The Week in Business: FTX’s Collapse

Author: Yuvi November 20, 2022

The Week in Business: FTX's Collapse


Crypto Chaos

In the course of days, the collapse of one of the largest cryptocurrency exchanges, FTX, has led to a series of revelations — about the corporate dysfunction inside FTX, the entangled personal lives of the people who ran it and what the exchange’s new leader said. appeared to be efforts to “conceal the misuse of customer funds.” The company has filed for bankruptcy, and federal prosecutors are now investigating what happened to the lost funds of possibly more than one million creditors. The downfall of Sam Bankman-Fried, the founder and former chief executive of FTX, has called into question the future of the crypto industry as well as that of a closely affiliated movement in which he heavily invested. That movement was centered on a moral philosophy known as effective altruism, and it financed itself in large part with donations from FTX’s philanthropic arm.

11 Years for Elizabeth Holmes

Elizabeth Holmes was sentenced to more than 11 years in prison on Friday, after being convicted on four counts of defrauding investors about the technology and business practices of Theranos, her failed blood-testing start-up. It was a lighter sentence than the maximum 20 years in prison she faced but still far tougher than the 18 months of house arrest her lawyers had sought. The decision was delivered by the same judge who oversaw Ms. Holmes’s trial last year, and in making it, he considered a cache of letters and documents filed by lawyers and prosecutors for the case. Included among them were family photos of Ms. Holmes, her partner, Billy Evans, and their son, as well as comments from figures like Senator Cory Booker, who praised Ms. Holmes’s “determination to make a difference.” Her critics viewed the case as an opportunity to send a message to other tech founders who may distort the truth in their quest for success in an industry where few executives are ever found guilty of fraud.

Twitter Turmoil, Continued

Given the ultimatum to leave Elon Musk’s Twitter or to stay at the company and “build a breakthrough Twitter 2.0,” some 1,200 employees appeared to choose to go on Thursday. They tendered their resignations hours before the 5 pm Eastern deadline that Mr. Musk set the day before in an email with the subject line, “A Fork in the Road.” The remaining staff, Mr. Musk wrote, would have to be “extremely hard core” and work long hours at a high intensity. Because the departures came on the heels of mass layoffs of about half of the company’s employees, there are growing questions about how the site will hold up. Vast swaths of Twitter’s work force have been eliminated, like the communications department, which no longer exists, and the platform’s infrastructure teams, which are virtually nonexistent. On Friday, Mr. Musk asked “anyone who actually writes software” to report to the 10th floor of Twitter’s headquarters.

Let the Shopping Begin

There is much to suggest that despite the crushing inflation consumers experienced this year, many intend to shop enthusiastically this holiday season. Retail sales rose 1.3 percent last month, beating expectations, as retailers like Amazon, Target and Kohl’s offered earlier-than-usual holiday deals. The rise in sales coincided with the first signs of moderating inflation: In October, prices climbed 7.7 percent from a year earlier, still at a quick pace but down from 8.2 percent in September. But shoppers’ zeal for holiday sales indicated that they were looking for discounts, adding to the pressure on retailers—who not that long ago wielded more power to price products as they pleased—to lower prices. At Target, for example, demand tapered off when those sales ended. What has changed from last season? Consumers had saved more money in 2021, and were spending on clothes and electronics as they emerged from pandemic lockdowns. This year, customers have been much more worried about rising prices and have cut down on discretionary spending.

20 November, 2022, 5:30 pm

News Cinema on twitter News Cinema on facebook

Sunday, 20th November 2022

More Stories
World Cup star ordered to trim oak in his garden ahead of tonight’s quarter-final clash with France
Transgender Americans Feel Under Siege as Political Vitriol Rises
Wish you were here. Ignore the Floods and Fires.
‘The Only People They Hit Were Black’: When a Race Riot Roiled New York
In Today’s NFL, Good Backups Pay Off (and Are Getting Paid)
Festive revelers brave freezing temperatures to hit the town in the run-up to Christmas
Taylor Swift’s Directorial Debut Soon? Deets inside
Hot alert! Deepika Padukone stunner in a yellow bikini set from Pathaan’s first song ‘Pesharam Rang’.
King Charles’ coronation: ‘Don’t think Harry will ever be welcome in England,’ shares royal expert
Critics say Musk has revealed himself as a conservative. It’s Not So Simple.
Kansas oil spill is biggest breach in Keystone pipeline history
Cops who can’t crack Idaho murder case now threaten internet sleuths with ‘criminal charges’
Paul Pelosi ‘looks like Frankenstein’, daughter Alexandra jokes, but worries about ’emotional scars’
NFL Owner by Day, Rock ‘n’ Roller by Night
China’s Looming ‘Tsunami’ of Covid Cases Will Test Its Hospitals
University of California Academic Workers Partly End Strike
African journalist Simon Ateba accuses White House Press Secretary of discrimination
LeBron James leads outpouring of grief over Grant Wahl’s shocking death at the World Cup
Amazon Prime to pay woman $40K to watch three months of TV
Mackay car crash: Kylie Burrage’s impact statement after husband Scott Burrage’s fatal Mirani crash
Jeff Bezos’ girlfriend Lauren Sanchez celebrates 53rd birthday with Kim Kardashian and Kris Jenner
Day 10: The Secrets of Being Santa
Viktor Bout tells Russian state news he isn’t ‘valuable’ despite Brittney Griner prison swap
Kari Lake Sues Arizona’s Largest County, Seeking to Overturn Her Defeat
North Carolina family of unvaccinated 14-year-old search for a medical center for kidney transplant
Cathy Areu, the Liberal Sherpa, is charged with kidnapping and stealing from her own mom
Mongols bikie Josh Rider murdered Paul Virgona 22 days after claiming love had changed him
Box Covering Columbus Statue in Philadelphia Must Be Removed, Court Rules
Republicans renew their calls for Biden’s nonbinary energy official Sam Brinton to be fired
Soccer Journalist Dies at World Cup After Collapsing at Argentina Game
New York Loosens Rules on Locations for Weed Dispensaries
A Two-Goal Lead Disappears, So Argentina Has to Do It the Hard Way
Joseph Kittinger, a Record-Setter High in the Skies, Dies at 94
The End of Griner’s Detention Begins a New Wave of WNBA Activism
‘Ain’t No Mo’ to Close on Broadway
Netflix DIDN’T get permission from the BBC to show Diana’s Panorama interview
Sinema Adds Intrigue and Democratic Fury to Arizona’s 2024 Senate Race
Letters Helped Brittney Griner Survive. Here’s one for her future.
Leaders Back Away From Raising Debt Ceiling, Punting Clash To New Congress
Lina Khan, Aiming to Block Microsoft’s Activision Deal, Faces a Challenge