Former General Counsel Shocked by Secret Transfers
Can Sun, the former general counsel of FTX, testified in federal court on Thursday, revealing his shock at discovering that FTX founder, Sam Bankman-Fried (SBF), had secretly transferred billions of dollars in customer funds to his hedge fund, Alameda Research. Sun told prosecutors that he resigned from his position the day after realizing the extent of the misappropriation, as spreadsheets indicated that $7 billion was missing.
Funds Had Been Misappropriated, Says Sun
During his testimony, Sun expressed his astonishment at the situation, stating, "I was shocked. There were $7 billion missing." He further revealed that after reviewing FTX spreadsheets provided by prosecutors, he concluded that "funds had been misappropriated." Sun's testimony was made public by Matthew Russell Lee from the Inner City Press.
Resignation and Lackluster Response
Sun shared that he tendered his resignation as general counsel the day after uncovering the fraudulent transfers, despite having joined FTX from the law firm Fenwick & West. Sun claimed that he addressed his concerns with SBF, but the response he received was underwhelming. "I expected a bigger response. But all [SBF] said was, 'Got it.' He didn't seem surprised," Sun remarked about Bankman-Fried's calm reaction.
Legal Justification and Employment Connection
According to Sun, SBF asked him to provide a "legal justification" for the missing billions when a private equity firm inquired. However, Sun stated that SBF did not offer any explanations for the transfers. During cross-examination, SBF's attorney, Mark Cohen, discussed Sun's FTX employment contract, which revealed $3.5 million in loans and bonuses from Alameda Research. When asked if the two were connected, Sun replied, "Well, they were both about my employment."
Non-Prosecution Agreement and Encrypted Messaging
Sun admitted to signing a non-prosecution agreement with prosecutors, which required him to provide truthful testimony. When questioned by Cohen about the consequences of not telling the truth, Sun responded with a simple "yes." SBF's attorney also inquired about the use of encrypted messaging apps by the legal department, but Sun did not provide a direct response.
Cooperating Executives and Potential Consequences
Sun's testimony followed the cooperation of former FTX and Alameda executives Caroline Ellison, Gary Wang, and Nishad Singh, who pleaded guilty to related charges. If convicted of fraud and conspiracy charges, Bankman-Fried could face over 100 years in prison. However, he has pleaded not guilty.
What are your thoughts on Sun's testimony and the $7 billion that went missing? Share your opinions in the comments section below.
Frequently Asked Questions
What are the benefits to having a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It will be tax-deferred up until the time you withdraw it. You control how much you take each year. There are many types and types of IRAs. Some are better for those who want to save money for college. Others are designed for investors looking for 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 account is a good option if you plan 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 which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. This makes gold IRA accounts excellent options for people who prefer to keep their money invested instead of spending it.
Another advantage to owning gold via an IRA is the ease of automatic withdraws. This means that you don't need to worry about making monthly deposits. Direct debits could be set up to ensure you don't miss a single payment.
Finally, the gold investment is among the most reliable. It is not tied to any country so its value tends stay steady. Even during economic turmoil the gold price tends to remain fairly stable. This makes it a great investment option to protect your savings from inflation.
What proportion of your portfolio should you have in precious metals
This question can only be answered if we first know what precious metals are. Precious metals are those elements that have an extremely high value relative to other commodities. They are therefore very attractive for investment and trading. Gold is currently the most widely traded precious metal.
However, many other types of precious metals exist, including silver and platinum. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It is also not affected by inflation and depression.
The general trend is for precious metals to increase in price with the overall market. They do not always move in the same direction. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
However, when an economy is strong, the reverse 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.
Diversifying across precious metals is a great way to maximize your investment returns. It is also a good idea to diversify your investments in precious metals, as prices tend to fluctuate.
Should You Get 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.
Some experts think that this could change in the near future. According to them, gold prices could soar if there is another financial crisis.
They also point out that gold is becoming popular because of its perceived value and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- Consider whether you will actually need the money that you are saving for retirement. You can save money for retirement even if you don't invest in gold. The added protection that gold provides when you retire is a good option.
- Second, ensure you fully understand the risks involved in buying gold. Each one offers different levels security and flexibility.
- Don't forget that gold does not offer the same safety level as a bank accounts. It is possible to lose your gold coins.
Don't buy gold unless you have done your research. Make sure to protect any gold you already own.
What precious metals could you invest in to retire?
The best precious metal investments are gold and silver. They are both simple to purchase and sell, and they have been around for a long time. You should add them to your portfolio if you are looking to diversify.
Gold: This is the oldest form of currency that man has ever known. It is stable and very secure. It's a great way to protect wealth in times of uncertainty.
Silver: Silver is a popular investment choice. It's a great option for those who want stability. Silver tends instead to go up than down, which is unlike gold.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It's like silver or gold in that it is durable and resistant to corrosion. However, it's much more expensive than either of its counterparts.
Rhodium. Rhodium is used as a catalyst. It is also used as a jewelry material. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also more affordable. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
What precious metal should I invest in?
The answer to this question depends on how much risk you are willing to take and what type of return you want. Although gold has been considered a safe investment, it is not always the most lucrative. For example, if you need a quick profit, gold may not be for you. If you have time and patience, you should consider investing in silver instead.
If you're not looking to make quick money, gold is probably your best choice. Silver might be a better investment option if steady returns are desired over a long period of time.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- 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)
- 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 1989 – WSJ
- How do you keep your IRA Gold at Home? It's not exactly legal – WSJ
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Online buying gold and silver is the best way to purchase it.
You must first understand the workings of gold before you can purchase it. The precious metal gold is similar to platinum. It's very rare, and it is often used as money for its durability and resistance. It's hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
There are two types currently available: legal tender and bullion. Legal tender coins are minted for circulation in a country and usually include denominations like $1, $5, $10, etc.
Bullion coins are minted for investment purposes only, and their values increase over time due to inflation.
They aren't circulated in any currency exchange systems. If a person purchases $100 worth of gold, 100 grams of the gold will be given to him/her. The $100 value is $100. Each dollar spent earns the buyer 1 gram gold.
You should also know where to buy your gold. There are a few options if you wish to buy gold directly from a dealer. You can start by visiting your local coin shop. You could also look into eBay or other reputable websites. You can also look into buying gold online from private sellers.
Individuals who sell gold at wholesale and retail prices are called private sellers. You pay a commission fee between 10% and 15% for each transaction when you sell gold through private sellers. A private seller will usually return less money than a coin shop and eBay. This is a great option for gold investing because you have more control over the item’s price.
Another way to buy gold is by investing in physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. Physical gold should be stored in an impenetrable container, such a vault and safety deposit box to ensure its safety.
You can either visit a bank, pawnshop or bank to buy gold. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. Customers can borrow money from pawnshops to purchase items. Banks charge higher interest rates than those offered by pawn shops.
You can also ask for help to purchase gold. Selling gold is also easy. Contact a company such as GoldMoney.com, and you can set up a simple account and start receiving payments immediately.
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