The Chicago Journal

Nishad Singh enters guilty plea with apologies

Jason Robinson Jason Robinson on March 6, 2023

Nishad Singh – Despite the fact that the cryptocurrency exchange site FTX has been down for several months, the crackdown on its leadership continues.

Former FTX executive Nishad Singh just pled guilty.

He is now supporting the FBI in its probe into the alleged billion-dollar swindle at the formerly unmovable exchange.

The news

Nishad Singh, the platform’s former director of engineering, pled guilty to six charges of conspiracy, including:

  • Conspiracy to commit wire fraud
  • Conspiracy to commit money laundering
  • Conspiracy to violate federal campaign finances laws

Singh is Sam Bankman-third Fried’s top executive and close confidante to submit a guilty plea.

He joins Gary Wang, the exchange’s co-founder, and Caroline Ellison, the former CEO of the exchange’s sister hedge fund, Alameda Research.

Wang and Ellison made guilty pleas in 2022 and are presently working together against SBF.

“Today’s guilty plea underscores once again that the crimes at FTX were vast in scope and consequence,” said Damian Williams, the US attorney for the Southern District of New York.

“They rocked our financial markets with a multibillion-dollar fraud. And they corrupted our politics with tens of millions of dollars in illegal straw campaign contributions.”

“The crimes demand swift and certain justice, and that is exactly what we are seeking in the Southern District of New York.”

Penalties

Once the Securities and Exchange Commission and the Commodities Futures Trading Commission filed civil charges against him, Nishad Singh agreed to settle.

As part of the SEC deal, Singh agreed to be restricted from serving as an officer or director.

In order for the deal to be finalized, a judge must sign off on it and decide how much penalties and disgorgement Nishad Singh must pay in addition to the ban time.

Despite this, Singh did not contest his liability, according to the CFTC.

Among the remedies sought by the government are restitution, disgorgement, and permanent trade restrictions.

Apologies

Nishad Singh’s attorneys, Andrew Goldstein and Russell Capon, delivered an apologetic statement on Tuesday.

“Nishad is deeply sorry for his role in this and has accepted responsibility for his actions.”

“He wants to do everything he can to make things right for victims, including by assisting the government to the best of his ability in this case.”

Read also: Meta will charge users for its subscription service

The head of the company

Although Nishad Singh, Gary Wang, and Caroline Ellison face heavy punishment, the leader of their shattered empire awaits him.

According to prosecutors and the worldwide community, Sam Bankman-Fried is facing 12 criminal accusations for his role in one of the greatest financial robberies in history.

SBF pleaded not guilty to several of the claims in the face of overwhelming proof.

He will appear in court at some time in the future, with a date for some of the claims still to be decided.

Sam Bankman-Fried has also been released on a $250,000 bail.

The allegations

Authorities allege that, among others, Sam Bankman-Fried, Nishad Singh, Gary Wang, and Caroline Ellison stole customer accounts at FTX.

They reportedly utilized the funds for the following purposes:

  • Strengthen Alameda Research’s business operations
  • Self Enrichment
  • Create venture investments
  • Buy the influence of US politicians

According to authorities, SBF raised around $1.8 billion from investors.

Political influence

This Monday, an indictment was unsealed against him, indicating that prosecutors alleged more than 300 political donations were made.

The contributions were made in an apparent attempt to influence bitcoin legislation and regulation.

Furthermore, they were carried out under the identities of two FTX employees identified in the charges as CC-1 and CC-2.

According to those acquainted with the situation and federal and state election records, CC-1 is Nishad Singh and CC-2 is Ryan Salame.

Prosecutors believe Singh was chosen to represent left-wing donations.

According to the indictment, SBF planned to give at least $1 million to a super PAC supporting a candidate for a US House seat who seemed to be pro-LGBTQIIA+ issues.

According to reports, an SBF political strategist persuaded Nishad Singh to bear the blame for the contribution, telling him:

“In general, you being the center left face of our spending will mean you giving to a lot of woke *** for transactional purposes.”

Prosecutors stated that Nishad Singh expressed concern, but admitted that no one at the business trusted someone who was “bi/gay” and capable of making the payment.

Also, before the 2022 midterm elections, an FTX employee was accused with transferring $107,000 from SBF’s account to the New York Democratic Committee.

According to the indictment, they were told to change it to imply it came from CC-1.

According to records, Nishad Singh gave $107,000 to the committee on October 28.

…

Sherrod Brown looking to have cryptocurrency banned in the US

Claire Peterson Claire Peterson on March 6, 2023

…

Sherrod Brown: US senator Sherrod Brown recently recommended that US federal authorities take a ban on cryptocurrencies into consideration.

He specifically mentioned the Commodity Futures Trading Commission (CFTC) and the Securities Exchange Commission (SEC).

The news

While appearing on NBC’s “Meet the Press,” Brown proposed the ban but admitted that it would be “extremely tricky” to put it into effect.

According to the US senator, the cryptocurrency business may expand globally.

He mentioned several American regulators and said:

“We want them to do what they need to do at the same time – maybe banning it.”

“Although banning it is very difficult because it will go offshore and who knows how that will work.”

To bolster his arguments, Sherrod Brown cited a variety of instances, such as “the threat to national security from Korean cyber criminals to drug trafficking and human trafficking and financing of terrorism and all things that can come out of crypto.” 

The demise of FTX provides yet another instructive illustration.

The FTX collapse

The cryptocurrency exchange FTX filed for bankruptcy at the start of November after failing.

Before assessing and selling its assets, the corporation indicated that it will seek Chapter 11 bankruptcy protection.

Alameda Research, a corporation with a related business, also filed for bankruptcy.

A few companies, however, are left from the list, including:

  • Ledger X LLC
  • FTX Digital Markets Ltd.
  • FTX Australia Pty Ltd.
  • FTX Express Pay Ltd.

Sam Bankman-Fried, the company’s founder and CEO, announced his departure in a press release.

Taking over, John J. Ray III said:

“The FTX Group has valuable assets that can only be effectively administered in an organized, joint process.”

Read also: Solar power found to have two benefits for users

What happened

Sam Bankman-Fried was formerly seen as a celebrity in crypto, but he quickly lost that reputation.

As part of its equity exit from the company, Binance started selling its ownership of FTT, the native exchange token for FTX, last year.

Investors began withdrawing funds from the FTX as the token’s value fell, which prompted the platform to halt withdrawals and proclaim a panic.

Brown’s sentiments

Sherrod Brown requested this month that various government agencies work together to find a solution to the problem of prohibiting cryptocurrencies.

“Single regulatory agencies currently generally do not have a comprehensive view of crypto asset entities’ activities,” he declared in a statement.

Brown, an Ohioan Democrat who has served in the US Congress since 2007, is not the first high-ranking official to advocate for additional crypto rules.

Last month, Senator Elizabeth Warren proposed a new plan to regulate cryptocurrency.

The Digital Asset Anti-Money Laundering Act is the name of the proposed legislation.

It makes an effort to demand that providers of digital assets deliver audited financial data.

Additionally, the law proposes to establish capital criteria similar to those employed by banks and other traditional financial institutions.

In addition, the plan would give the SEC more authority over the asset class.

Read also: Maxine Waters firm on having Sam Bankman-Fried attend hearing

Offshore crypto movement

The crypto business is already moving operations outside the US due to the US government’s uncertain regulatory future, despite what the US Senator claimed.

Coinbase CEO Brian Armstrong addressed the issue in a tweet from November.

“FTX.com was an offshore exchange not regulated by the SEC.”

“The problem is that the SEC failed to create regulatory clarity here in the US,” he continued.

“So many American investors (and 95% of trading activity) went offshore.”

Armstrong went on to describe the idea of penalties against US companies as absurd.

Brian Armstrong reiterated his appeal for US lawmakers to take the initiative and drive the movement toward crypto legislation following the collapse of FTX.

His website’s strategies were contrasted with those of the “offshore exchange” with headquarters in the Bahamas, he claimed, adding that Coinbase has been a staunch advocate of crypto regulation.

References:

Banking committee chair: US regulators should ‘maybe’ ban crypto

FTX files Chapter 11 bankruptcy, SBF steps down as CEO

FTX crisis an ‘opportunity’ for US to clarify crypto regulations: Coinbase CEO

Caroline Ellison and SBF responsible for FTX collapse

Edward Anderson Edward Anderson on January 2, 2023

…

Caroline Ellison: The former CEO of FTX’s sister company, Alameda, testified before a judge that she and Sam Bankman-Fried misrepresented lenders about their financial information.

Ellison agreed with the former FTX CEO that Alameda’s lenders were provided “materially misleading financial statements.”

The news

After Caroline Ellison’s trial testimony was given on December 19, SBF was not released on a $250 million bond until three days later, at which point the transcript of her testimony was released publicly.

Judge Ronnie Abrams of the US District Court listened as the former Alameda CEO said, “I am truly sorry for what I did – I knew that it was wrong.”

“Did you also know that it was illegal?” the court asked her to clarify.

“Yes,” Ellison answered.

Federal charges

Last week, Caroline Ellison and Gary Wang, the other co-founder of FTX, pleaded guilty to federal charges for their involvement in the frauds that caused the company’s collapse.

The two had been charged, according to attorneys for the Southern District of New York on Wednesday.

The Securities and Exchange Commission alleges that they were charged with participating in a scheme to defraud equity investors.

The Commodities Futures Trading Commission (CFTC) stated that a revision had been made to its fraud complaint.

Ellison and Wang, according to US Attorney Damian Williams, accepted guilty pleas.

Williams also thanked the assistance of the Bahamas, the US Embassy there, and the Justice Department’s Office of International Affairs.

The Southern District of New York is cooperating with Gary Wang and Caroline Ellison.

They didn’t disclose their plea deals until Sam Bankman-Fried was on his way from the Bahamas to the US.

Read also: Sam Bankman-Fried to receive bail for $250 million

The financial statements

The misleading financial statements, according to Caroline Ellison, were derived from “quarterly balance sheets that concealed the extent of Alameda’s borrowing and the billions of dollars in loans that Alameda had made.”

“I agreed with Mr. Bankman-Fried and others not to publicly disclose the true nature of the relationship between Alameda and FTX, including Alameda’s credit arrangement,” said Ellison.

The following people reported about the transcript after reading it:

  • New York Times
  • Reuters
  • Bloomberg

Matthew Russell Lee of Inner City Press tweeted a portion of the transcript.

Early reports

The employees of FTX and Alameda were either aware of or oblivious of what was happening between the two companies, according to reports that surfaced last week.

Before Ellison and Wang submitted guilty to their charges, the ambiguity was the subject of much speculation.

However, Caroline Ellison’s remarks confirmed rumors that FTX had treated Alameda uniquely.

Alameda was given permission to take money out of its sister company.

Ellison said:

“I understood that FTX executives had implemented special settings on Alameda’s FTX.com account that permitted Alameda to maintain negative balances in various fiat currencies and crypto currencies.”

“In practical terms, this arrangement permitted Alameda access to an unlimited line of credit without being required to post collateral, without having to pay interest on negative balances and without being subject to margin calls or FTX.com’s liquidation protocols.”

The company’s huge debt and what it entailed were both recognized to the former Alameda CEO and others, she said.

“I understood that if Alameda’s FTX accounts had significantly negative balances in a particular currency,” she continued.

“It meant that Alameda was borrowing funds that FTX’s customers deposited onto the exchange.”

Read also: TikTok receives ban on government devices

SBF

Sam Bankman-Fried and other executives, according to Caroline Ellison, allegedly took loans from Alameda while participating in a number of “large illiquid venture investments.”

She said that she and others had agreed to borrow from FTX in the billions of dollars in order to pay back the loans.

“I understood that FTX would need to use customer funds to finance its loans to Alameda,” Ellison shared.

“Most FTX customers did not expect that FTX would lend out their digital asset holdings and fiat currency deposits to Alameda in this fashion.”

Caroline Ellison also spoke to the FTX collapse victims, saying:

“I want to apologize for my actions to the affected customers of FTX, lenders to Alameda, and investors in FTX.”

“Since FTX and Alameda collapsed in November 2022, I have worked hard to assist with the recovery of assets for the benefit of customers and to cooperate with the government’s investigation.”

“I am here today to accept my responsibility for my actions by pleading guilty.”

References:

Caroline Ellison ‘knew that it was wrong,’ implicates Sam Bankman-Fried

Caroline Ellison, Gary Wang plead guilty, cooperating in FTX investigation

SEC says Ellison, Wang ‘knew or were reckless in not knowing’ about FTX fraud

Sam Bankman-Fried to receive bail for $250 million

Leah Cooper Leah Cooper on December 26, 2022

…

Sam Bankman-Fried: A federal judge in New York issued a ruling on Thursday that allows the FTX developer to be released on a $250 million bond.

He is in the process of being prosecuted for fraud and other crimes.

The news

Sam Bankman-Fried, his parents, attorney, and court security left the Manhattan US District Court at around 2:00 p.m.

The prosecutors and his attorneys accepted the bail conditions for Bankman-personal Fried’s recognizance.

On January 3 in New York City, Judge Ronnie Abrams will preside over the 30-year-old’s next hearing.

He will enter a plea and answer the allegations there.

Bond

A recognizance bond is a written promise from the defendant to appear in court in response to a summons.

After being released, Sam Bankman-Fried won’t be required to meet all of the bail’s collateral requirements.

The bond was signed by his parents and two other people with substantial assets and was secured by the equity in his family’s home.

The prosecution described the $250 million package, which also includes an electronic monitoring bracelet, as the biggest pretrial bond ever.

He must agree to obtain mental health therapy and abstain from going to the Southern, Eastern, and Northern Districts of California and New York.

Read also: FTX and Alameda leaders plead guilty for company collapse

In the court

Judge Gabriel Gorenstein said that after being permitted to return to his parents’ California home, Bankman-Fried would require continued supervision.

The parents of SBF, who are both Stanford law professors, were in the courtroom.

The creator of FTX was surrounded by two US marshals dressed in blue suits and brown shoes.

He swapped his ankle shackles for an ankle monitor while in the courtroom.

Sam Bankman-Fried remained silent until the judge inquired whether he understood the repercussions of breaking the bail conditions.

“Yes, I do,” said SBF.

Furthermore, Bankman-Fried is prohibited from opening new credit accounts with a total balance of more than $1,000.

Federal regulators describe him at his crypto-empire as a “brazen” fraud as they wait for the trial to start.

SBF was at the core of “a fraud of epic proportions” during the court proceedings, according to Assistant US Attorney Nicolas Roo.

SBF, according to Roos, had significantly decreased his financial holdings, had freely returned to the US and had never attempted to run.

Sam Bankman-Fried, a former $32 billion cryptocurrency tycoon, purportedly stated that he only had $100,000 in his bank account.

The outcome was a swift fall from grace for the man.

Accusations

Sam Bankman-Fried is accused of the following:

  • Perpetrating a multibillion-dollar fraud on his investors
  • Using customer funds to purchase properties
  • Funding political donations
  • Backstop trades at his hedge fund Alameda Research

On Monday, the Commodity Futures Trading Commission brought fresh allegations against SBF, FTX, and Alameda Research.

They claimed that FTX mixed up customer funds and that Bankman-Fried violated the Commodities Exchange Act.

According to allegations, Alameda Research had access to more than $8 billion in client funds.

Since the company’s founding in 2019, FTX client funds have been accessible to and used by Alameda for its operations and activities, including:

  • Trading
  • Funding
  • Investment
  • Borrowing/lending

The SEC’s accusations that Sam Bankman-Fried operated his empire as a scam from the start were echoed by the CFTC.

FTX sought bankruptcy protection in Delaware on November 11.

John Ray III, who succeeded Sam Bankman-Fried as CEO of FTX, said he had never seen such a loss of corporate control.

SBF’s lieutenants

On Wednesday, Caroline Ellison, a former co-CEO of Alameda Research, and Gary Wang, a co-founder of FTX, both pleaded guilty to federal charges.

Gary Wang acknowledged the following allegations:

  • Conspiracy to commit wire fraud
  • Wire fraud
  • Conspiracy to commit commodities fraud
  • Conspiracy to commit securities fraud

Caroline Ellison had done the following:

  • Two counts of wire fraud
  • Two counts of conspiracy to commit wire fraud
  • Conspiracy to commit commodities fraud
  • Conspiracy to commit securities fraud
  • Conspiracy to commit money laundering

The public was informed of their plea agreements on Wednesday.

Read also: Sherrod Brown looking to have cryptocurrency banned in the US

SBF

The US Attorney accused Sam Bankman-Fried of eight charges, including securities fraud and money laundering.

He was transported by air from the Bahamas to New York on Wednesday night.

SBF has a far higher bond than other federal white-collar defendants.

  • Bernie Madoff obtained a $10 million bail in anticipation of his imminent trial for running a Ponzi scheme.
  • Former Enron CEO Jeff Skilling posted a $5 million bond.
  • Elizabeth Holmes, the Theranos founder, posted a $500,000 bond.

Reference:

FTX founder Sam Bankman-Fried to be released on $250 million bail, will live with his parents

CFTC piles on new charges against Bankman-Fried, FTX and Alameda

FTX’s Gary Wang, Alameda’s Coraline Ellison plead guilty to federal charges, cooperating with prosecutors

FTX and Alameda leaders plead guilty for company collapse

Jason Robinson Jason Robinson on December 26, 2022

…

FTX: On Wednesday, Gary Wang, a co-founder of FTX, and Caroline Ellison, a former co-CEO of Alameda Research, pleaded guilty to federal charges.

The charges

US Attorney Damian Williams states that the two FTX associates pleaded guilty in the Southern District of New York.

The following offenses were those to which Gary Wang pleaded guilty:

  • Conspiracy to commit wire fraud
  • Wire fraud
  • Conspiracy to commit commodities fraud
  • Conspiracy to commit securities fraud

However, Caroline Ellison was also charged with the following offenses:

  • Two counts of wire fraud
  • Two counts of conspiracy to commit wire fraud
  • Conspiracy to commit commodities fraud
  • Conspiracy to commit securities fraud
  • Conspiracy to commit money laundering

The night before Sam Bankman-Fried, the former CEO of FTX, was supposed to fly from the Bahamas to New York, their charges were made public.

The same federal prosecutors who accepted the plea agreements for Ellison and Wang are prosecuting him for eight felony charges.

Just in time for SBF’s scheduled departure for the US following a heated court session in the Bahamas, their plea agreements were finalized on Monday.

“As I said last week, this investigation is very much ongoing,” said Williams in a prerecorded message.

“I also said that last week’s announcement would not be our last. And let me be clear, once again, neither is today’s.”

Read also: Sherrod Brown looking to have cryptocurrency banned in the US

SBF

After being apprehended in the Bahamas the week before, Sam Bankman-Fried was charged in the Southern District of New York.

His willingness to be extradited to the US has been the subject of a court dispute over the last few days.

He was detained in the Bahamas after a protracted court session on Monday in which he failed to prevent his extradition to the US.

He reportedly instructed his Bahamian attorney to begin the extradition process later that day.

Sam Bankman-Fried will appear in court once again this week.

According to earlier reports, he initially agreed to extradition, but SBF on Monday voiced a different opinion.

He insisted on seeing a copy of his federal indictment before agreeing to return to the United States.

Bankman-Fried, however, decided to go to jail rather than surrender to US authorities.

The SEC

The Securities and Exchange Commission and the Commodity Futures Trading Commission are pursuing legal action against Gary Wang and Caroline Ellison.

The SEC alleges that Wang and Samuel Bankman-Fried were behind a “multiyear conspiracy to mislead equity investors,” the emphasis of which was the cryptocurrency trading platform FTX.

The CFTC’s expanded complaint makes the following claims:

“Ellison with fraud and material misrepresentations in connection with the sale of digital asset commodities in interstate commerce.”

Wang is charged with fraud “in connection with the selling of digital asset commodities in interstate commerce,” according to the indictment.

According to the CFTC statement, Wang and Ellison are alleged to have agreed to the accusations made against them.

Caroline Ellison was singled out for wilfully manipulating FTT (FTX’s self-issued token) to enhance Alameda Research’s loanable collateral.

The SEC claims that Ellison and Wang are cooperating in the investigation.

Read also: Twitter Blue is $3 more for iPhone users

FTX and Alameda

Alameda Research was linked to numerous loans from well-known cryptocurrency companies that filed for bankruptcy, most notably Voyager Digital and BlockFi Lending.

Damian Williams avoided going into specifics on the charges levied against Wang and Ellison.

According to the SEC, they reportedly assisted Sam Bankman-Fried in defrauding FTX clients while doing their duties at Alameda and FTX.

Alameda is charged with exploiting the FTX platform as a backdoor Wang incorporated into the software to access customer funds.

Sam Bankman-Fried presided over Alameda until Caroline Ellison and Sam Trabucco assumed charge in 2021 (Trabucco departed the company in August 2022).

Ellison, 28, and Wang, 29, were the second and third suspects in the FTX collapse, respectively.

Sam Bankman-Fried, 30, was charged with a federal offense this month.

“Bankman-Fried and Wang thus gave Alameda and Ellison carte blanche to use FTX customer assets for Alameda’s trading operations and for whatever other purposes Bankman-Fried and Ellison saw fit,” said the SEC.

They argued that there was no misconduct associated with Trabucco.

Then Wang’s attorney said the following:

“Gary has accepted responsibility for his actions and takes seriously his obligations as a cooperating witness.”

References:

FTX’s Gary Wang, Alameda’s Caroline Ellison plead guilty to federal charges, cooperating with prosecutors

FTX founder Bankman-Fried sent back to Bahamas jail in day of courtroom chaos

Sam Bankman-Fried ‘not ready’ for hearing

Claire Peterson Claire Peterson on December 5, 2022

…

Sam Bankman-Fried recently responded on Twitter to US Representative Maxine Waters’ invitation to a hearing on Friday.

The disgraced FTX creator said he wasn’t sure if he would be ready to attend a scheduled hearing in Washington, DC, on December 13.

The news

Sam Bankman-Fried was called to testify before the US House of Representatives Financial Services Committee.

Maxine Waters, a ranking member, tweeted to SBF, saying, “We would welcome your participation in our hearing.”

“We appreciate that you’ve been candid in your discussions about what happened at #FTX,” she wrote.

“Your willingness to talk to the public will help the company’s customers, investors, and others.”

Read also: Sam Bankman-Fried, ‘Look, I screwed up’

Response

On Sunday, Sam Bankman-Fried responded on Twitter, writing:

“Once I have finished learning and reviewing what happened, I would feel like it was my duty to appear before the committee and explain.”

“I’m not sure that will happen by the 13th. But when it does, I will testify.”

Reception to the response

Meanwhile, Crypto Twitter paid close attention to the FTX creator’s nonchalant attitude toward the invitation.

Paul Grewal, Chief Legal Officer of Coinbase, did not appreciate SBF’s attitude.

“Our elected representatives exercise great restraint in communicating their expectations,” he wrote.

“And still this fraudster insults their authority. What a disgrace.”

However, others have criticized Maxine Waters’ tone.

Blockchain-based video streaming platform LBRY recently lost a battle with the United States Securities and Exchange Commission over alleged sales of unregistered securities under its LBC token.

Others took the opportunity to denounce Sam Bankman-Fried for fraud.

Read also: Sam Bankman-Fried Faces Downfall with FTX Collapse

After the collapse

Following FTX’s bankruptcy filing in November, Sam Bankman-Fried issued multiple apologies.

SBF has appeared in high-profile interviews, including with George Stephanopoulos of Good Morning America, CNBC, and Andrew Ross Sorkin of The New York Times.

During the interview with Sorkin, Bankman-Fried revealed that he spoke against his attorney’s advice.

“I didn’t knowingly commingle funds,” said SBF, referring to the relationship between FTX and his trading firm Alameda Research.

“It was, in effect, tied together substantially more than I would have ever wanted it to be.”

Reference:

SBF publicly punts on the US House Hearing Invitation

Penguin Random House merge with Paramount dropped

Edward Anderson Edward Anderson on November 24, 2022

…

 

Penguin Random House is one of the oldest and best-known book publishers in the United States.

It initially planned to merge with Simon & Schuster, but Paramount recently canceled the deal.

Paramount also decided not to appeal the recent federal court decision blocking the publishers’ merger.

The news

Penguin Random House is a subsidiary of German media giant Bertelsmann.

According to a Paramount SEC filing, Penguin is required to pay the parent company of Simon & Schuster a $200 million penalty.

The $2.17 billion proposal was announced in November 2020.

Last month, US District Court Judge Florence Pan ruled that merging the book publishers would unlawfully restrict competition.

In 2021, the Justice Department filed a lawsuit to block the merger, one of the Biden administration’s first significant antitrust actions.

Read also: Alex Jones remains unwelcome on Twitter

Simon & Schuster

The parent company of Simon & Schuster says that it is still looking for buyers in a statement.

“Simon & Schuster is a highly valuable business with a recent record of strong performance,” they wrote.

“However, it is not video-based and therefore does not fit strategically within Paramount’s broader portfolio.”

Meanwhile, Simon & Schuster President and CEO Jonathan Karp wrote an email saying the news was still fresh.

“And at this point, I have no specific information to impart about what will happen in the coming months,” said Karp.

Read also: Google agrees to pay $392 million to 40 states

The lawsuit

According to the lawsuit, the settlement would have given the merged company more control over how much its writers were compensated.

Penguin Random House and Simon & Schuster are currently among the prominent book publishers in the United States and members of the “Big Five.”

Additionally, the lawsuit argues that fewer bidders would be available for the highly anticipated books.

The lower the bidders, the greater the potential blow for authors seeking to have their work published.

Reference:

Penguin Random House’s $2.2 billion deal for Simon & Schuster is over

Meta set for change with workforce layoff

Edward Anderson Edward Anderson on November 14, 2022

Meta, Facebook’s parent company, plans to begin its first major layoffs to cut its workforce amid a struggling economy.

According to the Wall Street Journal, the company’s move comes as it grapples with declining business and growing fears of a recession.

The news

The significant layoff is expected to affect thousands of employees.

According to the Journal, the layoffs could begin this week, citing anonymous people familiar with the case.

A September SEC filing also shares that Meta has over 87,000 employees.

Read also: Meta to make changes after stocks fall 17%

Earnings result

Last month, Meta held a conference call discussing the third quarter results.

CEO Mark Zuckerberg said he expects Meta to end 2023 with the same size or smaller organization than today.

Revenue

While it’s not certain yet, the potential cuts could be linked to tighter budgets for advertisers.

Additionally, Apple’s iOS privacy changes have affected the company’s core businesses.

Last month, Meta reported a sales decline in the second quarter and reported that profits had halved from 2021.

The drop in profits is caused by the billions the company spent to build the metaverse.

The metaverse is what many suggest is the future of the Internet; however, it is probably years away from operating.

The social media giant had a market cap of over $ 1 trillion in 2021, but it has declined.

Meta is currently worth over $250 billion.

When news of the company’s job cuts surfaced, the company’s shares opened more than 5% higher on Monday morning.

Read also: UK gives breakup order, Meta to comply and sell Giphy

Other companies

Meta isn’t the only company in the tech industry rethinking its workforce.

Many companies in what was once considered an untouchable industry have recently announced staff freezes or job cuts.

The decision comes as a surprise as many grew rapidly during the pandemic.

Last week, Lyft announced that it would lay off 13% of its employees.

Payments processor Stripe also said it would cut 14% of its workforce.

Additionally, e-commerce giant Amazon has announced that it will pause corporate hiring.

Facebook’s rival Twitter made heavy cuts Friday after Elon Musk bought the social media company.

Twitter’s cuts have impacted its AI, marketing and communications, research and public policy team, just to name a few of the departments involved.

According to Bloomberg, Twitter asked dozens of laid-off employees to return.

Reference:

Wall Street Journal: Meta is planning significant layoffs

SEC charges prominent crypto influencer Ian Balina for unregistered ICO four years ago

Jason Robinson Jason Robinson on October 3, 2022

The US Securities and Exchange Commission (SEC) says crypto influencer Ian Balina broke the rules during Sparkester’s $ 30,000 ICO more than four years ago.

As a result, the SEC charges the crypto influencer.

The charge

The SEC says the crypto personality has not filed a registration statement with the Commission for listing and selling Sparkster’s SPRK tokens.

There was reportedly no exemption from registration.

According to the SEC, Balina did not disclose the commission he received for promoting the initial offerings of SPRK or ICOICO coins on social media.

Sparkster initially offered investors a portion of its “No Code” software development platform by purchasing SPRK tokens.

Tokens are designed to allow users to develop software with minimal technical programming skills.

As a result, the SEC is calling for “injunctive relief, disgorgement, civil penalties, and other appropriate and necessary equitable relief.”

If the allegations are confirmed, Balina will no longer be able to promote the titles.

The Ethereum contribution

According to the filing, contributions were made to Ethereum to participate in the ICO in the United States.

The file goes:

“[Users’] ETH contributions were validated by a network of nodes on the Ethereum blockchain, which are clustered more densely in the United States than in any other country.”

“As a result, those transactions took place in the United States.”

Balina’s reaction

The crypto influencer responded to the news by taking to Twitter, where he announced he was excited to “go public with this fight.”

“This frivolous SEC charge sets a bad precedent for the entire crypto industry,” he tweeted.

“If investing in a private sale with a discount is a crime, the entire crypto BV space is in trouble.”

“Turned down settlement so they have to prove themselves.”

ICO promotion

Balina awarded the Sparkster token a 90% Hall of Fame rating in its ICO investment chart.

It also promoted it to users of a private Telegram group of about 50 people, according to the SEC filing.

Since then, the Cayman Islands-based company has been dissolved.

The SEC approved ICO SPRK took place between April and July 2018.

It raised about $ 30 million from nearly 4,000 investors in the United States and abroad.

Balina is said to have signed an agreement to invest $ 5 million from Sparkster’s offer before promoting the token on YouTube, Telegram, and other social media platforms.

Although the SEC said he accepted a 30% bonus on the tokens purchased in the offer, Balina has never revealed his consideration for the promotion.

The SEC

Yesterday the SEC announced that Sparkster and CEO Sajjad Daya agreed to pay $ 35 million to interested investors.

Carolyn M. Welshhans, deputy director of the application of the century, said that the agreement has made it possible to give an important amount to investors.

It also calls for additional measures to protect these investors, including disabling tokens to prevent future sales.

She also said the Balina lawsuit is protecting investors “by seeking to hold accountable an alleged crypto asset promoter for failures to follow the federal securities laws.”

Reference:

SEC charges crypto influencer Ian Balina over unregistered ICO in 2018