Sam Bankman-Fried is attempting to raise $4 billion to save FTX after rival Binance withdrew its last-minute offer to acquire the failing cryptocurrency exchange.
According to independent sources from Bloomberg and the Financial Times, Bankman-Fried allegedly told investors on Wednesday night that FTX is in danger of bankruptcy if the business doesn’t obtain at least $4 billion to stay stable and is facing a funding gap of up to $8 billion. Bankman-Fried claimed that FTX is prepared to accept the funding in any form, including debt, equity, or a combination of the two.
When the bank run on the cryptocurrency exchange was caused by Binance CEO Chengpeng Zhao selling his $2 billion position in the FTX exchange’s native token, venture capital firm Sequoia Capital informed investors that it would be completely writing off its prior $214 million investment in the company.
In a message to investors in its fund, Sequoia stated that “a cash shortage has generated solvency risk for FTX in recent days,” according to the Financial Times.
Other notable platform sponsors, including as BlackRock, Canada’s Ontario Teachers’ Pension Plan, Singapore’s Temasek, SoftBank, and hedge fund Lightspeed Venture Partners, have not indicated whether they are prepared to step in and help preserve the failing cryptocurrency exchange.
If someone could send SBF a few billion, he would be “unbelievably grateful.”
Sam Bankman-Fried has been repeating the same three words over the past few days ever since the company started to decline: “I f****d up.”
In addition to telling investors on the call that he “f***ed up,” Bankman-Fried reportedly issued a note to all of his staff on Tuesday morning saying “I’m sorry, I f***ed up,” according to Reuters. He added that he would be “extremely, unbelievably grateful” if investors could assist.
Justin Sun, the creator of the Tron cryptocurrency network and the ambassador of Grenada to the World Trade Organization, tweeted late on Wednesday that he and his colleagues were “working together a solution with FTX to establish a road ahead,” which is encouraging for Bankman-Fried. However, Sun assured his Twitter followers that his team was “working around the clock to avoid further deterioration,” adding that “the ongoing liquidity crunch, despite short term in nature, is harmful to the industry development and investors alike.” Sun did not provide specifics on the type of financing deal they were arranging.
Meaning of an FTX Collapse
FTX is the second-largest cryptocurrency corporation, and Bankman-Fried was widely regarded as the industry’s “golden boy,” thus this story stands out even though it may appear to be the standard fraud for which the crypto market has a well-deserved reputation.
Only six months prior, Bankman-Fried welcomed Tony Blair and Bill Clinton at a meeting in the Bahamas, and Fortune featured a profile on the young businessman on the cover of its August/September issue.
However, as FTX’s future viability came into question, this joy faded. According to the Bloomberg Billionaire Index, Bankman-Fried, whose previous net worth was $26 billion, has had his personal net worth decrease 94% in one day to $991.5 million.
The price of cryptocurrencies has also plummeted due to this loss of faith. After Binance confirmed earlier speculations that it would pull out of the arrangement, Bitcoin fell 13% to $15,840, hitting a two-year low. Earlier in the week, the cost of Bitcoin was over $20,000.
A “cascade of margin calls,” according to JPMorgan, is already in motion, and the cryptocurrency markets will experience weeks of deleveraging, which may drive Bitcoin as low as $13,000.
It appears likely that a new cascade of margin calls, deleveraging, and crypto company [and] platform failures is beginning, similar to what we saw last May [and] June following the collapse of Terra, according to JPMorgan analysts. “Given the size and interlinkages of both FTX and Alameda Research with other entities of the crypto ecosystem…
Furthermore, owners of cryptocurrencies on the FTX trading platform may have their own money at risk. FTX customer cash could be subject to seizure by an administrator for liquidation to pay creditors from the insolvency estate, Sam Bankman-Fried said in a tweet that was later quietly removed.
But in the end, one person comes out on top. Following Justin Sun’s announcement that he was considering measures to salvage FTX, the value of his token TRX increased by approximately 4,000% on the FTX platform.
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Meta Is Fined $275 Million By The Irish Data Privacy Authorities
In a data breach that occurred in 2019, Meta was issued a fine of approximately $275 million by Ireland’s data privacy commission for its failure to prevent hackers from stealing the personal information of more than 500 million Facebook users.
The announcement made on Monday marked the fourth time in about a year that Facebook (FBparent )’s corporation had been punished by the Irish Data Protection Commission. The Irish Data Protection Commission is the major privacy regulator monitoring Meta’s operations in Europe. According to the commission’s statement, the decision to issue the fine was reached on Friday of last week.
Meta has been hit with fines totaling 912 million euros by the Data Protection Commission of Ireland (DPC) since the fall of 2021. The DPC is pursuing the social media giant and its other subsidiaries, Instagram and WhatsApp, for alleged violations of the General Data Protection Regulation, which is Europe’s signature data privacy law (GDPR).
In the early fall of this year, Meta was handed the second-largest GDPR fine in history, which was for the way in which Instagram handled the data of children. The fine was 405 million euros. Additional enforcement procedures, which took place in March 2022 and September 2021, respectively, resulted in the imposition of fines totaling 17 million and 225 million euros.
A representative for Meta issued a statement on Monday stating that the company was “seriously” analyzing the decision made by the DPC and that it had cooperated fully with the investigation being conducted by the agency. The investigation was kicked out in April of last year after it was reported by Business Insider that the personal information of more than half a billion Facebook users had been published on a hacker website. At the time, Facebook stated that hostile actors had used its contact importer tool in order to match known phone numbers to the accounts of Facebook users before extracting more information from their profiles. According to a statement released by Meta on Monday, “Protecting the privacy and security of people’s data is crucial to how our business works.” [Citation needed] “During the time in question, we implemented a number of changes to our systems, one of which was the removal of the capability to scrape our features in this manner by using phone numbers. The scraping of data without authorization is against both our policy and our terms of service, and we will continue to collaborate with our competitors to find a solution to this industry problem.
This judgment was made by the Irish Data Protection Commissioner in the midst of widespread criticism from privacy activists who claim that regulators have proceeded slowly and tentatively to enforce GDPR, which became law in 2018.
Privacy regulators in Luxembourg issued a punishment of 746 million euros to e-commerce giant Amazon (AMZN) in accordance with the General Data Protection Regulation (GDPR) last year. They did so on the grounds that the manner in which Amazon processes personal data is in violation of the law. Amazon (AMZN) is attempting to get the penalty overturned.
Musk Alleges Apple “Threatening To Withhold” Twitter From Its App Store
Elon Musk said that Apple has “threatened” to remove Twitter from its iOS app store, which might devastate the $44 billion firm he acquired.
Musk tweeted Monday that Apple (AAPL) and its CEO had threatened to remove Twitter from its App Store without explaining why.
Musk tweeted that Apple had basically discontinued Twitter advertising. “Do they detest free speech in America?” he asked, referring to his repeated calls for platform free speech. “What’s up, Tim Cook?” Musk tweeted again. He also blasted Apple’s scale, “restriction,” and 30% transaction fee for large app creators in its app store.
Musk’s tweetstorm emphasizes his tense relationship with Apple, which along with Google controls mobile app distribution. Before taking over Twitter, the Tesla CEO stated he explored selling the firm to Apple, but Cook refused to meet with him. Twitter, which has lost advertisers since Musk’s takeover and struggled to grow its subscription business, would suffer if it were removed from Apple’s or Google’s app stores.
Musk’s tweets were unanswered by Apple. The business has already indicated it’s willing to delete apps from its app store over worries about their ability to filter dangerous content or if they attempt to evade the cut Apple takes from in-app sales and subscriptions. After the US Capitol attack, Apple withdrew Parler, a conservative app, from its app store over concerns about its capacity to recognize and filter hate speech and incitement. After improving its content moderation, Apple reinstated Parler three months later.
Apple’s app store review criteria require apps to prevent “material that is unpleasant, insensitive, distressing, intended to disgust, in extraordinarily poor taste, or just plain creepy” such hate speech, pornography, and terrorism. The guidelines declare that the App Store is not the place for apps that shock and offend.
After extensive layoffs and large employee departures, civil society groups, researchers, and industry watchers have voiced worries about Twitter’s ability to monitor dangerous content and keep the network safe. Musk also wants to promote “free expression” on Twitter by restoring banned or suspended accounts. Musk has tweeted a conspiracy theory and other controversial messages since taking over Twitter.
Since becoming CEO, Musk, a prolific and aggressive tweeter, has continued. He claims engagement has compensated for revenue losses. The objective appears to be persistently targeting enemies of his or “free speech.” Cook was questioned in an interview earlier this month if Twitter might alter to make Apple remove it from the app store. “They say they’ll moderate and so… “I trust them,” Cook said. Because no one wants hate speech on their platform. I expect them to continue.”
Last week, Twitter’s former head of trust and safety, Yoel Roth, who departed the business earlier this month, wrote in the New York Times that app store operators had started calling Twitter after Musk’s takeover. Roth called violating Google and Apple’s app store guidelines “catastrophic.”
Last Sunday, Apple app store boss Phil Schiller canceled his Twitter account.
Apple ran Black Friday adverts on Twitter on Thursday, though their relationship is unclear.
As the economy has weakened, many corporations have cut digital ad expenditure, and Twitter has likely always been a modest part of Apple’s budget. If Musk succeeds in converting Twitter’s core business to subscription revenue and needs to give Apple a 30% cut, Apple’s impact on Twitter may be considerably greater.
Musk tweeted, “Apple charges a concealed 30% tax on anything you buy through their App Store?” In another tweet, he showed a motorway exit with two lanes: “pay 30%” and “go to war.” Elon’s ancient automobile slid toward him.
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Returning Disney CEO Bob Iger Outlines His Objectives
After shocking the media industry with his return as CEO of Disney the previous week, Bob Iger visited the company’s headquarters on Monday to speak with employees for the very first time since making the announcement.
Iger addressed a variety of concerns that have been raised about the corporation, including the current hiring moratorium at Disney and the areas of concentration for the Disney+ streaming service that he has in mind. In addition to this, he emphasized that the most important thing for him to focus on as he regains control is creativity.
During a town hall meeting held at the company’s headquarters in Burbank, California, Iger informed staff that Disney’s hiring freeze would continue to be in effect – at least for the time being. His predecessor, Bob Chapek, made the announcement of the hiring freeze at the beginning of this month. Iger took over as CEO of Disney after Chapek, whose time in that role was brief but fraught with conflict. Iger has stated that maintaining the freeze is the “sensible thing to do” in light of the issues that are now facing the corporation. When addressing Disney’s overall “cost structure,” he also said that the length of time the employment freeze will be in effect will be a consideration for him.
The announcement of Iger’s return comes at a time when Disney is facing a great deal of hardship and criticism across its entire media empire. Disney is currently facing challenges in both the film and television industries. This includes a share price that has remained flat during the entire year as well as a streaming business that is expanding but is still losing money. Iger stated that when he departed the firm a year ago, Disney’s performance in streaming was being judged by a variety of criteria; nonetheless, growth was the primary element being considered. Since then, the emphasis has switched to “the bottom line” and “how much we are losing and when we will be profitable,” according to Iger’s statement.
He stated that the corporation should begin “chasing profitability” rather than “chasing subs with aggressive marketing and aggressive spend on content.” He stated that in order for Disney to accomplish this goal, the company must do a “very, very serious look” at the cost structure of all of its companies. However, Iger emphasized that “creativity” should be the primary focus of the corporation, as the returning CEO already stated that this endeavor will be his top priority.
Iger was asked about Disney’s creative muscle, and he responded by saying, “A number of you who worked with me know I’m obsessed with that.” “However, there is a logic behind my fixation on that. It is the engine that keeps the business going.
Iger stated that the quantity of content that Disney develops is not as important as the “greatness of the things that we do make.”
Iger wasted no time in making his stamp on the corporation and did so immediately. Soon after it was announced that he would be taking over as CEO, he reorganized Disney’s content distribution structure and announced that Kareem Daniel, chairman of the company’s Media and Entertainment Distribution unit, would be leaving Disney. Kareem Daniel had been the person responsible for overseeing the distribution of Disney’s content.
Iger tweeted a picture of Disney’s offices early on Monday morning, which was his first day back on the Walt Disney Studio lot. He captioned the image with the phrase “full with gratitude and delight to be back.”
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