HOW TO USE BITCOINS TO HIDE MONEY FROM YOUR SPOUSE (but note that this could be fraud)
More and more people are investigating how to use bitcoins to hide money. Mostly, these people are trying to hide the money from their spouse. And mostly, there is a divorce on the horizon.
A recent divorce dispute involving bitcoins and cryptocurrencies inspired this post. On this blog, we have been talking about bitcoins and divorce for years. The case at bar involves a couple in UK who are fighting over bitcoins worth close to $1,000,000 dollars (£800,000). The husband had invested in the cryptos years prior to the divorce and the value of investment just exploded. But big surprise, his wife cannot figure out how to get her paws on the money.
The thing that makes bitcoins and other cryptocurrencies so challenging is that this is not traceable like paper money deposits in a bank. Cryptocurrencies like bitcoins and altcoins are digital currencies that typically do not leave a clear trace of their existence like cash or even credit cards. So it is very easy to use bitcoins to hide money. It is hard to track down who owns bitcoins (even the government has trouble figuring this out) and the currency is not a regulated market like cash and deposits. So it is easy to hide these assets and get away with it – which you invariably will so long as only you know the key to your account.
It should be pointed out that, just like hiding art, hiding bitcoins could be seen as a “fraudulent transfer” which could get you into a lot of trouble. And not just with your spouse. You also could get into trouble with the government. So the advise is DO NOT USE BITCOINS TO HIDE MONEY.
But there are two easy steps to hiding the money using bitcoins where no one can ever find it:
- Don’t tell anybody about the account
- Keep details of the digital “key” locked in your own head.