The Week in Business: FTX’s Collapse – The New York Times

by | Nov 20, 2022 | Business

Credit…Giacomo BagnaraWhat’s Up? (Nov. 13-19)Crypto ChaosIn 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 HolmesElizabeth 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, ContinuedGiven 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 …

Article Attribution | Read More at Article Source

Share This