Introduction
During an ongoing hearing, federal prosecutors questioned Sam Bankman-Fried about his practices of deleting messages and the alleged use of customer funds while he served as the CEO of FTX, a now-bankrupt crypto exchange.
Sam Bankman-Fried's Use of Encrypted Messaging App
Prosecutors focused on Bankman-Fried's use of the encrypted messaging app Signal and his decision to enable the auto-delete feature in 2021. Bankman-Fried stated that he did not seek specific legal approval for this feature but believed it was allowed under FTX's document retention policy implemented that year.
Preservation of Messages
When asked if Bankman-Fried should have preserved messages with former Alameda CEO Caroline Ellison, including financial spreadsheets, he acknowledged that verbal discussions were not required to be reported. However, Bankman-Fried did not recall specific conversations about shutting down Alameda and its reported $13 billion hole.
FTX Customer Funds and North Dimension Bank Accounts
The prosecutors also inquired about FTX customer funds being transferred through Alameda entity North Dimension bank accounts. Bankman-Fried signed documents listing it as a trading firm but claimed he was not aware of it actually conducting trades. He was uncertain if he had discussed the use of the account to accept customer funds with lawyers.
Discussion with Lawyers
Bankman-Fried denied discussing with lawyers that the funds were coming from FTX customer accounts, stating that he did not characterize it that way. He maintained his belief that he did not embezzle customer assets and expressed this sentiment voluntarily during his testimony.
The Defense's Response
Bankman-Fried's lawyer, Mark Cohen, reminded him that he was not obligated to answer every question. The defense emphasized the length of the proceedings and Bankman-Fried's presence in court for four weeks.
Upcoming Proceedings
The proceedings, taking place in Judge Kaplan's courtroom, are scheduled to resume on Friday morning Eastern Time (ET). The prosecution team is expected to continue their extensive line of inquiry. Despite facing multiple charges, Bankman-Fried has pleaded not guilty to all allegations. Notably, the federal prosecutors conducted their interrogation without a jury present.
Conclusion
What are your thoughts on Bankman-Fried's testimony and cross-examination by federal prosecutors? Feel free to share your opinions and insights in the comments section below.
Frequently Asked Questions
Is it a good idea to open a Precious Metal IRA
You should be aware that precious metals cannot be covered by insurance. There is no way to recover money that you have invested in precious metals. This includes all investments that are lost to theft, fire, flood, or other causes.
You can protect yourself against such losses by purchasing physical gold and silver coins. These items have been around thousands of years and are irreplaceable. These items are worth more today than they were when first produced.
When opening an IRA account, make sure you choose a reputable company offering competitive rates and high-quality products. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
You won't get any returns until you retire if you open an account. So, don't forget about the future!
Is buying gold a good retirement plan?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
Physical bullion bar is the best way to invest in precious metals. But there are many other options for investing in gold. You should research all options thoroughly before making a decision on which option you prefer.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. Owning gold stocks should work well if you need cash flow from your investment.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs can include stocks of precious metals refiners and gold miners.
How much gold do you need in your portfolio?
The amount of capital required will affect the amount you make. If you want to start small, then $5k-$10k would be great. As you grow, you can move into an office and rent out desks. Renting out desks and other equipment is a great way to save money on rent. Rent is only paid per month.
It is also important to decide what kind of business you want to run. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. So if you do this kind of thing, you need to consider how much income you expect from each client.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. You might get paid only once every six months.
So you need to decide what kind of income you want to generate before you know how much gold you will need.
I recommend starting with $1k-$2k of gold and growing from there.
How does a gold IRA account work?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
Physical gold bullion coin can be purchased at any time. You don't have a retirement date to invest in gold.
The beauty of owning gold as an IRA is you can hold on to it forever. Your gold assets will not be subjected tax upon your death.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
To open a IRA for gold, you must first create an individual retirement plan (IRA). After you do this, you will be granted an IRA custodian. This company acts as a mediator between you, the IRS.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reporting.
After you have established your gold IRA you will be able purchase gold bullion coin. Minimum deposit required is $1,000 If you make more, however, you will get a higher interest rate.
Taxes will apply to gold that you take out of an IRA. You'll have to pay income taxes and a 10% penalty if you withdraw the entire amount.
You may not be required to pay taxes if you take out only a small amount. However, there are some exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
You shouldn't take out more then 50% of your total IRA assets annually. A violation of this rule can lead to severe financial consequences.
What are the pros and disadvantages of a gold IRA
The main advantage of an Individual Retirement Account (IRA) over a regular savings account is that you don't have to pay taxes on any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. This type of investment has its downsides.
If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. You will likely have to pay a penalty fee if you withdraw funds from an IRA.
The downside is that managing your IRA requires fees. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
If you prefer to keep your money outside a bank, you'll need to purchase insurance. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
If you decide to open a gold IRA, it is important to know how much you can use. Some providers limit the number of ounces of gold that you can own. Others allow you to pick your weight.
You'll also need to decide whether to buy physical gold or futures contracts. The price of physical gold is higher than that of gold futures. Futures contracts provide flexibility for purchasing gold. Futures contracts allow you to create a contract with a specified expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. The policy does not cover natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
You should also consider the cost of storage for your gold. Insurance won't cover storage costs. Banks charge between $25 and $40 per month for safekeeping.
You must first contact a qualified custodian before you open a gold IRA. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians aren't allowed to sell your assets. They must instead keep them for as long as you ask.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. Your monthly investment goal should be stated.
After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. Once the company has received your application, they will review it and send you a confirmation email.
When opening a gold IRA, you should consider using a financial planner. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can also help you lower your expenses by finding cheaper alternatives to purchasing insurance.
What Does Gold Do as an Investment Option?
The supply and demand for gold affect the price of gold. It is also affected negatively by interest rates.
Due to limited supplies, gold prices are subject to volatility. There is also a risk in owning gold, as you must store it somewhere.
How much money should my Roth IRA be funded?
Roth IRAs can be used to save taxes on your retirement funds. These accounts cannot be withdrawn until you turn 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, you can't touch your principal (the initial amount that was deposited). This means that you can't take out more money than you originally contributed. You must pay taxes on the difference if you want to take out more than what you initially contributed.
You cannot withhold your earnings from income taxes. Also, taxes will be due on any earnings you take. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's say you earn $10,000 each year after contributing. Federal income taxes would apply to the earnings. You would be responsible for $3500 You would have $6,500 less. Since you're limited to taking out only what you initially contributed, that's all you could take out.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). So, even though you ended up with $7,000 in your Roth IRA, you only got back $4,000.
There are two types if Roth IRAs, Roth and Traditional. A traditional IRA allows you to deduct pre-tax contributions from your taxable income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. There are no restrictions on the amount you can withdraw from a Traditional IRA.
Roth IRAs won't let you deduct your contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. There is no minimum withdrawal required, unlike a traditional IRA. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
Statistics
- 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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
