. You don't need to submit ID for this account. If the account was ever asked for ID I could quickly get in touch with Fred, set up a freezone co, make a quick trip to Dubai and get a genuine Emirates ID, and voila I would have a genuine ID for the UAE. But I already use an account with FTX hence my original question.

Maybe there are better ways of going about this?

Sols said:
If you log in from the same computer (even with different browsers, VPNs, wifis), they can easily connect the dots automatically using any half-decent fraud prevention or risk management tool.
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This I am aware of. Was looking into online privacy and learned about browser fingerprinting. Seems you can never hide, only mask your activity to create one persona online that would then be unlinked the activity to your normal online behaviour.

 

[Sols]

DrunkFlamingo said:
I was looking to get *some* of my crypto trading out of *the system* while I gear up to eventually leave my tax residence. Problem is I need API access to exchanges in order to get my algos to trade, and a lot of exchanges need at least some kind of basic KYC.
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Can you create business/corporate accounts? Maybe I missed something, but I didn't understand why you want multiple accounts.

DrunkFlamingo said:
Not that I'd know, but in my opinion my activity shouldn't appear to be criminal as I'd only be trading using the algos, so no large deposits constantly in and out.
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The perception of it being criminal activity could stem from the exchange considering your multiple accounts as a way to obfuscate source or destination of funds, or to avoid reporting/KYC thresholds based on amounts traded.

At least that's a risk you'd have to be mindful of. It's unlikely to come to that, especially if we're talking about amounts under a few hundred thousand EUR/USD/equivalent. Smaller amounts rarely warrant an SAR unless there's something truly egregious.

DrunkFlamingo said:
One option I was looking at was to use an IBC in privacy location such as Belize etc, using nominees, which is owned by a private interest foundation in Seychelles, which also uses nominees, so my name is not on anything. But that seems like a lot of work around when all I need is an exchange account, and I can see issues where my name would need to be on the exchange account somewhere as a security measure.
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That'll cost a lot of money to do right (legally), if you don't want to appear in the KYC anywhere. And it'll take months to set up.

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This is the probably the answer to your question.

 

[DrunkFlamingo]

Sols said:
Can you create business/corporate accounts? Maybe I missed something, but I didn't understand why you want multiple accounts.
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There is a limited choice of exchanges which require basic KYC (No ID needed, just type in some details). I would prefer to use my real details incase an account were to get frozen, so I can submit real ID to unblock it.

IF I wanted to set up a new account under the guise it was based in another jurisdiction (eg if set up in the UAE, as a resident it shields from CRS) I would need to set up a new account on one of these exchanges. But due to limited in choice I would have to open up another account in this new jurisdiction with an exchange I already have an account with. Hope that made sense.

Corporate accounts still need director KYC info + and a whole lot more. It is another way forward, which could be done via Dubai freezone (best done if I actually moved there though) or via the Seychelles IBC + Foundation method.

Sols said:
That'll cost a lot of money to do right (legally), if you don't want to appear in the KYC anywhere. And it'll take months to set up.
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I am going to have to do some more research on this. I have been in conversation with a few offshore company service providers. offshoreincorprate was one. They make it all seem so simple, but it's hard to trust them when they are the ones to gain by selling their service. After a bit of research on here I have seen it's seldom as straightforward as they make it seem.

I am new to mentor gold, so still need time to poke around to find this stuff. Thanks for the reply once agin.

 

[Sols]

DrunkFlamingo said:
There is a limited choice of exchanges which require basic KYC (No ID needed, just type in some details). I would prefer to use my real details incase an account were to get frozen, so I can submit real ID to unblock it.
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An excellent decision.

DrunkFlamingo said:
Corporate accounts still need director KYC info + and a whole lot more. It is another way forward, which could be done via Dubai freezone (best done if I actually moved there though) or via the Seychelles IBC + Foundation method.
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I mentioned it because once you're onboarded as a corporate or institutional client, you're often permitted much higher volumes and limits than personal accounts. But it does come with the complexity of setting up such a company and solving for its tax residence et cetera.

DrunkFlamingo said:
I am going to have to do some more research on this. I have been in conversation with a few offshore company service providers. offshoreincorprate was one. They make it all seem so simple, but it's hard to trust them when they are the ones to gain by selling their service. After a bit of research on here I have seen it's seldom as straightforward as they make it seem.
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As a general rule, I only work with service providers that are licensed (check the relevant jurisdiction's financial services authority website) or that are law firms (verify membership against local bar association). Costs a bit more but I like going to bed every night knowing I won't wake up to the tax man knocking on my door. Or if they do, everything is in order and can be shown and explained.

There is a time and place for different types of service providers. Incorporations mills (unlicensed resellers of licensed service providers or law firms) can be fine for simply creating companies if you know you don't need anything custom or sophisticated. Maybe, if even then... They're cheaper, though. But the one-size-fits-all approach is dangerous. Might've worked 10+ years ago, when these types of businesses thrived, but it's a different playing field now.

DrunkFlamingo said:
I am new to mentor gold, so still need time to poke around to find this stuff.
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Welcome to the Mentor Group!

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This is the probably the answer to your question.

 

[DrunkFlamingo]

Sols said:
As a general rule, I only work with service providers that are licensed (check the relevant jurisdiction's financial services authority website) or that are law firms (verify membership against local bar association). Costs a bit more but I like going to bed every night knowing I won't wake up to the tax man knocking on my door. Or if they do, everything is in order and can be shown and explained.

There is a time and place for different types of service providers. Incorporations mills (unlicensed resellers of licensed service providers or law firms) can be fine for simply creating companies if you know you don't need anything custom or sophisticated. Maybe, if even then... They're cheaper, though. But the one-size-fits-all approach is dangerous. Might've worked 10+ years ago, when these types of businesses thrived, but it's a different playing field now.
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Thanks for your input.. food for though.

Out of interest, would you be willing to throw out some ball park figures of how much setting something up like this realistically would cost?

IBC + nominees + foundation/trust + can't see a need for a bank acc. Privacy focused.

 

[Sols]

DrunkFlamingo said:
Out of interest, would you be willing to throw out some ball park figures of how much setting something up like this realistically would cost?

IBC + nominees + foundation/trust + can't see a need for a bank acc. Privacy focused.
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It's really hard to estimate but I'd say you're looking at something in the 25””50,000 EUR/USD range. Maybe more, maybe less. If you needs are very simple, I could see it done for around/under 10,000.

Speak with Ellul and Sovereign in Gibraltar, ILS in Isle of Man, Asiaciti in Singapore/Samoa, and Dixcart. That should be a broad enough search to get an idea of what the pricing would be.

Also factor in the cost of getting a legal opinion locally to check that your offshore structure is legal and sound. You'll need that to truly sleep well at night.

Toggle signature
This is the probably the answer to your question.

 

[DrunkFlamingo]

Thanks for the all the info Sols, really helpful. 🙂

 

[aage]

Sols said:
It's really hard to estimate but I'd say you're looking at something in the 25””50,000 EUR/USD range. Maybe more, maybe less. If you needs are very simple, I could see it done for around/under 10,000.
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that's a lot of money, you must be in the high level of society if you have that money to invest to establish you this way.