The Concerns of US Prosecutors
In the aftermath of the settlement between Binance, the world's largest cryptocurrency exchange, and the US Department of Justice, federal authorities are urging that Changpeng Zhao (CZ), the former CEO of Binance, remain in the United States until his sentencing in February 2024.
A recent court filing reveals that US prosecutors have petitioned Magistrate Judge Brian Tsuchida to ensure CZ's continued presence in the country. The request, made on Wednesday, seeks to reevaluate the bond conditions that were set on November 21, 2023. The US government expresses concerns that CZ is a "substantial risk of flight."
The Explicit Request
The filed document explicitly states:
"[The Government] requests that the court order that Zhao should not be permitted to return to the UAE before sentencing."
CZ currently resides in Dubai, United Arab Emirates (UAE), with his three children and partner. Prosecutors argue that the possibility of an 18-month jail term may tempt CZ to remain in the UAE with his family. The absence of an extradition treaty between the UAE and the US further complicates matters, as it would be challenging to ensure his return if he fails to comply with court directives.
Questioning the Bail Bond
Despite an initial agreement on a $175 million bail bond, prosecutors are now raising doubts about its adequacy. According to the proposed arrangement, "three responsible persons" were supposed to secure $15 million in cash for the bail. While CZ faces the potential for imprisonment, there is still a chance of avoiding it, similar to the case of Bitmex's former CEO, Arthur Hayes.
Hayes, who violated the Bank Secrecy Act (BSA) by failing to establish an anti-money laundering (AML) protocol at Bitmex, faced the possibility of a five-year prison sentence. However, as a first-time offender, he was granted two years of probation instead. Hayes resolved his legal troubles by paying a $10 million fine for his offenses.
Share Your Thoughts
What are your thoughts on the prosecutor's concerns about CZ posing a flight risk? Feel free to share your opinions on this matter in the comments section below.
Frequently Asked Questions
What is a Precious Metal IRA, and how can you get one?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These are called “precious” metals because they're very hard to find and very valuable. These are good investments for your cash and will help you protect yourself from economic instability and inflation.
Bullion is often used to refer to precious metals. Bullion is the physical metal.
Bullion can be purchased through many channels including online retailers and large coin dealers as well as some grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. This means you'll receive dividends every year.
Precious Metal IRAs don’t require paperwork nor have annual fees. Instead, your gains are subject to a small tax. You can also access your funds whenever it suits you.
What are the fees associated with an IRA for gold?
Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes the account maintenance fees and any investment costs associated with your chosen investments.
To diversify your portfolio you might need to pay additional charges. The fees you pay will vary depending on the type of IRA that you choose. For example, some companies offer free checking accounts but charge monthly fees for IRA accounts.
A majority of providers also charge annual administration fees. These fees are usually between 0% and 1%. The average rate for a year is.25%. These rates are often waived if a broker like TD Ameritrade is used.
How much should precious metals be included in your portfolio?
This question can only be answered if we first know what precious metals are. Precious metals refer to elements with a very high value relative other commodities. This makes them very valuable in terms of trading and investment. Today, gold is the most commonly traded precious metal.
There are however many other types, including silver, and platinum. The price of gold tends to fluctuate but generally stays at a reasonably stable level during periods of economic turmoil. It is not affected by inflation or deflation.
All precious metals prices tend to rise with the overall market. That said, they do not always move in lockstep with each other. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. Investors expect lower interest rate, making bonds less appealing investments.
When the economy is healthy, however, the opposite effect occurs. Investors favor safe assets like Treasury Bonds, and less precious metals. They are more rare, so they become more expensive and less valuable.
To maximize your profits when investing in precious metals, diversify across different precious metals. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
Should You Buy Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Many people today are moving away from stocks and bonds to look at precious metals, such as gold, as a way to diversify their investments.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Experts believe this could change soon. According to them, gold prices could soar if there is another financial crisis.
They also noted that gold is growing in popularity because of its perceived value as well as potential return.
Here are some things to consider if you're considering investing in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. It is possible to save enough money to retire without investing in gold. However, when you retire at age 65, gold can provide additional protection.
- Second, you need to be clear about what you are buying before you decide to buy gold. Each account offers different levels of security and flexibility.
- Last but not least, gold doesn't provide the same level security as a savings account. If you lose your gold coins, you may never recover them.
If you are thinking of buying gold, do your research. Make sure to protect any gold you already own.
Is it possible to hold a gold ETF within a Roth IRA
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
Traditional IRAs allow for contributions from both employees and employers. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
Also available is an Individual Retirement Annuity. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions to IRAs will not be taxed
What are some of the benefits of a gold IRA
You can save money on retirement by putting your money into an Individual Retirement Account. It's not subject to tax until you withdraw it. You control how much you take each year. There are many types available. Some are more suitable for students who wish to save money for college. Others are intended for investors seeking higher returns. Roth IRAs are a way for individuals to make contributions after the age of 59 1/2, and then pay taxes on any earnings upon retirement. These earnings don't get taxed if they withdraw funds. This type account may make sense if it is your intention to retire early.
A gold IRA is similar to other IRAs because it allows you to invest money in various asset classes. Unlike a regular IRA where you pay taxes on gains, a gold IRA doesn't require you to worry about taxation while you wait to get them. For people who would rather invest than spend their money, gold IRA accounts are a good option.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. You won't have the hassle of making deposits each month. You could also set up direct debits to never miss a payment.
Finally, the gold investment is among the most reliable. It is not tied to any country so its value tends stay steady. Even in times of economic turmoil gold prices tend to remain stable. This makes it a great investment option to protect your savings from inflation.
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.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
If you plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
It is a good idea to consult an accountant or financial planner to learn more about your options.
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)
- 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 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)
- 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)
External Links
irs.gov
finance.yahoo.com
bbb.org
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
How To
Three ways to invest in gold for retirement
It's important to understand how gold fits in with your retirement plan. You can invest in gold through your 401(k), if you have one at work. You may also be interested in investing in gold beyond your workplace. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. If precious metals aren't your thing, you may be interested in buying them from a dealer.
If you do invest in gold, follow these three simple rules:
- You can buy gold with your cash – No need to use credit cards or borrow money for investment financing. Instead, put cash into your accounts. This will help you to protect yourself against inflation while also preserving your purchasing power.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. The reason is that it's much easier to sell physical gold coins than certificates. Also, there are no storage fees associated with physical gold coins.
- Diversify Your Portfolio. – Do not put all your eggs into one basket. This is how you spread your wealth. You can invest in different assets. This reduces risk and allows you to be more flexible during market volatility.
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By: Jamie Redman
Title: US Prosecutors Argue for Continued Presence of Binance's Former CEO in the United States
Sourced From: news.bitcoin.com/us-prosecutors-urge-court-to-keep-binances-ex-ceo-in-the-country-amid-flight-risk-concerns/
Published Date: Fri, 24 Nov 2023 02:00:03 +0000
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