New York Judge Hopes for Expedited SEC Decision on Celsius’ Repayment Proposal
Judge Martin Glenn, overseeing the bankruptcy of Celsius, has urged the U.S. Securities and Exchange Commission (SEC) to quickly decide whether to authorize the company's transformation into a crypto mining firm. During a court hearing, Glenn expressed his hope for an expedited decision-making process, considering the progress made by Celsius and its creditors in Chapter 11 proceedings. He stated, "The SEC will make whatever decision it believes is the correct one. 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 Proposal and Transformation Plan
The proposed plan aims to partially repay customers whose accounts have been frozen since before Celsius filed for bankruptcy in June 2022. The repayment will be made using a combination of cryptocurrency and stock in a newly publicly traded mining entity. Arrington Capital will lead the new management team of the mining entity. Judge Glenn intends to issue a ruling as soon as possible, but final approval from the securities regulator is still required. In the event that the plan fails, Celsius may face liquidation.
Challenges and Concerns
While the repayment proposal has garnered significant support from creditors, some of Celsius' customers are challenging it. They prefer liquidation as it would result in receiving more cryptocurrency rather than shares in a new firm that has yet to establish itself in the market. Additionally, there have been complaints about the fees paid to bankruptcy advisers who work to ensure creditor support for the plan.
SEC Lawsuit and Background
In July of this year, the SEC filed a lawsuit against Celsius, alleging fraudulent promises for the platform's "Earn Interest Program" and deceptive practices regarding the company's financial state. The SEC highlighted that investors were unable to withdraw billions of U.S. dollars in crypto assets when the business started to collapse.
The fate of Celsius Network's proposed transformation into a crypto mining firm now rests in the hands of the SEC. As Judge Glenn urges for a speedy decision, the outcome will have significant implications for Celsius, its creditors, and customers. The repayment proposal faces opposition from some customers who prefer liquidation, while others raise concerns about the fees paid to bankruptcy advisers. The SEC's decision will determine whether Celsius can successfully emerge from Chapter 11 or face liquidation.
Frequently Asked Questions
Should You Open a Precious Metal IRA?
Precious metals are not insured. This is the most important fact to know before you open an IRA account. It is impossible to get back money if you lose your investment. All your investments can be lost due to theft, fire or flood.
This type of loss can be avoided by investing in physical silver and gold coins. These items are timeless and have a lifetime value. These items are worth more today than they were when first produced.
When opening an IRA account, make sure you choose a reputable company offering competitive rates and high-quality products. It's also wise to consider using a third-party custodian who will keep your assets safe while giving you access to them anytime.
When you open an account, keep in mind that you won't receive any returns until your retirement. Don't forget the future!
How does a gold IRA work?
You can purchase physical gold bullion coins anytime. To invest in gold, you don't need to wait for retirement.
You can keep gold in an IRA forever. Your gold holdings will not be subject to tax when you are gone.
Your heirs inherit your gold without paying capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as a middleman between you and the IRS.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reports.
Once you've set up your gold IRA, it's possible to buy gold bullion. The minimum deposit required to purchase gold bullion coins is $1,000 If you make more, however, you will get a higher interest rate.
Taxes will apply to gold that you take out of an IRA. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.
A small percentage may mean that you don't have to pay taxes. However, there are exceptions. There are some exceptions. For instance, if you take out 30% or more from your total IRA assets, federal income taxes will apply plus a 20 percent penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. A violation of this rule can lead to severe financial consequences.
How much money should my Roth IRA be funded?
Roth IRAs allow you to deposit your money tax-free. The account cannot be withdrawn from until you are 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. 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 take out more than the initial contribution, you must pay tax.
The second rule is that you cannot withdraw your earnings without paying income taxes. Also, taxes will be due on any earnings you take. Let's take, for example, $5,000 in annual Roth IRA contributions. Let's further assume you earn $10,000 annually after contributing. Federal income taxes would apply to the earnings. You would be responsible for $3500 That leaves you with only $6,500 left. Since you're limited to taking out only what you initially contributed, that's all you could take out.
If you took $4,000 from your earnings, you would still owe taxes for the $1,500 remaining. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). So even though your Roth IRA ended up having $7,000, you only got $4,000.
There are two types: Roth IRAs that are traditional and Roth. A traditional IRA allows for you to deduct pretax contributions of your taxable income. To withdraw your retirement contribution balance plus interest, your traditional IRA is available to you. There are no restrictions on the amount you can withdraw from a Traditional IRA.
Roth IRAs are not allowed to allow you deductions for contributions. Once you are retired, however, you may withdraw all of your contributions plus accrued interest. There is no minimum withdrawal requirement, unlike traditional IRAs. Your contribution can be withdrawn at any age, not just when you reach 70 1/2.
Should You Buy or Sell Gold?
Gold was considered a safety net for investors during times of economic turmoil in the past. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Experts believe this could change soon. According to them, gold prices could soar if there is another financial crisis.
They also note that gold is increasingly popular because of its perceived intrinsic value and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- Consider first whether you will need the money to save for retirement. It is possible to save for retirement while still investing your gold savings. That said, gold does provide an additional layer of protection when you reach retirement age.
- 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. You may lose your gold coins and never be able to recover them.
You should do your research before buying gold. Protect your gold if you already have it.
Is it a good retirement strategy to buy gold?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
Physical bullion bar is the best way to invest in precious metals. But there are many other options for investing in gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you need cash flow to finance your investment, then gold stocks could be a good option.
You can also invest your money in exchange-traded fund (ETFs), which give you exposure to the gold price by holding securities related to gold. These ETFs may include stocks that are owned by gold miners or precious metals refining companies as well as commodity trading firms.
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- 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)
- 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 1990 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Lawful – WSJ
Guidelines for Gold Roth IRA
You should start investing early to ensure you have enough money for retirement. Start saving as soon and as often as you're eligible (usually around 50 years old) and keep going until retirement. You must contribute enough each year to ensure that you have adequate growth.
You can also take advantage of tax-free savings opportunities like a traditional 401k (k), SEP IRA (or SIMPLE IRA). These savings vehicles enable you to make contributions while not paying any taxes on the earnings, until they are withdrawn. This makes them a great choice for people who don’t have access employer matching funds.
The key is to save regularly and consistently over time. You'll miss out on any potential tax benefits if you're not contributing the maximum amount allowed.
By: Lubomir Tassev
Title: Judge Urges SEC Decision on Planned Celsius Restart as Crypto 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