The Crypto Millionaire's Guide to Digital Asset Protection

Traditional asset protection schemes are designed to prevent the businessman from access to his assets by litigious business partners and angry wives. In contrast, modern digital asset protection safeguards crypto assets from surveillance, bans, taxation, and sanctions.

By 2023, there are a large number of individuals around the world with substantial wealth in digital assets. More likely Bitcoin and Ethereum than Monero, but perhaps NFTs, stablecoins like Tether and USDC, or exotic altcoins like Ripple, Cardano, BNB, Solana, Dodgecoin, etc. There is a high probability that these cryptocurrencies are not currently valued at their peak. A high percentage of cryptomillionaires have suffered significant losses as of today.

Cryptoassets have their own coin history. They were acquired at a certain point in time, have certain values in the private accounting of the owner. It may be possible to trace them back to the current owner, especially if they were acquired through one of the highly regulated crypto exchanges. The investor has a certain interest in secrecy and privacy, be it from family and friends, be it from third parties or even from the authorities.

There is an expectation that Bitcoin, altcoin & Co. will increase in value quite significantly in a year or two. In that case, there will be tax consequences that should be included in one's planning today.  Another plausible expectation is that economic conditions will deteriorate dramatically. Keywords here are inflation, stagflation, recession, bank runs, and economic crash.

For the wealthy owner of digital assets, the pressing question is whether there is a need for action. Need for action in terms of correcting past mistakes, need for action for the current situation, or attractive options for the future. There is free advice on the Internet, but it points in every conceivable direction and therefore does not help reliably. With the tried and tested in-house lawyer and in the circle of friends and family, the contact persons become confidants, which may also not be a good idea.

Nobody knows what the future will bring. Capital export bans for Bitcoin & Co. are not announced for the long term, crypto taxes can even be introduced retroactively. This makes effective asset protection all the more important. Is it possible to present crypto assets as having been lost in a boating accident?