Replying to Avatar chancellor

anyone have insight on this?

If you send 10 BTC (Coinbase or other KYC exchange) > into a non kyc lightning wallet, let's say WoS or Bitcoin Jungle app, then you zap it to another LN wallet > then send it to an on-chain address back into self custody, are these the same UTXOs in the end? Does this break KYC? I wouldn't think you'd get the same sats back at then end.

Seems like coinjoins or whirlpool but without the high fee assuming you do this in a low fee Environment.

Is this dumb?
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Hurvajs Rumcajs 1y ago

This might be treated as a tax event.

"Sir, have you sold your bitcoin to an unidentified wallet? Please provide the reciever information and pay the fine, taxes etc."

The "travel rule violation" or something could used againt you in the future.

The point is not to buy bitcoin tied to you in the first place.

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chancellor 1y ago

That makes a lot of sense. I recently received a 1099-B for Strike even though I didn't sell any BTC. There are two transactions listed as "sold or disposed" my BTC either went to cold storage or to a relative. The two UTXOs that went to a relative are the ones showing up on the form 1099.

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Hurvajs Rumcajs 1y ago

The state can always come up with something (esp. in desperation). The only defense is to hide what you're doing and appear as grey as possible.

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chancellor 1y ago

Agreed