Questions and Answers > EB-5 Investments

How can we prove the source for funds from bitcoin investment for our EB-5 application?

We were planning to apply for an E-2 or EB-5 visa by the end of this month, but we have questions on how to prove the source of investment funds. Our investment capital comes from our investment in bitcoins. It is quite hard to proof anything with it since it is meant to be quite anonymous. What documents can we use to prove the source of funds?

Answers

• A Olusanjo Omoniyi

  Immigration Attorney

  Answered on July 27, 2020

  There are two sources that must be proven. First, you need to address the issue of how you to buy/acquire those Bitcoins, when and where you bought those Bitcoins, how you paid for the purchase, provide of how much you paid, etc. Secondly, Bitcoins are usually converted (sold) to hard currency, you should provide all necessary documentation associated with the sale such as the name of purchaser, how Bitcoins were sold, the amount realized, compliance with laws of the jurisdiction where the sales took place including payment of appropriate taxes, compliance with appropriate securities laws. Advisably, consult legal and other experts associated with Bitcoins who can help assemble relevant documentation.

• Belma Demirovic Chinchoy

  Immigration Attorney

  Answered on July 24, 2020

  Bing unonymous does not mean untraceable; bitcoin address and user can be traced.

• Dale Schwartz

  Immigration Attorney

  Answered on July 24, 2020

  Can you show the original amount invested and where your money cane from? Then show some accounting from the sale of the bitcoins (if they were sold) or credit for the investment of the bitcoins and proof of their market value on the date they were invested.

• Salvatore Picataggio

  Immigration Attorney

  Answered on July 24, 2020

  You have to stick with more traditional accounts for now. If the bitcoin is claimed on tax returns though and you can show some kind of account statement with the funding in there, it is possible that you can make a decent argument.

• Bernard P Wolfsdorf

  Immigration Attorney

  Answered on July 24, 2020

  The key is to identify how cryptocurrency is classified within the regulatory framework of the particular country and look for the record that would traditionally accompany commercial transactions involving this type of goods. It may be possible to obtain sales receipts, sale-purchase agreements, or tax reports that reflect either capital gain or ordinary income consistent with the volume of the manifested digital trade. The best way to present the evidence is to simplify this exchange by describing it in the terms usually applicable to the conventional transactions. Even though sale receipt or tax reports alone may not readily indicate connection between particular transactions converting cryptocurrency into cash and accumulated wealth, the nexus may be established through the collateral evidence such as authenticated bank statements reflecting credit of the proceeds from the sale of cryptocurrency that may be matched with "fair market value" of the bitcoin at the date the payment was received and linked to the income reported in the domestic tax declaration of the investor. For cryptocurrency exchanges the record may be corroborated by CSV files.