A federal judge has issued an order restricting former Binance CEO Changpeng Zhao (CZ) from leaving the U.S. until the court determines whether to approve the government's motion to force the ex-Binance boss to stay in the U.S. until sentencing.
CZ Cannot Leave the U.S. for Now
A federal judge has barred former Binance CEO Changpeng Zhao (CZ) from leaving the U.S. until the court has made a decision on the U.S. government's motion to prevent his return to the United Arab Emirates (UAE) before sentencing.
"This matter comes before the Court upon the United States' motion for review of Magistrate Judge's ruling on defendant [CZ]'s presentencing travel restrictions," states the order signed by District Judge Richard A. Jones on Monday. "Having considered the briefing, and the files and pleadings herein, the Court determines it will review the decision of Magistrate Judge Brian A. Tsuchida permitting Defendant to return to the United Arab Emirates pending sentencing pursuant to the conditions of his appearance bond." The order continues:
It is ordered that the condition permitting Defendant to return to the UAE pending sentencing is STAYED until such time as this Court resolves the government's motion for review.
Last week, Zhao pleaded guilty to failing to maintain an effective anti-money laundering program and stepped down as the CEO of the world's largest cryptocurrency exchange. The government also filed a parallel information against Binance for failing to comply with provisions of the Bank Secrecy Act and U.S. sanctions law.
The Settlement and Penalties
As part of the settlements with the U.S. Department of Justice (DOJ), the Treasury Department, the Financial Crimes Enforcement Network (FinCEN), and the Commodity Futures Trading Commission (CFTC), Binance and Zhao will pay a historic sum of more than $4.3 billion.
The Controversy Surrounding CZ's Travel Restrictions
Magistrate Judge Tsuchida issued a release order last week with bail conditions, allowing the former Binance chief to return to the UAE while awaiting sentencing. However, the U.S. government then filed a motion to prevent Zhao from returning home before sentencing. In response, CZ has asked the court to reject the government's motion, contending that Judge Tsuchida determined he poses no flight risk, having voluntarily appeared before the court to take responsibility and plead guilty.
The U.S. government states in its motion that the former Binance chief executive may face up to 18 months in prison. Under Magistrate Judge Tsuchida's order, the bail conditions require that CZ "post a $175 million personal recognizance bond, secured by two guarantors with cash pledges of $100,000 and $250,000, respectively, and a third guarantor with real property located in Los Angeles, California, valued at more than $5 million," his legal team described.
What are your thoughts on CZ being able to leave the U.S. and return home to the UAE while waiting for sentencing? Share your opinion in the comments section below.
Frequently Asked Questions
How much of your portfolio should you hold in precious metals
To answer this question, we must first understand what precious metals are. Precious Metals are elements that have a very high relative value to other commodities. This makes them valuable in investment and trading. Gold is currently the most widely traded precious metal.
There are also many other precious metals such as platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also not affected by inflation and depression.
The general trend is for precious metals to increase in price with the overall market. However, the prices of precious metals do not always move in sync with one another. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors expect lower interest rates which makes bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. These precious metals are rare and become more costly.
It is important to diversify your portfolio across precious metals in order to maximize your profit from precious metals investments. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
Is physical gold allowed in an IRA.
Not only is gold paper currency, but it's also money. Gold is an asset people have used for thousands years as a place to store value and protect their wealth from economic uncertainty and inflation. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
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How does a gold IRA work?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
You can purchase gold bullion coins in physical form at any moment. You don’t have to wait to begin investing in gold.
An IRA allows you to keep your gold forever. Your gold assets will not be subjected tax upon your death.
Your gold is passed to your heirs without capital gains tax. You don't need to include your gold in your final estate report, as it isn't part of the estate.
To open a IRA for gold, you must first create an individual retirement plan (IRA). After you have done this, an IRA custodian will be assigned to you. This company acts like a middleman between the IRS and you.
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Taxes will apply to gold that you take out of an IRA. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.
If you only take out a very small percentage of your income, you may not need to pay tax. However, there are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
It's best not to take out more 50% of your total IRA investments each year. You could end up with severe financial consequences.
What precious metal is best for investing?
This question is dependent on the amount of risk you are willing and able to accept as well as the type of return you desire. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. You might not want to invest in gold if you're looking for quick returns. If you have time and patience, you should consider investing in silver instead.
If you don’t want to be rich fast, gold might be the right choice. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.
Should you open a Precious Metal IRA
Before opening an IRA, it is important to understand that precious metals aren't covered by insurance. There is no way to recover money that you have invested in precious metals. This includes any loss of investments from theft, fire, flood or other circumstances.
Protect yourself against this type of loss by investing in physical gold or silver coins. These items have been around thousands of years and are irreplaceable. They are likely to fetch more today than the price you paid for them in their original form.
Consider a reputable business that offers low rates and good products when opening an IRA. You should also consider using a third party custodian to protect your assets and give you access at any time.
Do not open an account unless you're ready to retire. Don't forget the future!
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's Not Exactly Lawful – WSJ
- Fraud Advisory: Precious Metals Fraud
By: Kevin Helms
Title: Judge Bars Former Binance CEO From Leaving US as the Court Weighs Government’s Request
Sourced From: news.bitcoin.com/judge-bars-former-binance-ceo-from-leaving-us-as-the-court-weighs-governments-request/
Published Date: Tue, 28 Nov 2023 02:30:13 +0000