The judge presiding over the Tornado Cash case delivered a crucial oral ruling today, dealing a significant blow to the Defense by dismissing both their motion to compel discovery and their motion to dismiss the charges. This ruling has far-reaching implications for developers and projects in the future.
Motion to Compel
The Defense's motion to compel discovery aimed to gain access to a wide array of government communications, including exchanges with foreign authorities under the Mutual Legal Assistance Treaty (MLAT) and with domestic agencies like the Office of Foreign Assets Control (OFAC) and the Financial Crimes Enforcement Network (FinCEN). The Defense argued that these materials were crucial for understanding the government's case and could potentially contain exculpatory evidence, citing Federal Rule of Criminal Procedure 16. However, the judge emphasized that the Defense must demonstrate the materiality of the requested information to their case, rather than relying on speculation.
The court dismissed the Defense's arguments as speculative, pointing out that references to what the information "might" or "could" reveal do not meet the standard for materiality. The Defense's claim that MLAT communications with the Dutch government could shed light on the evidence against Tornado Cash was deemed unpersuasive, with the judge stressing that materiality cannot be established through conjecture.
Similarly, the Defense's request for all communications between the government and OFAC and FinCEN was rejected. The judge concluded that the Defense failed to show a direct relevance between these communications and the charges. The Defense's suggestion for an in-camera review of the documents was also declined, with the judge highlighting the dangers of granting such requests based on speculation.
Motion to Dismiss
The motion to dismiss raised significant issues, particularly regarding the definition of a "money transmitter" under the Bank Secrecy Act (BSA). The Defense argued that Tornado Cash did not qualify as a money transmitter as it did not control users' funds but only facilitated cryptocurrency movement. However, the judge disagreed, stating that Tornado Cash's role in facilitating cryptocurrency transactions was sufficient to classify it as a money transmitter.
The court also addressed the Defense's reliance on the 2019 FinCEN guidance, emphasizing that the guidance's standards for wallet providers do not extend to mixers like Tornado Cash. Additionally, the judge discussed the distinction between expressive and functional code under the First Amendment, highlighting that using code to facilitate illegal activities falls outside the realm of protected speech.
In conclusion, the judge's ruling sets a precedent for accountability in the digital economy, emphasizing the importance of distinguishing between protected speech and conduct, especially in the evolving landscape of technologies like blockchain.
Frequently Asked Questions
How is gold taxed in Roth IRA?
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. Dividends and capital gains are exempt from tax. Capital gains only apply to investments more than one years old.
Each state has its own rules regarding these accounts. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . In Massachusetts, you can wait until April 1st. New York has a maximum age limit of 70 1/2. To avoid penalties, you should plan ahead and take distributions as soon as possible.
What Precious Metals Can You Invest in for Retirement?
These precious metals are among the most attractive investments. They are both simple to purchase and sell, and they have been around for a long time. These are great options to diversify your portfolio.
Gold: Gold is one the oldest forms currency known to man. It is very stable and secure. This makes it a good option to preserve wealth in uncertain times.
Silver: Investors have always loved silver. This is a great choice for people who want to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It is very durable and resistant against corrosion, much like silver and gold. However, it's much more expensive than either of its counterparts.
Rhodium: The catalytic converters use Rhodium. It is also used in jewelry-making. It's also relatively inexpensive compared to other precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It's also much more affordable. This is why it has become a favourite among investors looking for precious metals.
Are gold investments a good idea for an IRA?
Gold is an excellent investment for any person who wants to save money. It can be used to diversify your portfolio. But there is more to gold than meets the eye.
It's been used as a form of payment throughout history. It is often called “the most ancient currency in the universe.”
Gold is not created by governments, but it is extracted from the earth. That makes it very valuable because it's rare and hard to create.
The price of gold fluctuates based on supply and demand. If the economy is strong, people will spend more money which means less people can mine gold. This results in gold prices rising.
On the flipside, people may save cash rather than spend it when the economy slows. This causes more gold to be produced, which lowers its value.
This is why it makes sense to invest in gold for individuals and companies. You'll reap the benefits of investing in gold when the economy grows.
Also, your investments will earn you interest which can help increase your wealth. You won't lose your money if gold prices drop.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
cftc.gov
bbb.org
irs.gov
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
3 Ways to Invest Gold for Retirement
It is important to understand the role of gold in your retirement plan. There are several options to invest in precious metals if your employer has a 401k. You may also want to consider investing in gold outside of your workplace. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. If precious metals aren't your thing, you may be interested in buying them from a dealer.
These are three easy rules to remember if you invest in gold.
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, put cash into your accounts. This will help protect you against inflation and keep your purchasing power high.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. It's easier to sell physical gold coins rather than certificates. Physical gold coins don't require storage fees.
- Diversify Your Portfolio. Never place all your eggs in the same basket. By investing in multiple assets, you can spread your wealth. This helps reduce risk and gives you more flexibility during market volatility.
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By: Colin Crossman
Title: The Tornado Cash Case: Judge Rejects Defense Motions and Sets Precedent
Sourced From: bitcoinmagazine.com/legal/tornado-cash-loses-motion-to-dismiss
Published Date: Fri, 27 Sep 2024 13:52:18 GMT
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