Introduction
The U.K. Metropolitan Police have made a significant breakthrough in the fight against cryptocurrency fraud. They have seized more than 61,000 bitcoins, worth over $2.6 billion, from a massive investment fraud conducted by a Chinese fugitive. The seizure marks one of the largest cryptocurrency confiscations globally and highlights the growing concern around fraudulent activities in the digital asset space.
The Seizure
During the trial of Jian Wen, a British citizen accused of money laundering, the prosecution revealed that the seized bitcoins were linked to an investment fraud masterminded by Zhimin Qian, also known as Yadi Zhang. Qian allegedly stole approximately $6.4 billion from over 128,000 investors between 2014 and 2017 in China.
The U.K. police discovered the illicit funds in four separate devices, which were stored in a safety deposit box and a residence shared by Wen and Zhang. The bitcoins were valued at nearly $1.8 billion when they were recovered in July 2021. Since then, the price of bitcoin has appreciated, bringing the current value of the seized assets to $2.6 billion.
The Accused
Jian Wen, who moved to the U.K. from China in 2007 and became a British citizen in 2018, pleaded not guilty to involvement in the underlying fraud. However, she is accused of knowingly aiding the conversion of Zhang's bitcoins into various assets, including cash, jewelry, luxury items, and property. Wen was entrusted with the passwords and passphrases to access the laptops containing the bitcoins, as well as the storage location of the devices.
An International Effort
This seizure is not an isolated event. It comes on the heels of another significant bitcoin confiscation in Germany. The Saxony state police recently revealed that they have seized around 50,000 bitcoins, making it the largest seizure of its kind in the country's history. These coordinated efforts by law enforcement agencies around the world demonstrate a united front against cryptocurrency-related crimes.
The Implications
This high-profile seizure sends a strong message to individuals involved in cryptocurrency fraud. It highlights the determination of law enforcement agencies to crack down on illegal activities within the digital asset space. The size and scale of the fraud, as well as the subsequent seizure, underscore the need for increased vigilance and regulation to protect investors and maintain the integrity of the cryptocurrency market.
Conclusion
The U.K. police's successful seizure of 61,000 bitcoins from a massive investment fraud in China is a significant milestone in the fight against cryptocurrency-related crimes. This case serves as a wake-up call for both criminals and legitimate participants in the digital asset space. As the cryptocurrency market continues to evolve, it is crucial to establish robust security measures and regulatory frameworks to safeguard investors and ensure the long-term viability of cryptocurrencies.
What are your thoughts on the U.K. police's seizure of 61,000 bitcoins from a massive fraud in China? Share your opinions in the comments section below.
Frequently Asked Questions
How can you withdraw from a Precious metal IRA?
If you have a precious IRA company such Goldco International Inc. account, you may be tempted to withdraw your funds. If you decide to sell your metals this way, they will be much more valuable than if they were inside the account.
If you are unsure how to withdraw money from your precious metal IRA, here is what you need to know.
First, find out whether your precious metal IRA provider allows withdrawals. Some companies offer this option while others do not.
Second, find out if you are eligible for tax-deferred gains from selling your metals. This benefit is offered by most IRA providers. Some do not, however.
Third, check with your precious metal IRA provider to see if any fees are associated with taking these steps. The withdrawal may cost extra.
Fourth, keep track of your precious metal IRA investments for at least three years after you sell them. This means that you must wait until January 1st of each year to calculate capital gain on your investment portfolio. Follow the instructions on Form 8949 to calculate the gain.
You must file Form 8949 and also report any sale of precious metals to IRS. This will ensure that you pay taxes on any profit earned from your sale.
Finally, consult a trusted accountant or attorney before selling your precious metals. These professionals can ensure that you adhere to all procedures and avoid costly errors.
What kind of IRA can you use to hold precious metals in?
Most financial institutions and employers offer an Individual Retirement Account (IRA). This is an investment vehicle that most people can use. An IRA allows you to contribute money that is tax-deferred until it is withdrawn.
An IRA allows you to save taxes and pay them later when you retire. This means that you can deposit more money into your retirement plan than have to pay taxes on it tomorrow.
An IRA is a great investment because your earnings and contributions are tax-free. You can withdraw funds at any time. Early withdrawals are subject to penalties.
After age 50, you can make additional contributions to an IRA without penalty. If you decide to withdraw your IRA from retirement, you will owe income taxes as well as a 10% federal penalty.
Refunds received before the age of 591/2 are subject to a penalty of 5% from the IRS. A 3.4% IRS penalty is applicable to withdrawals made between the ages of 59 1/2 and 701/2.
There is a 6.2% penalty for withdrawals over $10,000 per calendar year.
How to Open a Precious Metal IRA
A self-directed Roth Individual Retirement Account is the best way to open a IRA for precious metals.
This account is better compared to other types because you don’t need to pay any taxes until you withdraw the investments.
This makes it attractive to those who want a tax break but still want to save some money.
You do not have to only invest in gold and silver. If it meets the IRS guidelines, you can invest in any asset that interests you.
Many people think only of silver and gold when they hear the word “precious metallic” but there are other types.
Examples include platinum, palladium and rhodium.
There are several ways you can invest in precious metals. You can buy bullion coins or bars, or shares in mining businesses.
Bullion Coins & Bars
One of the most straightforward ways to invest is to buy bullion coin and bars. Bullion is a general term that refers to physical ounces of gold and silver.
Bullion bars and coins can be purchased to receive actual pieces.
Although you may not be able to see any change immediately after purchasing bullion bars and coins at a shop, you will soon notice some positive effects.
You will receive a tangible piece if history, for example. Every coin and every bar has a unique story.
If you compare the nominal value to face value, you will often find that it is worth much less than its nominal. When it was first introduced in 1986, the American Eagle Silver Coin cost only $1.00 per troy ounce. However, today, an American Eagle Silver Coin is more than $40.00 per Ounce.
Many investors prefer bullion coins and bullion bar to futures contracts because of the dramatic increase in bullion's value.
Mining Companies
Investing in shares of mining companies is another great option for those looking to buy precious metals. When you invest in mining businesses, you are investing in their ability to produce silver and gold.
You will be paid dividends that are based on the company’s profits. These dividends can then be used to pay out shareholders.
Additionally, you will be able to take advantage of the company's potential growth. As demand for the product increases, so should the share prices of your company.
These stocks can fluctuate in value so it is important to diversify your portfolio. This is how you spread your risk across different companies.
But, remember that mining companies, like all stock market investments, are susceptible to financial loss.
Your ownership stake could become worthless if the price of gold falls significantly.
The Bottom Line
Precious metals such as gold and silver provide a haven during economic uncertainty.
Silver and gold, however, can experience wild swings in their prices. You might be interested in long-term investments in precious metals. Consider opening a precious metals IRA with a reputable company.
You will be able to take advantage of tax incentives while also benefiting from physical assets.
Is gold IRAs a good way to invest?
Purchase shares in mining companies to invest in precious metals like gold. To make money in investing in gold or other precious metals, such as silver, you should purchase shares in these companies.
However, there are two drawbacks to owning shares directly:
You can lose money if you hold onto your stock too long. Stocks will fall faster than the underlying asset (like a gold mine) when they drop. This could mean that you lose money rather than making it.
Second, you may miss out on potential profits if you wait until the market recovers before selling. Be patient and wait for the market's recovery before you make any profits from your gold holdings.
Physical gold can be beneficial if you prefer to keep investments separate from your finances. An IRA with gold can diversify and protect your portfolio against inflation.
Visit our website to find out more about investing in gold.
Statistics
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- Silver must be 99.9% pure • (forbes.com)
External Links
investopedia.com
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
takemetothesite.com
kitco.com
How To
How to change your IRA to a gold IRA
Do you want to change your retirement savings away from a traditional IRA and into a golden IRA? Well, this article will help you do just that. Here's how you can do it.
Rolling over is the process of transferring money from one type of IRA to another. This is done because tax advantages go along with rolling over an account. Some prefer to invest directly in physical assets like precious and rare metals.
There are two types IRAs – Traditional IRAs, and Roth IRAs. The difference between the two accounts is simple. Roth IRAs have no tax deductions, but Traditional IRAs can deduct taxes. This means that if you have $5,000 invested in a Traditional IRA, you will only be able take out $4850 after five years. The Roth IRA would allow you to keep every cent if you invested the same amount.
These are the things you need to know if your goal is to convert from a traditional IRA or a gold IRA.
First, you must decide whether to move your balance into a new bank account or transfer funds from your existing account to the new one. You will pay income tax on earnings above $10,000 when you transfer money. You can rollover your IRA to avoid paying income tax until you are 59 1/2.
Once you have decided to open a new bank account, You'll likely be required to provide proof of identities, such as a Social Security card, passport, and birth certificate. Next, you will need to complete paperwork proving your ownership of the IRA. Once you've completed the forms, you'll submit them to your bank. After verifying your identity, they will give you instructions about where to send wire transfers or checks.
Now comes the fun part. The fun part is when you deposit cash into the account, and then wait for the IRS approval. After approval, you'll receive a letter stating that funds can be withdrawn.
That's it! Now all you have to do is sit back and watch the money grow. Remember that if you are unsure whether you want to convert your IRA, it is possible to close it and roll the balance over into a new IRA.
—————————————————————————————————————————————————————————————-
Based on [POSTTITLE]
by [POSTAUTHOR]
