In the aftermath of the settlement between the U.S. Department of Justice and Binance, the world's largest cryptocurrency exchange, federal authorities are emphasizing the need for the exchange's former CEO, Changpeng Zhao (CZ), to remain in the United States until his sentencing in February 2024.
Justice Department's Effort to Restrict Ex-Binance CEO's Travel
A recent court filing discloses that U.S. prosecutors have urged Magistrate Judge Brian Tsuchida to ensure the continued presence of Changpeng Zhao (CZ) in the United States. This request, submitted on Wednesday, aims to reevaluate the bond conditions that were set on November 21, 2023. The U.S. government expresses concerns about CZ being a "substantial risk of flight."
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.
Currently residing in Dubai, United Arab Emirates (UAE), CZ resides with his three children and partner. The prosecutors argue that the possibility of an 18-month jail term might entice CZ to stay in the UAE with his family. The absence of an extradition treaty between the UAE and the U.S. adds complexity, making it difficult to ensure his return in case of non-compliance with court directives.
Concerns over the Bail Arrangement
Despite an initial agreement on a $175 million bail bond, prosecutors are now questioning its adequacy. According to the proposed arrangement, "three responsible persons" were expected to secure $15 million in cash for the bail. Although CZ faces the prospect of 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 a potential five-year prison term. However, as a first-time offender, he was granted two years of probation instead of incarceration. Hayes resolved his legal troubles by paying a $10 million fine for his offenses.
Share Your Thoughts
What are your thoughts and opinions on the prosecutor's concerns about CZ posing a flight risk? Feel free to share your views on this matter in the comments section below.
Frequently Asked Questions
Who is entitled to the gold in a IRA that holds gold?
The IRS considers anyone who owns gold to be “a form money” and therefore subject to taxation.
You must have gold at least $10,000 and it must be stored for at the least five years in order to take advantage of this tax-free status.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
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.
You should consult a financial planner or accountant to see what options are available to you.
How much of your portfolio should be in precious metals?
Before we can answer this question, it is important to understand what precious metals actually are. Precious Metals are elements that have a very high relative value to other commodities. They are therefore very attractive for investment and trading. Today, gold is the most commonly traded precious metal.
There are however many other types, including silver, and platinum. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It also remains relatively unaffected by inflation and deflation.
The general trend is for precious metals to increase in price with the overall market. But they don't always move in tandem with one another. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rates which makes bonds less appealing investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors choose safe assets such Treasury Bonds over precious metals. These precious metals are rare and become more costly.
You must therefore diversify your investments in precious metals to reap the maximum profits. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
Can the government take your gold?
The government cannot take your gold because you own it. You have earned it by working hard for it. It belongs to you. However, there may be some exceptions to this rule. You can lose your gold if you have been convicted for fraud against the federal governments. Your precious metals can also be lost if you owe tax to the IRS. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (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)
- 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)