New York Judge Calls for Expedited SEC Decision
Judge Martin Glenn, overseeing the bankruptcy proceedings of Celsius Network, has urged the U.S. Securities and Exchange Commission (SEC) to quickly decide whether to approve the company's plan to transform itself into a crypto mining firm. The judge expressed his hope that the SEC would expedite the decision-making process due to the progress made by Celsius and its creditors in Chapter 11. He stated, "The SEC will make whatever decision it believes is correct. I just hope the process will move forward, so if there are any bumps in the road, we can try and work those out along the way."
Repayment Plan Includes Cryptocurrency and Stock
The proposal aims to partially repay customers who have had their accounts frozen since before Celsius filed for bankruptcy in June 2022. The plan involves using a combination of cryptocurrency and stock in a new publicly traded mining entity. Arrington Capital, a management team, will lead the new entity. While Judge Glenn intends to issue a ruling as soon as possible, the plan would still require approval from the SEC. If the proposed transformation fails, Celsius may be forced to liquidate.
Creditors Support Repayment Plan, Customers Express Concerns
The repayment proposal has received widespread support from creditors. However, some of Celsius' customers are challenging the plan, preferring liquidation as it would provide them with more cryptocurrency rather than shares in an unproven new firm. Additionally, there have been complaints about the fees paid to bankruptcy advisers who work to secure creditor support for the plan.
SEC Lawsuit and Previous Misconduct
In July of this year, the SEC filed a lawsuit against Celsius, accusing the failed crypto lender and its former CEO, Alexander "Alex" Mashinsky, of making fraudulent promises regarding the platform's "Earn Interest Program" and misleading investors about the company's financial state. The agency also highlighted that investors were unable to withdraw billions of U.S. dollars in crypto assets when the business began to collapse.
In conclusion, the fate of Celsius' proposed transformation into a crypto mining firm now rests in the hands of the SEC. The judge overseeing the bankruptcy proceedings has called for an expedited decision to ensure a smooth resolution. While the repayment plan has garnered support from creditors, there are concerns among customers regarding the allocation of assets. It remains to be seen whether the SEC will approve the restructuring and repayment plan for Celsius.
Frequently Asked Questions
What are the pros & con's of a golden IRA?
The main advantage of an Individual Retirement Account (IRA) over a regular savings account is that you don't have to pay taxes on any interest earned. An IRA is a good choice for those who want a way to save some money but don’t want the tax. This type of investment has its downsides.
If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
The downside is that managing your IRA requires fees. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management costs ranging from $10-50.
If you prefer to keep your money outside a bank, you'll need to purchase insurance. Many insurers require that you own at least one ounce of gold before you can make a claim. Insurance that covers losses upto $500,000.
If you choose to go with a gold IRA, you'll need to determine how much gold you want to use. Some providers restrict the amount you can own in gold. Others let you choose your weight.
It's also important to decide whether or not to buy gold futures contracts. Futures contracts for gold are less expensive than physical gold. Futures contracts, however, allow for greater flexibility in buying gold. They allow you to set up a contract with a specific expiration date.
You'll also need to decide what kind of insurance coverage you want. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. It does provide coverage for damage from natural disasters, however. If you live near a high-risk region, you might want to consider additional coverage.
You should also consider the cost of storage for your gold. Storage costs are not covered by insurance. Safekeeping costs can be as high as $25-40 per month at most banks.
You must first contact a qualified custodian before you open a gold IRA. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians cannot sell your assets. Instead, they must maintain them for as long a time as you request.
After you have decided on the type of IRA that best suits you, you will need to complete paperwork detailing your goals. You should also include information about your desired investments, such as stocks or bonds, mutual funds, real estate, and mutual funds. Your monthly investment goal should be stated.
You will need to fill out the forms and send them to your chosen provider together with a check for small deposits. Once the company has received your application, they will review it and send you a confirmation email.
Consider consulting a financial advisor when opening a golden IRA. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
Can I buy gold with my self-directed IRA?
Your self-directed IRA can be used to purchase gold, but first you need to open an account with a brokerage firm such as TD Ameritrade. Transfer funds from an existing retirement account are also possible.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.
If you do decide you want to invest your money in gold, you should look into purchasing physical bullion instead of futures contracts. Futures contracts can be described as financial instruments that are determined by the gold price. You can speculate on future prices, but not own the metal. You can only hold physical bullion, which is real silver and gold bars.
Can I hold a gold ETF in a Roth IRA?
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
A traditional IRA allows contributions from both employee and employer. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The tax rate on money that is invested in an ESOP is lower than if it was held in the employees' hands.
You can also get an Individual Retirement Annuity, or IRA. An IRA allows for you to make regular income payments during your life. Contributions made to IRAs are not taxable.
How much gold should your portfolio contain?
The amount of money you need to make depends on how much capital you are looking for. Start small with $5k-10k. As your business grows, you might consider renting out office space or desks. Renting out desks and other equipment is a great way to save money on rent. You only pay one month.
It's also important to determine what type business you'll run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. This means that you may only be paid once every six months.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I recommend starting with $1k-$2k of gold and growing from there.
What proportion of your portfolio should you have in precious metals
First, let's define precious metals to answer the question. Precious Metals are elements that have a very high relative value to other commodities. This makes them extremely valuable for trading and investing. Gold is currently the most widely traded precious metal.
There are also many other precious metals such as platinum and silver. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also relatively unaffected both by inflation and deflation.
In general, all precious metals have a tendency to go up with the market. However, they may not always move in synchrony 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. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. Because they are rare, they become more pricey and lose value.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
What is the benefit of a gold IRA?
The benefits of a gold IRA are many. It can be used to diversify portfolios and is an investment vehicle. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part about gold IRAs? You don't have to be an expert. They are readily available at most banks and brokerages. Withdrawals can happen automatically, without any fees or penalties.
However, there are still some drawbacks. Gold is known for being volatile in the past. Understanding why you want to invest in gold is essential. Are you looking for safety or growth? Are you trying to find safety or growth? 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. A single ounce isn't enough to cover all of your needs. Depending on your plans for using your gold, you may need multiple ounces.
You don't need to have a lot of gold if you are selling it. You can even get by with less than one ounce. These funds won't allow you to purchase anything else.
Is gold a good choice for an investment IRA?
Any person looking to save money is well-served by gold. You can also diversify your portfolio by investing in gold. But gold has more to it than meets the eyes.
It has been used throughout history as currency and it is still a very popular method of payment. It's often referred to as “the world's oldest currency.”
But gold is mined from the earth, unlike paper currencies that governments create. It is very valuable, as it is rare and hard to create.
The supply and demand for gold determine the price of gold. The strength of the economy means people spend more, and so, there is less demand for gold. As a result, the value of gold goes up.
On the flipside, people may save cash rather than spend it when the economy slows. This means that more gold is produced, which reduces its value.
This is why it makes sense to invest in gold for individuals and companies. You'll reap the benefits of investing in gold when the economy grows.
In addition to earning interest on your investments, this will allow you to grow your wealth. If gold's value falls, you don't have to lose any of your investments.
Statistics
- 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)
- 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)
- 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
investopedia.com
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
finance.yahoo.com
bbb.org
How To
A rising trend in gold IRAs
As investors look for ways to diversify their portfolios and protect themselves against inflation, the gold IRA trend is on the rise.
Owners of the gold IRA can use it to invest in physical bars and bullion gold. It can be used for tax-free growth and provides an alternative investment option for those concerned about stocks and bonds.
Investors can have confidence in their investments and avoid market volatility with a gold IRA. They can also use the gold IRA as a protection against potential problems like inflation.
Investors also benefit from physical gold's unique properties, such as durability and portability.
A gold IRA provides many additional benefits. One is the ability for heirs to quickly transfer ownership of gold. Another is the fact that gold is not considered a currency or a commodities by the IRS.
This means that investors who are looking for financial safety and security are becoming more interested in the gold IRA.
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By: Lubomir Tassev
Title: Judge Urges SEC Decision on Celsius' Plan to Become a Bitcoin Miner
Sourced From: news.bitcoin.com/judge-urges-for-sec-decision-on-planned-celsius-restart-as-crypto-miner/
Published Date: Wed, 01 Nov 2023 03:30:59 +0000
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