The U.S. Securities and Exchange Commission (SEC) has decided to abandon its lawsuit against Debt Box, a crypto company previously accused of defrauding investors of millions. This surprising decision comes as a result of the SEC's acknowledgement of presenting misleading information in court, which has undermined the agency's case and credibility.
SEC's Lawsuit Dismissal Request Based on Inaccurate Statements
The lawsuit, initially filed against Digital Licensing Inc., which operates as Debt Box, alleged that the company had defrauded investors of at least $49 million. The SEC claimed that Debt Box offered "node licenses" for mining cryptocurrencies that were never actually mined. This legal action was part of the SEC's broader crackdown on cryptocurrency firms under the leadership of Chair Gary Gensler, who has consistently maintained that most cryptocurrencies are securities.
However, the case took an unexpected turn when the SEC's attorneys admitted to falling short of the court's expectations for accuracy and candor. This admission followed criticism from U.S. District Court Judge Robert Shelby in Utah, who called out the SEC lawyers for making "false or misleading" statements and demanded clarification.
The SEC's Misrepresentation and Judge Shelby's Response
One of the misrepresentations made by the SEC was that Debt Box was attempting to transfer assets overseas to evade U.S. jurisdiction. Judge Shelby found this claim to be inaccurate and issued a "show cause order" to the SEC, compelling them to provide a valid reason or explanation for their actions.
In response to the court's order, the SEC filed a statement on Jan. 30, stating that while their attorneys should have been more forthcoming, they believe that sanctions are not necessary to address the issues at hand. As a result, the agency expressed its intention to dismiss the lawsuit without prejudice, which leaves the possibility of refiling the case in the future.
Questions Surrounding the SEC's Decision
The SEC's decision to seek dismissal without prejudice has raised concerns within the legal and financial sectors, particularly due to the agency's strong stance on cryptocurrency regulation. Debt Box's legal team strongly criticized the SEC's actions, stating that the agency had gotten the case completely wrong and should not be allowed to perpetuate a false narrative to avoid dismissal.
Despite the SEC's admission of inaccuracies and subsequent move to dismiss the case, the agency has chosen not to provide further comments beyond its public filings.
What could be the reason behind the SEC's inability to pursue this lawsuit? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
How to Open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. Open the account by filling out Form 8606. For you to determine the type and eligibility for which IRA, you need Form 5204. This form must be submitted within 60 days of the account opening. Once you have completed this form, it is possible to begin investing. You might also be able to contribute directly from the paycheck through payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. The process for an ordinary IRA will not be affected.
To qualify for a precious-metals IRA, you'll need to meet some requirements. The IRS requires that you are at least 18 years old and have earned an income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. Contributions must be made regularly. These rules are applicable whether you contribute through your employer or directly from the paychecks.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. However, physical bullion will not be available for purchase. This means you won’t be able to trade stocks and bonds.
Your precious metals IRA can be used to directly invest in precious metals-related companies. Some IRA providers offer this option.
There are two main drawbacks to investing through an IRA in precious metallics. They aren't as liquid as bonds or stocks. It is therefore harder to sell them when required. They don't yield dividends like bonds and stocks. So, you'll lose money over time rather than gain it.
How much of your IRA should include precious metals?
The most important thing you should know when investing in precious metals is that they are not just for wealthy people. You don't have to be rich to invest in them. There are many methods to make money off of silver and gold investments.
You might think about buying physical coins such a bullion bar or round. You could also buy shares in companies that produce precious metals. You might also want to use an IRA rollover program offered through your retirement plan provider.
You can still get benefits from precious metals regardless of what choice you make. They offer the potential for long-term, sustainable growth even though they aren’t stocks.
They also tend to appreciate over time, unlike traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.
What tax is gold subject in an IRA
The tax on the sale of gold is based on its fair market value when sold. If you buy gold, there are no taxes. It is not considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
You can use gold as collateral to secure loans. When you borrow against your assets, lenders try to find the highest return possible. This often means selling gold. The lender might not do this. They may hold on to it. They may decide to resell it. Either way, you lose potential profit.
If you plan on using your gold as collateral, then you shouldn't lend against it. Otherwise, it's better to leave it alone.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- 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)
- 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)
- 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)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
irs.gov
finance.yahoo.com
cftc.gov
How To
The History of Gold as an Asset
From the beginning of history, gold was a popular currency. It was universally accepted due to its purity and divisibility, beauty, scarcity, and durability. Due to its value, it was also internationally traded. Different weights and measurements existed around the world, however, because there were not international standards to measure gold. One pound sterling in England was equivalent to 24 carats silver, while one livre tournois in France was equal 25 carats. In Germany, one mark was equivalent to 28 carats.
The United States started issuing American coins in the 1860s made of 90% copper and 10% zinc. 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. The U.S. government was unable to pay its debts due to too much money being in circulation. To do so, they decided to sell some of the excess gold back to Europe.
Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. However, after World War I, many European countries stopped taking gold and began using paper money instead. Since then, the price of gold has increased significantly. Although the price of gold fluctuates today, it remains one of your most safe investments.
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By: David Sencil
Title: SEC Drops Fraud Case Against Crypto Firm Debt Box Due to Inaccuracies in Court
Sourced From: news.bitcoin.com/sec-moves-to-dismiss-lawsuit-against-crypto-company-debt-box-citing-inaccuracies-in-court/
Published Date: Wed, 31 Jan 2024 22:30:33 +0000
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