A Mountain of Lies
In a recent closing argument, federal prosecutor Nicolas Roos accused Sam Bankman-Fried, the CEO of cryptocurrency exchange FTX, of stealing billions of dollars from customers and engaging in a series of deceptive actions to cover it up. According to Roos, Bankman-Fried's actions have left a trail of victims in their wake.
The Unraveling of FTX
Roos revealed that customers had been trying to withdraw funds from FTX for almost a year, but their requests went unanswered as the exchange declared bankruptcy with $10 billion missing. These allegations were presented to the court on November 1, 2023, as part of the federal government's closing argument.
A Pyramid of Deceit
Roos claimed that Bankman-Fried had misappropriated FTX customer funds to cover personal expenses, purchase properties, and make political donations. This intricate web of deceit eventually collapsed, according to Roos. Despite knowing that his actions were wrong, Bankman-Fried believed he could avoid the consequences.
A Secret System
Roos further alleged that Bankman-Fried had set up a secret system within his quantitive trading firm, Alameda Research, to siphon off FTX customer funds without any risk of liquidation. This, according to Roos, amounts to fraud and plain theft. Furthermore, Bankman-Fried was accused of repeatedly lying on the stand and being unable to recall important details about his own business.
A Roulette Game
Bankman-Fried's alleged misuse of FTX customer funds extended to buying back FTX stock and acquiring luxury properties, despite warnings from subordinates that these actions were unwise. Roos also claimed that Bankman-Fried deliberately omitted negative information from balance sheets provided to investors and lenders, constituting further fraudulent behavior.
A Good Faith Defense Rejected
Roos completely dismissed Bankman-Fried's claim of acting in good faith, pointing to deleted communications and admissions of knowledge of wrongdoing. The prosecutor also highlighted that customers had to opt into margin programs separately, debunking Bankman-Fried's explanation for his actions. In conclusion, Roos urged the jurors to consider the evidence and reach a guilty verdict.
What are your thoughts on the federal prosecutor's closing arguments against Sam Bankman-Fried? Share your opinions in the comments section below.
Frequently Asked Questions
Can I buy gold with my self-directed IRA?
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals are allowed to contribute $1,000 each ($2,000 if married or filing jointly) to a Roth IRA.
You should consider buying physical gold bullion if you decide to invest in it. Futures contracts are financial instruments based on the price of gold. You can speculate on future prices, but not own the metal. But, physical bullion is real bars of gold or silver that you can hold in one’s hand.
How can I withdraw from a Precious metal IRA?
First, decide if it is possible to withdraw funds from an IRA. Then make sure you have enough cash to cover any fees or penalties that may come with withdrawing funds from your retirement plan.
If you are willing to pay a penalty for early withdrawal, you should consider opening a taxable brokerage account instead of an IRA. If you choose this option, you’ll also need to consider taxes owed on the amount withdrawn.
Next, calculate how much money your IRA will allow you to withdraw. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you determine the percentage of your total saved money you want to convert into cash, then you need to choose which type IRA you will use. Traditional IRAs permit you to withdraw your funds tax-free once you turn 59 1/2. Roth IRAs have income taxes upfront, but you can access the earnings later on without paying additional taxes.
Once these calculations have been completed you will need to open an account with a brokerage. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
You will need a safe place to store your coins when you are ready to withdraw from your precious metal IRA. Some storage areas will accept bullion, while others require you to purchase individual coins. Before you choose one, weigh the pros and cons.
Bullion bars are easier to store than individual coins. However, you’ll need to count every coin individually. However, keeping individual coins in a separate place allows you to easily track their values.
Some people prefer to keep their coins in a vault. Others prefer to store their coins in a vault. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
Are You Ready to Invest in Gold?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. Consider investing in both.
Not only is it a safe investment but gold can also provide potential returns. This makes it a worthwhile choice for retirees.
While most investments offer fixed rates of return, gold tends to fluctuate. Because of this, gold’s value can fluctuate over time.
This doesn’t mean that you should not invest in gold. Instead, it just means you should factor the fluctuations into your overall portfolio.
Another benefit to gold? It’s a tangible asset. Gold is much easier to store than bonds and stocks. It can also be carried.
You can always access your gold as long as it is kept safe. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. Gold prices are likely to rise with other commodities so it is a good way of protecting against rising costs.
You’ll also benefit from having a portion of your savings invested in something that isn’t going down in value. Gold usually rises when stocks fall.
Investing in gold has another advantage: you can sell it anytime you want. As with stocks, your position can be liquidated whenever you require cash. You don’t even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn’t try to put all of your eggs into one basket.
Do not buy too much at one time. Start by purchasing a few ounces. You can add more as you need.
Keep in mind that the goal is not to quickly become wealthy. It is to create enough wealth that you no longer have to depend on Social Security.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
Can I keep a Gold ETF in a Roth IRA
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
A traditional IRA allows contributions from both employee and employer. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual’s hands.
An Individual Retirement Annuity (IRA) is also available. You can make regular payments to your IRA throughout your life, and you will also receive income when you retire. Contributions to IRAs will not be taxed
How much gold should your portfolio contain?
The amount of capital that you require will determine how much money you can make. A small investment of $5k-10k would be a great option if you are looking to start small. As you grow, you can move into an office and rent out desks. So you don’t have all the hassle of paying rent. Rent is only paid per month.
It’s also important to determine what type business you’ll run. My company is a website creator. We charge our clients about $1000-2000 per monthly depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. You may get paid just once every 6 months.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I recommend starting with $1k-$2k in gold and working my way up.
Statistics
- 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)
- 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)
- If you take distributions before hitting 59.5, you’ll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
