The U.K. Metropolitan Police have reportedly seized more than 61,000 bitcoins from a massive Chinese investment fraud. A British citizen is accused of laundering bitcoin for a Chinese fugitive who allegedly stole roughly $6.4 billion from more than 128,000 investors.
One of the Largest Cryptocurrency Seizures Globally
The U.K. Metropolitan Police have seized more than 61,000 bitcoins from a massive investment fraud in China, marking one of the largest cryptocurrency seizures globally, the Financial Times reported Tuesday.
Background of the Case
The bitcoin seizure information was disclosed during a trial of 42-year-old Jian Wen, who is accused of laundering bitcoin for her former employer, Zhimin Qian (also known as Yadi Zhang), an alleged fugitive from China. Wen moved to the U.K. in 2007 from China and became a British citizen in 2018.
At the start of the trial at Southwark Crown Court on Monday, the prosecution informed the jury that the seized BTC originated from an investment fraud conducted by Zhang in China between 2014 and 2017. The U.K. police seized four separate devices containing more than 61,000 bitcoins from a safety deposit box and a residence shared by Wen and Zhang in 2018. The seized bitcoin was valued at nearly $1.8 billion in July 2021 when the police recovered the coins. It has appreciated to $2.6 billion, based on today's price of $43,049 per BTC.
Alleged Theft and Escape
Zhang allegedly stole $6.4 billion from over 128,000 investors and converted the money into BTC. Prosecutors say she entered London in 2017 using a false identity, but has since fled the U.K. and remains at large.
The Accusations Against Wen
While pleading not guilty to involvement in the underlying fraud, Wen is accused of knowingly aiding the conversion of Zhang's bitcoin into cash, jewelry, luxury items, and property. Gillian Jones KC, counsel for the Crown Prosecution Service, was quoted by the Financial Times as saying:
"Ms. Wen had been trusted not only with copies of the passwords and passphrases to access the laptops [containing the bitcoin] but with access to where the laptops were being stored."
Similar Case in Germany
This week, the Saxony state police in Germany also revealed that around 50,000 bitcoins have been seized in a case they described as "the most extensive seizure of bitcoins by law enforcement authorities in the Federal Republic of Germany to date."
What do you think about the U.K. police seizing 61,000 bitcoins from a massive fraud in China? Let us know in the comments section below.
Frequently Asked Questions
What are the benefits of a Gold IRA?
The best way to invest money for retirement is by putting it into an Individual Retirement Account (IRA). You can withdraw it at any time, but it is tax-deferred. You control how much you take each year. There are many types of IRAs. Some are more suitable for students who wish to save money for college. Some are for investors who seek higher returns. Roth IRAs permit individuals to contribute after the age 59 1/2. Any earnings earned at retirement are subject to tax. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This account may be worth considering if you are looking to retire earlier.
Because you can invest money in many asset classes, a gold IRA works similarly to other IRAs. Unlike a regular IRA you don't need to worry about taxes while you wait for your gains to be available. This makes gold IRA accounts a great choice for those who want their money to be invested, not spent.
You can also enjoy automatic withdrawals, which is another benefit of owning your gold through an IRA. This eliminates the need to constantly make deposits. To avoid missing a payment, direct debits can be set up.
Gold is one of today's most safest investments. Because it isn't tied to any particular country its value tends be steady. Even in times of economic turmoil gold prices tend to remain stable. As a result, it's often considered a good choice when protecting your savings from inflation.
How much money should I put into my Roth IRA?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. These accounts cannot be withdrawn until you turn 59 1/2. You must adhere to certain rules if you are going to withdraw any of your contributions prior. First, you can't touch your principal (the initial amount that was deposited). 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. Withdrawing your earnings will result in you paying taxes. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's further assume you earn $10,000 annually after contributing. You would owe $3,500 in federal income taxes on the earnings. The remaining $6,500 is yours. Because you can only withdraw what you have initially contributed, this is all you can take out.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. On top of that, you'd lose half of the earnings you had taken out because they would be taxed again at 50% (half of 40%). So even though you received $7,000 in Roth IRA contributions, you only received $4,000.
Two types of Roth IRAs are available: Roth and traditional. Traditional IRAs allow you to deduct pretax contributions from your taxable income. You can withdraw your contributions plus interest from your traditional IRA when you retire. You have the option to withdraw any amount from a traditional IRA.
A Roth IRA doesn't allow you to deduct your contributions. But once you've retired, you can withdraw the entire contribution amount plus any accrued interest. There is no minimum withdrawal amount, unlike traditional IRAs. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
Can I buy or sell gold from my self-directed IRA
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals may contribute up to $1,000 ($2,000 if married, filing jointly) directly into a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in 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.
What is the Performance of Gold as an Investment?
The supply and the demand for gold determine how much gold is worth. It is also affected negatively by interest rates.
Because of their limited supply, gold prices can fluctuate. You must also store physical gold somewhere to avoid the risk of it becoming stale.
How does a Gold IRA account work?
You can purchase gold bullion coins in physical form at any moment. You don’t have to wait to begin investing in gold.
An IRA allows you to keep your gold forever. Your gold holdings won't be subject to taxes when you pass away.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. Because your gold doesn't belong to the estate, it's not necessary to include it on your final estate plan.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've completed this step, an IRA administrator will be appointed to your account. This company acts in the role of a middleman between your IRS agent and you.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reports.
Once your gold IRA is established, you can purchase gold bullion coins. The minimum deposit required to purchase gold bullion coins is $1,000 You'll get a higher rate of interest if you deposit more.
Taxes will apply to gold that you take out of an IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
Even if your contribution is small, you might not have to pay any taxes. There are exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
Avoid taking out more that 50% of your total IRA assets each year. A violation of this rule can lead to severe financial consequences.
Is it possible to hold a gold ETF within a Roth IRA
A 401(k) plan may not offer this option, but you should consider other options, such as an Individual Retirement Account (IRA).
Traditional IRAs allow for contributions from both employees and employers. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money invested in the ESOP is then taxed at lower rates than if it were held directly in the hands of the employee.
A Individual Retirement Annuity (IRA), is also available. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions made to IRAs are not taxable.
How is gold taxed in an IRA?
The fair market value of gold sold is the basis for tax. When you purchase gold, you don't have to pay any taxes. It is not considered income. If you sell it later, you'll have a taxable gain if the price goes up.
You can use gold as collateral to secure loans. Lenders try to maximize the return on loans that you take against your assets. For gold, this means selling it. The lender might not do this. They may just keep it. Or, they may decide to resell the item themselves. In either case, you risk losing potential profits.
You should not lend against your gold if it is intended to be used as collateral. Otherwise, it's better to leave it alone.
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (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)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Are You a Good Candidate for a Gold IRA
- What are the Options? Types, Spreads, Example, and Risk Metrics
- Yahoo Finance – Barrick Gold Corporation Stock Price, News & Quote – Barrick Gold Corporation (GOLD).
Tips for Investing in Gold
Investing in Gold is one of the most popular investment strategies worldwide. There are many advantages to investing in Gold. There are several ways to invest in gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.
Before you purchase any type or gold, here are some things to think about.
- First, check to see if your country permits you to possess gold. If the answer is yes, you can go ahead. If not, you may want to consider purchasing gold from overseas.
- The second is to decide which kind of gold coin it is you want. You can go for yellow gold, white gold, rose gold, etc.
- The third factor to consider is the price for gold. Start small and move up. One thing that you should never forget when purchasing gold is to diversify your portfolio. Diversify your investments in stocks, bonds or real estate.
- Remember that gold prices are subject to change regularly. Therefore, you have to be aware of current trends.
By: Kevin Helms
Title: British Police Seize Over 61,000 Bitcoins in Massive Chinese Investment Fraud
Sourced From: news.bitcoin.com/uk-police-seize-61000-bitcoins-from-huge-chinese-investment-fraud/
Published Date: Fri, 02 Feb 2024 00:30:35 +0000