140 thousand euros need to be legalized (in Bulgaria).

[ydoolb]

Hello everyone.

A friend of mine (no, really) recently made a lot of money on a famous coin pump, and then - without listening to my advice - cashed it out in euro banknotes in Bulgaria ((thank God, not Bulgarian leva) .

Now he has an idea to buy a plot of land (for 140 thousand euros) in Bulgaria, but this can only be done with the participation of a bank, and the bank needs some kind of proof of funds (and my friend obviously does not have any).

What should he do in this situation? Right now he is literally sitting on a small mountain of cash.

 

[daniels27]

Does he have any proof of his $TRUMP pump? I mean like buying and selling proof?

Because no proof means, that the money probably comes from a scam. Like the fake arbitrage video we had to report last night here.

Also, what is his tax residency? Are his gains taxable there?

 

[ydoolb]

daniels27 said:
Does he have any proof of his $TRUMP pump? I mean like buying and selling proof?

Because no proof means, that the money probably comes from a scam. Like the fake arbitrage video we had to report last night here.

Also, what is his tax residency? Are his gains taxable there?
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Not sure about $TRUMP one bur it was defiently one of shitcoins from last year. I'm not sure about buying/selling proof but it was some of dex'es lime pumpfun or dexscreener.
He is Bulgarian Tax Resident.

 

[daniels27]

Ok, then declare it and pay taxes on the gains. He can then use the money.

I do not know how he can end up with no proof. Maybe you can enlighten me on that part.

 

[ydoolb]

Because there is no legitimate connection between him like bulgarian tax resident and dex. If we were talking about an account on Binance where he passed verification with his first and last name and bank details, bought bitcoin there, and then sold it there - then this is one easily solved matter. But he has money from a decentralized exchange, where there is neither an account nor a KYC, no AML, no real verified connection between him and that dex.

 

[daniels27]

ydoolb said:
Because there is no legitimate connection between him like bulgarian tax resident and dex. If we were talking about an account on Binance where he passed verification with his first and last name and bank details, bought bitcoin there, and then sold it there - then this is one easily solved matter. But he has money from a decentralized exchange, where there is neither an account nor a KYC, no AML, no real verified connection between him and that dex.
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You mean he bought it directly? Ok, but then he has the transaction records as proof.

 

[ydoolb]

daniels27 said:
You mean he bought it directly? Ok, but then he has the transaction records as proof.
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It is transaction records without KYC so bank won't accept them.

The first thing I advised him was to transfer the money after conversion back to USDT on Binance, where he probably has an account with KYC and send them by bank transfer(s) to the bank of his choice. But he already exchanged them for cash in euros in some OTC desk without any KYC. So we have what we have.

 

[wellington]

ydoolb said:
It is transaction records without KYC so bank won't accept them.

The first thing I advised him was to transfer the money after conversion back to USDT on Binance, where he probably has an account with KYC and send them by bank transfer(s) to the bank of his choice. But he already exchanged them for cash in euros in some OTC desk without any KYC. So we have what we have.
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Surely the OTC transferred to his bank?

Not literal cash over the counter.... if so he's probably exchanged with money launders lol

As for the dex this is no issue

1) Needs source of funds from FIAT to Crypto
2) Needs to track the wallets using Etherscan / other and plot each move with documentation
3) Needs to find the transactions for the DEX(s) which are all recorded on etherscan sequentially date/time wise.
4) from there to OTC and cash.

 

[ydoolb]

wellington said:
Surely the OTC transferred to his bank?

Not literal cash over the counter.... if so he's probably exchanged with money launders lol
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if they sent him money to the bank - I wouldn't ask any questions here. He has cash now from OTC.

Regarding the list of items from the "what to do" list (thanks, by the way), I'll ask him, but the main problem is that he has cash on hand + I'm not sure how Bulgarian banks (I already asked to clarify which bank) treat money from crypto and, especially, money from crypto after it was received as cash from OTC.

 

[Sols]

daniels27 said:
Ok, then declare it and pay taxes on the gains. He can then use the money.
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This is the right course of action. Many tax authorities don't care about source of wealth, which you can use to your advantage. Declaring the funds and paying taxes increases their legitimacy.

Once that's done, you can try depositing the money in cash. Proving that they have been declared and taxed should help quite a bit with getting the money into a bank. However, there may come a point when banks question the funds even if taxed. It's especially unusual that it's a foreign currency. Bulgarian banks know that large piles of foreign currency means the money didn't come from anything local. Very few exceptions to that.

OTOH, 140,000 isn't a huge sum of money. Unless he's in a hurry to spend it all, your friend can simply use that money for day to day spending over the next couple of years while his normal income streams go directly into savings/investments.

If he really wants the money in a bank, a trip to Turkey might be in order. No limits on bringing in foreign cash and the banks are very happy to take foreign currency. Source of funds checks are very lenient in Turkey. Head down to Istanbul, get a local tax ID, and then go open personal bank accounts. Have seen it done just in the last couple of months.

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This is the probably the answer to your question.

 

[polonieth]

Capital gains in BG is only 10%, so it's not so bad to bite the bullet and pay taxes on it...

But can't he just spread a few thousand euros across several bank accounts?

 

[ydoolb]

polonieth said:
But can't he just spread a few thousand euros across several bank accounts?
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he wants to buy real estate and, if I understand correctly, this is why it is necessary to confirm the legality of the money and all this must be in one bank (because for real estate transactions in Bulgaria you definitely need a bank).


stealth edit:

Sols said:
OTOH, 140,000 isn't a huge sum of money. Unless he's in a hurry to spend it all, your friend can simply use that money for day to day spending over the next couple of years while his normal income streams go directly into savings/investments.
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He is in a hurry=/
but thanks for the advice (especially about Turkey, I'll pass it on to him)

 

[CyprusLawyer101]

Can he get a loan from a bank ? Maybe by placing as collateral the real estate. The he can be repaying the loan with small increments of cash !?

 

[daniels27]

Just give 10k to all of your friends and have them wire him 10k. If anybody asks: "Oh this dude wanted to buy a house, so we all took our savings and deposited them and loaned him 10k for the house."

The legal way is to pay tax and then you can also deposit it.

 

[bubbledouble]

ydoolb said:
Hello everyone.

A friend of mine (no, really) recently made a lot of money on a famous coin pump, and then - without listening to my advice - cashed it out in euro banknotes in Bulgaria ((thank God, not Bulgarian leva) .

Now he has an idea to buy a plot of land (for 140 thousand euros) in Bulgaria, but this can only be done with the participation of a bank, and the bank needs some kind of proof of funds (and my friend obviously does not have any).

What should he do in this situation? Right now he is literally sitting on a small mountain of cash.
Click to expand...

If it's a bank in Bulgaria, I'm pretty sure they're easy to convince when it comes to "proof of funds" and all the other silly rules they have these days. I'm sure some people here on OCT have already reached out to you to offer help, it's an easy job for most people here to handle.