Xapo May Store $10B Worth BTC in a Bunker, Bloomberg Says

According to the clients of the compny, Xapo stores BTC in former military bunker in mountains of Switzerland
10 May 2018   1333

On the servers of the Xapo, located in a specially equipped bunker, about 7% of all currently existing bitcoins are stored in the equivalent of $ 10 billion. Meanwhile, the size of the startup deposits exceeds the amounts that are on the accounts of 98% of US banks. The two clients told this to Bloomberg.

According to the CEO of CoinShares, Ryan Radloff, who deposited about $ 500 million in crypto-currency for safekeeping in the bunker, advanced electronic protections allow Xapo to safely store all private cryptographic keys of customers.

Everyone who isn’t keeping keys themselves is keeping them with Xapo. You couldn’t pay me to keep it with a bank.
 

Ryan Radloff

CoinShares

Cold storage of bitcoins is located in a former military bunker in the mountains of Switzerland.

Getting bitcoins from there takes about two days. First, the company identifies the client and approves his request, and then manually signs transactions with private keys located at different points in the bunker.

Every part of their DNA is geared to security. Whenever we make big transfers they FaceTime us, we have duress words, if it’s big enough they’ll fly out to see us.
 

Sean Clark

Founder, First Block

In addition, fingerprint scanners in the repository are equipped with heart rate sensors to exclude the possibility of using amputated hands.  

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   132

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.
 

Ron Gross

Bitcoin investor from Israel

 

Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.