FirstFT: FTX founder Sam Bankman-Fried convicted of fraud

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The founder of FTX, Sam Bankman-Fried, has been found guilty of fraudulent activities and money laundering. This decision is expected to result in a lengthy prison sentence for the former cryptocurrency magnate and will support the efforts of American authorities to regulate the financial industry.

Yesterday evening, the jury consisting of nine females and three males went through the evidence and discussed for less than five hours before giving their verdict. The defendant was facing seven charges related to wire fraud, conspiracy to commit securities fraud, and money laundering against FTX customers. The result of the decision was that he was found guilty on all counts.

Bankman-Fried stood still and serious as he faced the jury in a crowded federal court in Manhattan. He didn't show much emotion as the verdict was announced. In the audience, Bankman-Fried's parents, Joe Bankman and Barbara Fried, hugged each other and looked sad.

Not long after the decision was made, Damian Williams, a US attorney, stated that Bankman-Fried had performed a deceitful act "with the intention of becoming the top player in the crypto world". Williams believes that although the industry of digital currencies is relatively fresh, this type of dishonesty is something that has existed forever.

Bankman-Fried's lawyer, Mark Cohen, has stated that they acknowledge the ruling of the jury but are dissatisfied with the outcome. He added that Bankman-Fried asserts his innocence and is committed to challenging the allegations against him relentlessly. The businessman intends to contest the decision in an appeal, and the sentencing is scheduled for March 28th.

The judgment of guilt emerged almost twelve months after FTX slipped into insolvency and signifies the conclusion of the most noteworthy trial associated with cryptocurrency so far. Here are additional details regarding this significant ruling.

And here's what I'm keeping an eye on today and over the weekend:

The ongoing conflict between Israel and Hamas has prompted US secretary of state, Antony Blinken, to visit Israel for discussions with its government. He aims to advocate for a temporary cease-fire. Hassan Nasrallah, the head of Hizbollah (a Lebanese militant group supported by Iran), is anticipated to speak publicly for the first time since the start of the war, likely rallying support from his followers.

The month of October will see the release of labour data from both the United States and Canada. Additionally, the Institute for Supply Management's services purchasing managers' index will be closely monitored as it provides insights on the state of the US services sector.

Investors are looking forward to the release of results from Berkshire Hathaway, which is owned by Warren Buffett. The results are particularly important because the stock market has been going down and borrowing costs have been going up. This means investors are very interested in seeing how well Berkshire Hathaway has done during this challenging time.

In the coming week, there's going to be a follow-up to the FT-Nikkei Investing in America Summit happening in Miami. The summit brings together key officials from international companies and representatives from city, state, and federal institutions to discuss economic forecasts for the US. You can attend the event on either November 7 in person or online. Sign up now.

Catch Up On Five More News Stories

An insider report reveals that BlackRock, a leading investment firm, predicts that the benchmark US borrowing costs will remain around 5.5 per cent for the next five years. Apparently, this projection stems from concerns about inflation. The current ten-year Treasury yields are at 4.7 per cent, but according to the BlackRock Investment Institute's leader, the market will experience even greater rates. Here are the factors contributing to this outlook.

Apple's stocks dropped by almost 3% during after-hours trading after their third-quarter report was released. The report did not alleviate the apprehension which Wall Street had about the weak future of Apple's hardware ventures and the possibility of difficulties in the company's position in China, despite the unexpected positive results achieved by the services division. Additional information about the outcome of Apple's report can be found below.

Antitrust regulators in the US have accused Amazon of using a secret algorithm to manipulate prices, resulting in over $1 billion in additional profit for the tech company.

María Corina Machado, a leader of the opposition in Venezuela, has made a firm promise that she will be running in the upcoming presidential election in spite of her disqualification from holding public office and the aggressive campaigns by the current president, Nicolás Maduro, to undermine her victory in the primaries. She reportedly told the Financial Times that she is confident that Maduro will be defeated. However, this ban will certainly cause issues for the Biden administration.

Biden took a risk on Venezuela, but it did not work out as planned, according to FT View.

Yesterday evening, during the UK's two-day AI safety summit, Elon Musk had a conversation with Rishi Sunak. Musk expressed that in the long run, artificial intelligence will replace all jobs. He stated that AI is the "most disruptive force in history" and that there will be a time when humans will not be required for jobs. Their discussion delved deeper into this topic.

Additional AI: Prominent AI enterprises have consented to permit governments, such as the United Kingdom, United States, and Singapore, to evaluate their most recent designs for national security and other hazards prior to their distribution to organizations and consumers.

In my view, the AI summit conducted in the UK is commendable. However, I believe that the results and outcomes will not have much effect compared to the executive order on regulation introduced by the president of the United States, as stated by John Thornhill.

Recently, the US House of Representatives agreed to give $14 billion of financial aid to Israel. However, the sum was less than what the US president had initially suggested in his proposal. The original proposal included aid for Ukraine, the Indo-Pacific area, humanitarian relief, US border protection, and measures to prevent tax evasion by the Internal Revenue Service. Here are the details regarding the voting process.

Further details about the ongoing conflict between Israel and Hamas: The military of Israel announced yesterday that it had encircled Gaza City as its land-based offensive transitioned into a fresh stage.

A number of American law firms are expressing concern about anti-Semitic behavior amongst students in top law schools. In an effort to combat this issue, 24 law firms have written to these institutions, urging them to take stronger action against anti-Semitic tendencies.

Israel's prime minister, Bibi, is losing the support of his own Likud party members who are traditionally in the center-right. This is due to their disappointment with his denial of blame for the Hamas attack that caused loss of life.

Did you manage to stay updated with the latest news this week? Test your knowledge with our quiz.

Although the global economy seems uncertain, the French luxury brand Hermès is experiencing a strong business, selling handbags for $10,000. Their competitors, Kering and LVMH, have cautioned that sales will likely decrease. However, at Hermès, they have an abundance of buyers and cannot keep up with the demand.

The competition is heating up for PC chips. Richard Waters believes that Intel will face more challenges soon with the release of numerous new products entering the market.

Oren Cass has observed that Republicans are currently experiencing a conflict between the “Old Right” and “New Right”, and are not accurately recalling their history of “fiscal discipline”.

The tourism industry in Spain's northern regions, which are typically not as popular, is experiencing a surge in visitors during the summer season. This could be an indication of how climate change might impact tourism in Europe.

"Today's Featured Graph"

The young members of the Conservative party are declining in the United Kingdom. According to a recent study, only one percent of people under the age of thirty plan to vote for the center-right party in the upcoming general election. It may seem like other countries are also experiencing this trend, but that is not the case. John Burn-Murdoch, the FT's chief data reporter, explains why in his insightful article.

Pause The News For A While

New research has discovered that rats possess the ability to mentally conjure up images of places and objects that are not currently in their physical presence. The study, conducted by specialists at the Howard Hughes Medical Institute in the United States, sheds light on the impressive cognitive abilities of animals and holds great promise in advancing the field of neuroprosthesis, which is currently experiencing significant growth.

More inputs originated from Tee Zhuo and Emily Goldberg.

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