Former FTX Lawyer Uncovers Shocking Transfers
Former general counsel of FTX, Can Sun, testified in federal court on Thursday, shedding light on the secret transfers made by FTX founder Sam Bankman-Fried (SBF). Sun expressed his shock upon discovering that billions of dollars in customer funds had been secretly transferred to SBF's hedge fund, Alameda Research. The revelation led Sun to resign from his position, as he realized that $7 billion was missing from the spreadsheets.
Misappropriation of Funds, Says Former FTX Lawyer
During the criminal fraud trial of Sam Bankman-Fried, Can Sun, the former general counsel of FTX, took the stand and revealed that he was unaware of FTX's secret transfers of customer funds to Bankman-Fried's trading firm, Alameda Research. Sun expressed his shock at the discovery of the fraudulent transfers, stating that $7 billion had gone missing. The Inner City Press published Sun's testimony, where he stated that he concluded that "funds had been misappropriated" after examining FTX spreadsheets.
Lackluster Response from FTX Leader
Can Sun, the ex-general counsel of FTX, recalled his interaction with SBF regarding his concerns about the missing funds. Sun stated that he expected a more significant response but was met with a calm reaction from Bankman-Fried, who simply said, "Got it." This lackluster response surprised Sun, considering the gravity of the situation.
No Explanation for the Transfers
When questioned about whether Bankman-Fried explained the transfers, Can Sun stated that he received no information from SBF regarding the missing billions. Sun recounted how SBF asked him to provide a "legal justification" for the transfers when a private equity firm inquired. However, Sun confirmed that he was not given any explanation by SBF.
FTX Employment Contract Raises Questions
During cross-examination, Mark Cohen, the attorney representing SBF, discussed Can Sun's FTX employment contract, which revealed $3.5 million in loans and bonuses from Alameda Research. When asked if there was a connection, Sun acknowledged that both the loans and bonuses were related to his employment.
Non-Prosecution Agreement and Use of Encrypted Messaging Apps
Can Sun admitted to signing a non-prosecution agreement with prosecutors that required him to provide truthful testimony. When questioned by SBF's attorney about the consequences of not telling the truth, Sun confirmed that he could face prosecution. Additionally, Sun was asked about the use of encrypted messaging apps in the legal department, but no further details were provided in the testimony.
Cooperation of Former FTX and Alameda Executives
Can Sun's testimony follows the cooperation of former FTX and Alameda executives, Caroline Ellison, Gary Wang, and Nishad Singh, who pleaded guilty and provided information to the prosecutors. If convicted of fraud and conspiracy charges, Sam Bankman-Fried could potentially face a sentence of over 100 years in prison. Bankman-Fried has pleaded not guilty to these charges.
In conclusion, Can Sun's testimony has revealed shocking details about the secret transfers of customer funds at FTX. The missing $7 billion has raised serious concerns, and the trial continues to unfold. Share your thoughts and opinions on this matter in the comments section below.
Frequently Asked Questions
How Do You Make a Withdrawal from a Precious Metal IRA?
First decide if your IRA account allows you to withdraw funds. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, you'll need to figure out how much money you will take out of your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Finally, you'll need to open a brokerage account once these calculations are completed. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. Some storage facilities can accept bullion bar, while others require you buy individual coins. Before you choose one, weigh the pros and cons.
Because you don't have to store individual coins, bullion bars take up less space than other items. But, each coin must be counted separately. On the flip side, storing individual coins allows you to easily track their value.
Some people like to keep their coins in vaults. Some people prefer to store their coins safely in a vault. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
What are the benefits of a gold IRA
There are many benefits to a gold IRA. You can diversify your portfolio with this investment vehicle. You have control over how much money goes into each account.
You have the option of rolling over funds from other retirement account into a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part is that you don't need special skills to invest in gold IRAs. They are offered by most banks and brokerage companies. Withdrawals are made automatically without having to worry about fees or penalties.
There are, however, some drawbacks. Gold is known for being volatile in the past. So it's essential to understand why you're investing in gold. Are you looking for safety or growth? Is it for security or long-term planning? Only once you know, that will you be able to make an informed decision.
If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. One ounce won't be enough to meet all your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't have to buy a lot of gold if your goal is to sell it. You can even get by with less than one ounce. But you won't be able to buy anything else with those funds.
Should You Invest in gold for Retirement?
The answer will depend on how many dollars you have saved so far and whether you had gold as an investment option at the time. You can invest in both options if you aren't sure which option is best for you.
Not only is it a safe investment but gold can also provide potential returns. This makes it a worthwhile choice for retirees.
Most investments have fixed returns, but gold's volatility is what makes it unique. Because of this, gold's value can fluctuate over time.
But this doesn't mean you shouldn't invest in gold. It is important to consider the fluctuations when planning your portfolio.
Another advantage to gold is that it can be used as a tangible asset. Gold can be stored more easily than stocks and bonds. It is also easily portable.
Your gold will always be accessible as long you keep it in a safe place. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
A portion of your savings can be invested in something that doesn't go down in value. Gold tends to rise when the stock markets fall.
Investing in gold has another advantage: you can sell it anytime you want. You can also liquidate your gold position at any time you need cash, just like stocks. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Do not buy too much at one time. Start with a few ounces. Continue adding more as necessary.
Keep in mind that the goal is not to quickly become wealthy. Rather, it's to build up enough wealth so you won't need to rely on Social Security benefits.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
Can I hold physical gold in my IRA?
Gold is money, not just paper currency or coinage. It is an asset that people have used over thousands of years as money, and a way to protect wealth from inflation and economic uncertainties. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Today, many Americans invest in precious metals such as gold and silver rather than 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 that gold has historically outperformed other assets in financial panic periods. 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 turbulent market conditions gold was one of few assets that outperformed stock prices.
Another benefit to investing in gold? It has virtually zero counterparty exposure. If your stock portfolio goes down, you still own your shares. 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. The liquidity of gold makes it a good investment. This allows you to take advantage of short-term fluctuations in the gold market.
What should I pay into my Roth IRA
Roth IRAs can be used to save taxes on your retirement funds. You can't withdraw money from these accounts before you reach the age of 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, your principal (the deposit amount originally made) is not transferable. You cannot withdraw more than the original amount you contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule is that your earnings cannot be withheld without income tax. You will pay income taxes when you withdraw your earnings. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's also say that you earn $10,000 per annum after contributing. You would owe $3,500 in federal income taxes on the earnings. You would have $6,500 less. This is the maximum amount you can withdraw because you are limited to what you initially contributed.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. In addition, 50% of your earnings will be subject to tax again (half of 40%). So, even though you ended up with $7,000 in your Roth IRA, you only got back $4,000.
There are two types if Roth IRAs, Roth and Traditional. Traditional IRAs allow you to deduct pretax contributions from your taxable income. Your traditional IRA allows you to withdraw your entire contribution plus any interest. There is no limit on how much you can withdraw from a traditional IRA.
Roth IRAs don't allow you deduct contributions. However, once you retire, you can withdraw your entire contribution plus accrued interest. There is no minimum withdrawal required, unlike a traditional IRA. You don’t have to wait for your turn 70 1/2 years before you can withdraw your contributions.
- You can only purchase gold bars at least 99.5% purity. (forbes.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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Legal – WSJ
Guidelines for Gold Roth IRA
It is best to start saving early for retirement. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. You must contribute enough each year to ensure that you have adequate growth.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles permit you to make contributions, but not pay any tax until your earnings are withdrawn. These savings vehicles can be a great option for individuals who don't qualify for employer matching funds.
Savings should be done consistently and regularly over time. You'll miss out on any potential tax benefits if you're not contributing the maximum amount allowed.
By: Jamie Redman
Title: Ex-General Counsel Reveals Startling Details in FTX's $7B Fraud Trial
Sourced From: news.bitcoin.com/ex-general-counsel-sheds-light-on-ftxs-7b-gap-in-bankman-fried-fraud-trial/
Published Date: Sun, 22 Oct 2023 07:30:59 +0000