Can Sun's Shocking Revelation
Can Sun, the former general counsel of FTX, testified in federal court on Thursday, revealing his shock upon discovering that FTX founder Sam Bankman-Fried had secretly transferred billions of dollars in customer funds to his hedge fund, Alameda Research. Sun told prosecutors that he resigned from his position the day after uncovering the extent of the misappropriation, with spreadsheets revealing that $7 billion was missing.
FTX's Secret Transfers to Alameda Research
Sun informed federal prosecutors that he had no knowledge of FTX's secret transfers of customer funds to Bankman-Fried's trading firm, Alameda Research. He expressed his astonishment at discovering the missing funds, testifying that $7 billion had been misappropriated. Sun's testimony was made public by Matthew Russell Lee from the Inner City Press.
Sun's Resignation and Bankman-Fried's Response
Despite joining FTX from the law firm Fenwick & West, Sun decided to resign as general counsel the day after learning about the fraudulent transfers. He claimed to have approached Bankman-Fried regarding his concerns but received a notably muted response. Sun stated that he expected a bigger reaction, but Bankman-Fried simply responded with, "Got it," showing no surprise.
Legal Justification and Lack of Explanation
Sun recalled an incident where SBF asked him to provide a "legal justification" for the missing billions after a private equity firm raised questions. However, when asked if Bankman-Fried explained the transfers, Sun answered, "No. He did not tell me anything." This lack of explanation raised further suspicions.
Cross-Examination and Non-Prosecution Agreement
During the cross-examination, SBF's attorney, Mark Cohen, discussed Sun's FTX employment contract, which revealed $3.5 million in loans and bonuses from Alameda Research. When asked if there was a connection between the transfers and the employment contract, Sun responded, "Well, they were both about my employment."
Sun admitted to signing a non-prosecution agreement with prosecutors, which required him to provide truthful testimony. Cohen pressed Sun, asking if he could be prosecuted for not telling the truth, to which Sun responded with a simple "yes." Cohen also inquired about the use of encrypted messaging apps within the legal department.
Cooperating Executives and Bankman-Fried's Potential Conviction
Sun's testimony follows the cooperation of former FTX and Alameda executives Caroline Ellison, Gary Wang, and Nishad Singh, who pleaded guilty and provided information to prosecutors. If convicted of fraud and conspiracy charges, Bankman-Fried could face a sentence of over 100 years in prison, although he has pleaded not guilty.
What are your thoughts on Sun's testimony and the missing $7 billion? Share your opinions in the comments section below.
Frequently Asked Questions
How much gold should your portfolio contain?
The amount of capital required will affect the amount you make. For a small start, $5k to $10k is a good range. Then as you grow, you could move into an office space and rent out desks, etc. This way, you don't have to worry about paying rent all at once. Rent is only paid per month.
Also, you need to think about the type of business that you are going to run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. So if you do this kind of thing, you need to consider how much income you expect from each client.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. You might get paid only once every six months.
Before you can determine how much gold you'll need, you must decide what type of income you want.
I suggest starting with $1k-2k gold and building from there.
What amount should I invest in my Roth IRA?
Roth IRAs are retirement accounts where you deposit your own money tax-free. These accounts are not allowed to be withdrawn before the age of 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. You cannot touch your principal (the amount you originally deposited). This means that you can't take out more money than you originally contributed. If you wish to withdraw more than you originally contributed, you will have to pay taxes.
The second rule says that you cannot withdraw your earnings without paying income tax. So, when you withdraw, you'll pay taxes on those earnings. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. Let's say you earn $10,000 each year after contributing. This would mean that you would have to pay $3,500 in federal income tax. So you would only have $6,500 left. You can only take out what you originally contributed.
So, if you were to take out $4,000 of your earnings, you'd still owe taxes on the remaining $1,500. In addition, 50% of your earnings will be subject to tax again (half of 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
There are two types: Roth IRAs that are traditional and Roth. Traditional IRAs allow for pre-tax deductions from your taxable earnings. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs do not allow you to deduct your contributions. You can withdraw your entire contribution, plus accrued interests, after you retire. There is no minimum withdrawal limit, unlike traditional IRAs. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
How is gold taxed in Roth IRA?
The tax on an investment account is based on its current value, not what you originally paid. If you invest $1,000 in mutual funds or stocks and then later sell them, all gains are subjected to taxes.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
These rules vary from one state to another. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you up to April 1st. And in New York, you have until age 70 1/2 . To avoid penalties, plan ahead so you can take distributions at the right time.
Who is entitled to the gold in a IRA that holds gold?
The IRS considers an individual who owns gold as holding “a form of money” subject to taxation.
To take advantage of this tax-free status, you must own at least $10,000 worth of gold and have been storing it for at least five years.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to use it.
If you plan to eventually sell the gold, you'll need a report on its value. This could impact the amount of capital gains taxes your owe if you cash in your investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
Statistics
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- 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)
External Links
cftc.gov
forbes.com
irs.gov
bbb.org
How To
The History of Gold as an Asset
From ancient times to the beginning of the 20th century, gold was used as a currency. It was accepted worldwide and became popular due to its durability, purity, divisibility, uniformity, scarcity, and beauty. In addition, because of its value, it was traded internationally. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
In the 1860s, the United States began to issue American coins made from 90% copper, 10% Zinc, and 0.942 Fine Gold. This resulted in a decline of foreign currency demand and an increase in the price. This was when the United States started minting large quantities of gold coins. The result? Gold prices began to fall. They needed to pay off debt because they had too much money coming into circulation. To do this, they decided that some of their excess gold would be sold back to Europe.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. Many European countries began to use paper money and stopped accepting gold as payment after World War I. Since then, the price of gold has increased significantly. Even though the price of gold fluctuates, it remains one the best investments you can make.
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By: Jamie Redman
Title: Former FTX Lawyer Testifies About Misappropriated Funds
Sourced From: news.bitcoin.com/ex-general-counsel-sheds-light-on-ftxs-7b-gap-in-bankman-fried-fraud-trial/
Published Date: Sun, 22 Oct 2023 07:30:59 +0000
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