The Bankman-Fried Saga: From Crypto King to the Courtroom
Federal prosecutor Nicolas Roos made a compelling case this week, alleging that Sam Bankman-Fried, the CEO of cryptocurrency exchange FTX, stole billions of dollars from customers and repeatedly lied to conceal his actions. Roos argued that Bankman-Fried's elaborate web of deceit eventually unraveled, leaving a trail of victims in its wake.
According to Roos, customers began encountering difficulties when attempting to withdraw funds from FTX nearly a year ago. As it turned out, FTX was on the brink of bankruptcy, with a staggering $10 billion missing. The prosecutor presented this information to the court on November 1, 2023, and his closing argument was subsequently published by Matthew Russell Lee of the Inner City Press.
Roos contended that Bankman-Fried used customer funds to cover personal expenses, purchase property, and even make political donations, all while knowingly engaging in a "pyramid of deceit." He alleged that Bankman-Fried was fully aware that his actions were wrong but believed that he could escape the consequences.
Addressing the jurors, Roos declared, "He thought he was smarter and could find a way out of it. Today, that ends."
The prosecutor further revealed that Bankman-Fried had established a covert system that allowed his quantitative trading firm, Alameda Research, to access FTX customer funds without any risk of liquidation. Roos unequivocally labeled this as theft, stating, "[It's] fraud. It's stealing, plain and simple." He also accused Bankman-Fried of repeatedly lying on the witness stand, struggling to recall even the most basic details about his own business. Roos asserted, "Over three days, he took the stand and he lied. You would have to disregard all the evidence to believe otherwise."
Roos provided a detailed account of how Bankman-Fried allegedly utilized FTX customer money to repurchase FTX stock and acquire luxury properties, despite receiving warnings from subordinates that such actions were ill-advised. The prosecutor argued that Bankman-Fried intentionally omitted negative information from balance sheets shared with investors and lenders, classifying it as fraudulent behavior. According to the U.S. attorney, "He took the money and played roulette with it. He was stealing."
Furthermore, Roos dismissed Bankman-Fried's claims of acting in good faith, pointing to deleted communications and the CEO's own admission of acknowledging issues but proceeding regardless. Roos argued that Bankman-Fried's explanations regarding margin lending were false excuses, emphasizing that customers had to opt into these programs separately. In conclusion, Roos urged the jurors to prioritize the evidence over Bankman-Fried's narrative, asserting, "He lied. He is guilty. Reach that verdict: that he is guilty."
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
How much is gold taxed under a Roth IRA
An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
You don't pay tax if you have the money in a traditional IRA/401k. Only earnings from capital gains and dividends are subject to tax. These taxes do not apply to investments that have been held for more than one year.
These accounts are subject to different rules depending on where you live. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . You can delay until April 1st in Massachusetts. And in New York, you have until age 70 1/2 . To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
What precious metal should I invest in?
This question depends on how risky you are willing to take, and what return you want. While gold is considered a safe investment option, it can also be a risky choice. If you are looking for quick profits, gold might not be the right investment. If you have the patience to wait, then you might consider investing in silver.
If you don't care about getting rich quickly, gold is probably the way to go. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.
Are You Ready to Invest in Gold?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. If you are unsure which option to choose, consider investing in both options.
Gold offers potential returns and is therefore a safe investment. It is a good choice for retirees.
While most investments offer fixed rates of return, gold tends to fluctuate. Therefore, its value is subject to change over time.
This does not mean you shouldn’t invest in gold. You should just factor the fluctuations into any overall portfolio.
Another advantage of gold is its tangible nature. Gold is more convenient than bonds or stocks because it can be stored easily. It is also easily portable.
You can always access gold as long your place it 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 tends to rise when the stock markets fall.
Another advantage to investing in gold is the ability to sell it whenever you wish. As with stocks, your position can be liquidated whenever you require cash. It doesn't matter if you are retiring.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Don't purchase too much at once. Begin by buying a few grams. Continue adding more as necessary.
Don't expect to be rich overnight. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
Even though gold is not the best investment, it could be an excellent addition to any retirement plan.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.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)
- 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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (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)
External Links
forbes.com
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
bbb.org
investopedia.com
How To
How to keep physical gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. However, this method comes with many risks because there's no guarantee that these companies will continue to survive. Even if they survive, there's always the risk that they will lose money due fluctuations in gold prices.
You can also buy gold directly. This requires you to either open up your account at a bank or an online bullion dealer or simply purchase gold from a reputable seller. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It's also easier to see how much gold you've got stored. The receipt will show exactly what you paid. You'll also know if taxes were not paid. There's also less chance of theft than investing in stocks.
However, there are disadvantages. There are some disadvantages, such as the inability to take advantage of investment funds and interest rates from banks. You won't have the ability to diversify your holdings; you will be stuck with what you purchased. Finally, the taxman may ask you about where you have put your gold.
BullionVault.com offers more information on buying gold for an IRA.
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By: Jamie Redman
Title: FTX Boss Sam Bankman-Fried Accused of Stealing Billions from Customers, Prosecutors Argue
Sourced From: news.bitcoin.com/prosecutor-ftx-boss-sam-bankman-fried-stole-billions-from-customers-lied-about-it/
Published Date: Thu, 02 Nov 2023 20:00:05 +0000
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