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Looking for crypto friendly bank for 100-500k per month in transfers

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Solis500

New member
Apr 28, 2022
11
2
3
44
United States
#1
I'm a US citizen living in the United States. I need a bank account to make transfers to bitcoin exchanges. I will be selling crypto on Paxful and will be getting paid via ACH transfers from a merchant processor.

I need is the bank allow me to:

1) Receive Wires or ACH transfers domestically and abroad.

2) Send those funds to a cryptoexchanges like Coinbase, Binance, Paxful in volumes of 100k-500k per month

Any help is appreciated.

Cheers!
 
#2
Solis500 said:
I'm a US citizen living in the United States. I need a bank account to make transfers to bitcoin exchanges. I will be selling crypto on Paxful and will be getting paid via ACH transfers from a merchant processor.

I need is the bank allow me to:

1) Receive Wires or ACH transfers domestically and abroad.

2) Send those funds to a cryptoexchanges like Coinbase, Binance, Paxful in volumes of 100k-500k per month

Any help is appreciated.

Cheers!
Click to expand...
it requires you have one website if you request Merchant processor.
 
#4
Solis500 said:
I'm a US citizen living in the United States. I need a bank account to make transfers to bitcoin exchanges. I will be selling crypto on Paxful and will be getting paid via ACH transfers from a merchant processor.

I need is the bank allow me to:

1) Receive Wires or ACH transfers domestically and abroad.

2) Send those funds to a cryptoexchanges like Coinbase, Binance, Paxful in volumes of 100k-500k per month

Any help is appreciated.

Cheers!
Click to expand...
Are you registered with FINCEN and are you a MSB?
 
#5
Solis500 said:
I'm a US citizen living in the United States. I need a bank account to make transfers to bitcoin exchanges. I will be selling crypto on Paxful and will be getting paid via ACH transfers from a merchant processor.

I need is the bank allow me to:

1) Receive Wires or ACH transfers domestically and abroad.

2) Send those funds to a cryptoexchanges like Coinbase, Binance, Paxful in volumes of 100k-500k per month

Any help is appreciated.

Cheers!
Click to expand...
Yes for corporate account you need to be MSB registered. Not so for personal account. Try Arrival bank, silvergate bank , signature bank, FV Bank and let us know if you get onboarded.
 
#9
As far as I understand I don't need to be registered with FINSEN if I'm a paxful trader since paxful is already Paxful is already a registered MSB. I'm buying gift cards for crypto, which are considered physical/digital goods not a form of currency. I also live and have my business registered in a state where I don't need a special license for this.
 
#10
You need to register. There are several currently incarcerated Paxful traders who also thought they didn't need to register and learned the hard way. And unless you're in Montana or a state that has guidance saying crypto is not money transmission (like Texas) then you need to register at the state level too. And depending on your state not registering may just be a misdemeanor but 18 U.S.C 1960 effectively federalizes the crime of not registering at the state level and in turns it into a felony. I'm not sure whether selling/buying gift cards counts as a MSB but I would implore you to seek some form of counsel. And please read the past unlicensed money transmitter prosecutions. You will inevitably get a HSI special agent who asks to trade with you and essentially says "bro I acquired these gift cards through fraudulent means" and if you transact with him you can add a money laundering charge to your indictment and probably double your potential sentence.

Paxful should probably do more to make their users aware of the consequences of not registering but of course if they did they would sacrifice a lot of business.

And get ready to deal with persistent account closures for the usual "compliance" reasons. Also unfortunately if you do register as a MSB note that a lot of banks won't want to touch you with a ten foot pole. Even check cashing stores are getting edged out of the system.
 
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#11
Solis500 said:
As far as I understand I don't need to be registered with FINSEN if I'm a paxful trader since paxful is already Paxful is already a registered MSB. I'm buying gift cards for crypto, which are considered physical/digital goods not a form of currency. I also live and have my business registered in a state where I don't need a special license for this.
Click to expand...
Just to be sure, consultant an expert on the subject.Fines can be heavy in the US.
reallyawesome1111 said:
You need to register. There are several currently incarcerated Paxful traders who also thought they didn't need to register and learned the hard way. And unless you're in Montana or a state that has guidance saying crypto is not money transmission (like Texas) then you need to register at the state level too. And depending on your state not registering may just be a misdemeanor but 18 U.S.C 1960 effectively federalizes the crime of not registering at the state level and in turns it into a felony. I'm not sure whether selling/buying gift cards counts as a MSB but I would implore you to seek some form of counsel. And please read the past unlicensed money transmitter prosecutions. You will inevitably get a HSI special agent who asks to trade with and essentially says "bro I acquired these gift cards through fraudulent means" and if you transact with him you can add a money laundering charge to your indictment and probably double your potential sentence.
Click to expand...
Yes , one can never be too careful in the US . OP should get good professional legal advice beforehand.
 
#12
Also, rereading this, if by "gift cards" you mean prepaid visas/mastercard/amex, you are definitely a MSB. You may think you have uncovered a genius arbitrage opportunity because you can buy those prepaid cards from Nigerians on paxful for 15-20% off and only pay the 3% processor fees, but let me tell you that every single merchant processor flags accounts that receive the majority of their payments from prepaid cards. You will churn merchant accounts and will have to continually make new companies and accounts. Also most people don't use companies like Stripe or Square and instead settle on more unconventional ways of processing cards like having an Amazon merchant account or Gumroad or even Onlyfans (of course you also have to pay higher fees). There is definitely some money to be made but you will have to deal with frozen funds and "we are closing your account effective immediately" and a whole host other things that make you wish you just worked a normal job. Sorry to be the bearer of bad news.

There was an insightful comment that was posted here a couple minutes ago but was just deleted. Anyways, moral of the story is processing the cards yourself unless you have a huge business with lots of actual card volume to run them through is probably not gonna work and if you really wanna do this you should think about other creative ways of converting the cards into dollars (buying iphones, ... up to you). Also I know probably no one on this forum cares about this but I would also advise you to ask yourself "How exactly does a 20-something Nigerian male obtain 3000 $100 Visa prepaid cards a week and why is he selling them for a substantial discount?" and consider whether you would like to be the subject of an elder fraud investigation or not.
 
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#13
Currently, paxful is the only peer-to-peer bitcoin marketplace that still supports gift card payments; others have stopped because of the hassle and near impossibility of proving proper account balances till redeemed.There are bad actors out there commiting frauds

reallyawesome1111 said:
"How exactly does a 20-something Nigerian male obtain 3000 $100 Visa prepaid cards a week and why is he selling them for a substantial discount?" and consider whether you would like to be the subject of an elder fraud investigation or not.
Click to expand...
the “Nigerian prince” scam and other cybercrimes
 
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#14
reallyawesome1111 said:
How exactly does a 20-something Nigerian male obtain 3000 $100 Visa prepaid cards a week and why is he selling them for a substantial discount?" and consider whether you would like to be the subject of an elder fraud investigation or not.
Click to expand...
What exactly is the modus operandi of a Nigerian fraudster.why would be want Bitcoins from OP at deep discounts.is he using OP as a scapegoat in some elaborate money laundering scheme ?
 
#15
reallyawesome1111 said:
You need to register. There are several currently incarcerated Paxful traders who also thought they didn't need to register and learned the hard way. And unless you're in Montana or a state that has guidance saying crypto is not money transmission (like Texas) then you need to register at the state level too. And depending on your state not registering may just be a misdemeanor but 18 U.S.C 1960 effectively federalizes the crime of not registering at the state level and in turns it into a felony. I'm not sure whether selling/buying gift cards counts as a MSB but I would implore you to seek some form of counsel. And please read the past unlicensed money transmitter prosecutions. You will inevitably get a HSI special agent who asks to trade with you and essentially says "bro I acquired these gift cards through fraudulent means" and if you transact with him you can add a money laundering charge to your indictment and probably double your potential sentence.

Paxful should probably do more to make their users aware of the consequences of not registering but of course if they did they would sacrifice a lot of business.

And get ready to deal with persistent account closures for the usual "compliance" reasons. Also unfortunately if you do register as a MSB note that a lot of banks won't want to touch you with a ten foot pole. Even check cashing stores are getting edged out of the system.
Click to expand...

Thanks, this is really helpful advice. Do you have any links to stories about the incarcerated Paxful traders? I would like to read up on their cases so I don't make the same mistake.
 
#16
Solis500 said:
Thanks, this is really helpful advice. Do you have any links to stories about the incarcerated Paxful traders? I would like to read up on their cases so I don't make the same mistake.
Click to expand...
https://storage.courtlistener.com/recap/gov.uscourts.txnd.346062/gov.uscourts.txnd.346062.6.0.pdf was a guy on Paxful and Localbitcoins who just went to prison yesterday. He actually scanned the ID and did background checks on all his customers but still was convicted because he didn't register as a MSB.

https://storage.courtlistener.com/recap/gov.uscourts.nhd.56151/gov.uscourts.nhd.56151.1.0.pdf these guys were on Paxful, Localbitcoins and had their own ATMs. They were a reckless and knowingly did business with a guy who said he was a drug dealer but nonetheless they would have been convicted for not registering anyways.

There are others you can look at Search Results for Courts: All › Query: "paxful" AND "money transmitter" › Case Name: united states › Only show results with PDFs: True — 6 Results — CourtListener.com and https://www.courtlistener.com/?q="localbitcoins" AND "money transmitter"&type=r&order_by=score desc&available_only=on&case_name=united states.

"Willfull blindness" may be of interest too. You should also know that people have been convicted of bank and wire fraud for lying to merchant processors about the kinds of business they are processing/miscoding. I am just saying that as someone living in the US you may want to reconsider this kind of business because unlike Europe there are actual penalties here and you can be found guilty of "conspiracy to commit ...." basically anything.
 
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#17
reallyawesome1111 said:
https://storage.courtlistener.com/recap/gov.uscourts.txnd.346062/gov.uscourts.txnd.346062.6.0.pdf was a guy on Paxful and Localbitcoins who just went to prison yesterday. He actually scanned the ID and did background checks on all his customers but still was convicted because he didn't register as a MSB.

https://storage.courtlistener.com/recap/gov.uscourts.nhd.56151/gov.uscourts.nhd.56151.1.0.pdf these guys were on Paxful, Localbitcoins and had their own ATMs. They were a reckless and knowingly did business with a guy who said he was a drug dealer but nonetheless they would have been convicted for not registering anyways.

There are others you can look at Search Results for Courts: All › Query: "paxful" AND "money transmitter" › Case Name: united states › Only show results with PDFs: True — 6 Results — CourtListener.com and https://www.courtlistener.com/?q="localbitcoins" AND "money transmitter"&type=r&order_by=score desc&available_only=on&case_name=united states.

"Willfull blindness" may be of interest too. You should also know that people have been convicted of bank and wire fraud for lying to merchant processors about the kinds of business they are processing/miscoding. I am just saying that as someone living in the US you may want to reconsider this kind of business because unlike Europe there are actual penalties here and you can be found guilty of "conspiracy to commit ...." basically anything.
Click to expand...
Maybe he can shift his residency to a more favourable jurisdiction ? unless his gift cards are redeemable only in the US
 
#18
Solis500 said:
I'm a US citizen living in the United States. I need a bank account to make transfers to bitcoin exchanges. I will be selling crypto on Paxful and will be getting paid via ACH transfers from a merchant processor.

I need is the bank allow me to:

1) Receive Wires or ACH transfers domestically and abroad.

2) Send those funds to a cryptoexchanges like Coinbase, Binance, Paxful in volumes of 100k-500k per month

Any help is appreciated.

Cheers!
Click to expand...
Can you DM me
 
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