How do people withdraw money from crypto wallets avoiding explaining it to the bank?

Just keep your amounts under 10k and send it to your bank. Nobody is going to come after you for a couple grand a month in crypto withdrawals. OR you can use Bisq which is like localbitcoins where you sell your BTC and they Zelle you the cash and its an escrow system. Bisq.network or Spritz Finance / Gnosis Card these services let you connect a decentralized, self-custody wallet (like MetaMask) directly to a debit card or use crypto to pay real-world bills (like credit cards or utilities) straight from your crypto balance.

Are you saying this from the perspective of living in the United States? Because the thing is that where I live, which is Canada, the majority of all p2p platforms including Bisq are restricted. And Zelle wouldn't be available for me either. Are there any other alternatives?

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Get a trusted international friend with a passport. Send him the USDT and let him send you back in your wallet. Withdraw the all of it to bank. The bank will freeze it immediately and demand an explanation. Tell them this is a gift from your friend. You will be told to provide your friend's details including passport number and phone number. If your friend is asked where he got the cash, he will tell them he gets it from Agriculture, crypto trading and his permanent job. They will immediately treat the money as a gift from a friend, and they will lift the freeze. They won't tax it either. I can be that friend if you talk to me. i have done this severally.

Yeah, you didn't clarify in OP. You can use Bisq in canada and Interac e-transfer. Metamask card works in Canada, also solcard.cc .. you basically deposit crypto and you can use your debit card. Also look at bullbitcoin . c o m

About P2P, I couldn't find any p2p marketplaces that would support USDC AND that would be available in Canada, which is where I reside. By "cash by mail", do you mean like literally sending cash through regular mail? And about cash in person, that person lives very far away, so it's not an option

just buy the multilple mules account and recieve money in them btw if you want to buy any contact me i offer this service

Hey we're available in Canada and we currently have crypto to cryto listings, /d/BorsoMonero or https://borsomonero.com

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Im in canada if anyone needs help