Romance Scam Tactics
The US Commodities Futures Trading Commission (CFTC) has filed a civil suit against Debiex, a fraudulent crypto exchange platform accused of misappropriating $2.3 million from customers. The CFTC claims that the exchange's representatives used romance scam tactics to deceive and defraud five potential investors.
Relief Defendant
Zhāng Chéng Yáng has also been identified as a relief defendant due to suspected involvement in enabling Debiex's fraudulent activities at least once. Ian McGinley, the Director of Enforcement at the CFTC, commented on the civil enforcement action, stating that it aligns with the Division of Enforcement's mission to bring justice to victims, uncover misconduct, and hold those who violate anti-fraud regulations accountable.
Fake Websites and Money Mules
The CFTC's statement outlined the elaborate scam orchestrated by Debiex from March 2022 until the present. The scheme involved the creation of websites that imitated legitimate trading platforms, fake customer service, and the use of money mules. Through these tactics, the masterminds behind the scam successfully convinced victims that Debiex was a legitimate crypto exchange.
However, the Commission emphasized that Debiex customers were unaware of the scheme's true nature and its intention to deceive potential investors.
The CFTC advises prospective investors to always verify a company's registration with the CFTC before committing funds to avoid falling victim to similar scams.
What are your thoughts on this story? Let us know in the comments section below.
Frequently Asked Questions
What are the benefits of a gold IRA
Many benefits come with a gold IRA. It's an investment vehicle that allows you to diversify your portfolio. You have control over how much money goes into each account.
You also have the option to transfer funds from other retirement plans into a IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best thing about investing in gold IRAs is that you don’t need any special skills. They're available at most banks and brokerage firms. Withdrawals can happen automatically, without any fees or penalties.
But there are downsides. The volatility of gold has been a hallmark of its history. Understanding why you invest in gold is crucial. Are you seeking safety or growth? Are you looking for growth or insurance? Only then will you be able make informed decisions.
You might want to buy more gold if you intend to keep your gold IRA for a long time. One ounce won't be enough to meet all your needs. You could need several ounces depending on what you plan to do with your gold.
If you're planning to sell off your gold, you don't necessarily need a large amount. Even one ounce is enough. You won't be capable of buying anything else with these funds.
Should You Purchase Gold?
In the past, gold was considered a haven for investors during economic turmoil. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.
This could be changing, according to some experts. Experts believe that gold prices could skyrocket in the face of another global financial crisis.
They also pointed out that gold is gaining popularity due to its perceived value, and potential return.
These are some important things to remember if your goal is to invest in gold.
- Consider first whether you will need the money to save for retirement. It is possible to save enough money to retire without investing in gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, make sure you understand what you're getting yourself into before you start buying gold.There are several different types of gold IRA accounts available. Each offer varying degrees of security and flexibility.
- Keep in mind that gold may not be as secure as a bank deposit. If you lose your gold coins, you may never recover them.
Don't buy gold unless you have done your research. Make sure to protect any gold you already own.
Can the government seize your gold?
You own your gold and therefore the government cannot seize it. It is yours because you worked hard for it. It belongs to you. This rule could be broken by exceptions. You can lose your gold if you have been convicted for fraud against the federal governments. Also, if you owe taxes to the IRS, you can lose your precious metals. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
How is gold taxed 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's not considered income. If you sell it after the purchase, you will get a tax-deductible gain if you increase the price.
As collateral for loans, gold is possible. Lenders seek to get the best return when you borrow against your assets. Selling gold is usually the best option. It's not guaranteed that the lender will do it. They might keep it. They may decide to resell it. The bottom line is that you could lose potential profit in any case.
In order to avoid losing your money, only lend against your precious metal if you plan to use it to secure other collateral. It's better to keep it alone.
What Should Your IRA Include in 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 ways to make money on silver and gold investments without spending too much.
You might think about buying physical coins such a bullion bar or round. Shares in precious metals-producing companies could be an option. Another option is to make use of the IRA rollover programs offered by your retirement plan provider.
No matter what your preference, precious metals will still be of benefit to you. These metals are not stocks, but they can still provide long-term growth.
Their prices rise with time, which is a different to traditional investments. You'll probably make more money if your investment is sold down the line than traditional investments.
What are the fees for an IRA that holds gold?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This fee covers account maintenance fees, as well any investment costs that may be associated with your investments.
If you wish to diversify your portfolio, you may need to pay additional fees. These fees vary depending on what type of IRA you choose. Some companies offer free checking, but charge monthly fees for IRAs.
Most providers also charge annual management costs. These fees can range from 0% up to 1%. The average rate per year is.25%. These rates are usually waived if you use a broker such as TD Ameritrade.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
cftc.gov
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement funds
irs.gov
How To
Gold Roth IRA guidelines
Start saving as soon as possible to save for your retirement. Start saving as soon as possible, usually at age 50. You can continue to save throughout your career. It is important to invest enough money each and every year to ensure you get adequate growth.
You can also take advantage of tax-free savings opportunities like a traditional 401k (k), SEP IRA (or SIMPLE IRA). These savings vehicles let you make contributions and not pay taxes until the earnings are withdrawn. This makes them great options for people who don't have access to employer matching funds.
The key is to save regularly and consistently over time. If you aren't contributing the maximum amount permitted, you could miss out on tax benefits.
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By: Terence Zimwara
Title: The US Commodities Regulator Takes Action Against Bogus Crypto Exchange
Sourced From: news.bitcoin.com/cftc-files-civil-enforcement-action-against-bogus-crypto-exchange-debiex/
Published Date: Sun, 21 Jan 2024 09:00:12 +0000
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