Prosecutors Question Bankman-Fried's Message Deletion Practices
Sam Bankman-Fried, former CEO of now-bankrupt crypto exchange FTX, was questioned by federal prosecutors regarding his message deletion practices and the alleged use of customer funds. The focus of the questioning was Bankman-Fried's use of the encrypted messaging app Signal and his enabling of auto-delete features in 2021. Bankman-Fried admitted that he did not seek specific legal approval for auto-deleting messages but believed it was allowed under FTX's document retention policy implemented that year. The Inner City Press recorded Bankman-Fried's testimony.
Preservation of Messages and Compliance with Policies
Prosecutors inquired about Bankman-Fried's decision to delete messages containing financial spreadsheets from former Alameda CEO Caroline Ellison. Bankman-Fried acknowledged that verbal discussions did not need to be reported but admitted that he should have preserved these messages. Additionally, prosecutors questioned him about the deletion of messages related to the shutdown of Alameda and its reported financial deficit of $13 billion. Bankman-Fried claimed he did not recall such conversations.
Use of North Dimension Bank Accounts
Prosecutors also raised concerns about FTX customer funds being transferred through Alameda entity North Dimension bank accounts. Bankman-Fried signed documents listing it as a trading firm but stated that he was unaware of any actual trading activities. When asked if he discussed the use of the account to accept customer funds with lawyers, Bankman-Fried was uncertain. He did confirm that he did not inform lawyers that the funds were originating from FTX customer accounts.
Bankman-Fried's Assertion of Innocence
Throughout the testimony, Bankman-Fried maintained his innocence and denied any intention of embezzling customer assets. He expressed this sentiment voluntarily, emphasizing his belief that it was important to provide an answer. Despite facing multiple charges, Bankman-Fried entered a not guilty plea to all allegations. It is worth noting that the federal prosecutors conducted their interrogation without a jury present.
Continuation of Proceedings
The proceedings in Judge Kaplan's courtroom will resume on Friday morning Eastern Time (ET). The prosecution team is expected to continue their extensive line of inquiry. Share your thoughts and opinions on Bankman-Fried's testimony and cross-examination by federal prosecutors in the comments section below.
Frequently Asked Questions
What proportion of your portfolio should you have in precious metals
Before we can answer this question, it is important to understand what precious metals actually are. Precious metals refer to elements with a very high value relative other commodities. They are therefore very attractive for investment and trading. Gold is by far the most common precious metal traded today.
But, there are other types of precious metals available, including platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It also remains relatively unaffected by inflation and deflation.
In general, prices for precious metals tend increase with the overall marketplace. That said, they do not always move in lockstep with each other. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. This is because investors expect lower interest rates, making bonds less attractive investments.
The opposite effect happens when the economy is strong. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. These precious metals are rare and become more costly.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
Is gold a good IRA investment?
If you are looking for a way to save money, gold is a great investment. It can be used to diversify your portfolio. But gold has more to it than meets the eyes.
It has been used throughout the history of currency and remains a popular payment method. It is often called “the most ancient currency in the universe.”
Gold, unlike other paper currencies created by governments is mined directly from the earth. It is very valuable, as it is rare and hard to create.
Gold prices fluctuate based on demand and supply. If the economy is strong, people will spend more money which means less people can mine gold. The result is that gold's value increases.
On the other hand, people will save cash when the economy slows and not spend it. This leads to more gold being produced which decreases its value.
This is why it makes sense to invest in gold for individuals and companies. You will benefit from economic growth if you invest in gold.
Your investments will also generate interest, which can help you increase your wealth. If gold's value falls, you don't have to lose any of your investments.
Can I have physical gold in my IRA
Not only is gold paper currency, but it's also money. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Many Americans today prefer to invest in precious metals, such as silver and gold, over stocks and bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. The S&P 500 dropped 21 percent in the same time period, while gold prices rose by nearly 100 percent between August 2011-early 2013. During those turbulent market conditions, gold was among the few assets that outperformed stocks.
Another benefit to investing in gold? It has virtually zero counterparty exposure. Your shares will still be yours even if your stock portfolio drops. If you have gold, it will still be worth your shares even if the company in which you invested defaults on its debt.
Finally, gold provides liquidity. This means you can easily sell your gold any time, unlike other investments. Gold is liquid and therefore it makes sense to purchase small amounts. This allows for you to benefit from the short-term fluctuations of the gold market.
What amount should I invest in my Roth IRA?
Roth IRAs allow you to deposit your money tax-free. You can't withdraw money from these accounts before you reach the age of 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. 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 are able to take out more that what you have initially contributed, you must pay taxes.
The second rule states that income taxes must be paid before you can withdraw earnings. You will pay income taxes when you withdraw your earnings. Let's assume that you contribute $5,000 each year to your Roth IRA. Let's also say that you earn $10,000 per annum after contributing. This would mean that you would have to pay $3,500 in federal income tax. You would have $6,500 less. You can only take out what you originally contributed.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. On top of that, you'd lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
There are two types if Roth IRAs: Roth and Traditional. 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. You can withdraw as much as you want from a traditional IRA.
Roth IRAs do not allow you to deduct your contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. 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.
What is a Precious Metal IRA?
An IRA with precious metals allows you to diversify retirement savings into gold and silver, palladium, rhodiums, iridiums, osmium, or other rare metals. These are “precious metals” because they are hard to find, and therefore very valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.
Precious metals often refer to themselves as “bullion.” Bullion is the physical metal.
Bullion can be purchased via a variety of channels including online sellers, large coin dealers, and grocery stores.
A precious metal IRA lets you invest in bullion direct, instead of purchasing stock. This allows you to receive dividends every year.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. You pay only a small percentage of your gains tax. You can also access your funds whenever it suits you.
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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
investopedia.com
cftc.gov
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- You want to keep gold in your IRA at home? It's not legal – WSJ
bbb.org
How To
How to keep physical gold in an IRA
The easiest way to invest is to buy shares in companies that make gold. But, this approach comes with risks. These companies may not survive the next few years. Even if they survive, there's always the risk that they will lose money due fluctuations in gold prices.
Another option is to purchase physical gold. You can either open an account with a bank, online bullion dealer, or buy gold directly from a seller you trust. This option offers the advantages of being able to purchase gold at low prices and easy access (you don’t need to deal directly with stock exchanges). It's easier to track how much gold is in your possession. So you can see exactly what you have paid and if you missed any taxes, you will get a receipt. You have less risk of theft when investing in stocks.
However, there are disadvantages. You won't get the bank's interest rates or investment money. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. Finally, the taxman might want to know where your gold has been placed!
BullionVault.com offers more information on buying gold for an IRA.
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By: Jamie Redman
Title: Sam Bankman-Fried Faces Questioning on Message Deletion and Use of Customer Funds
Sourced From: news.bitcoin.com/prosecutors-probe-sam-bankman-frieds-memory-in-ftx-case-without-jury/
Published Date: Fri, 27 Oct 2023 13:30:55 +0000
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