Business

Former FTX CEO Sam Bankman-Fried Blames Lawyers, Judge Calls Him Dubious

Former FTX CEO Sam Bankman-Fried testifying to a judge, has tried to blame the entire collapse of his crypto exchange and missing money on his lawyers, a claim the judge has called dubious. Bankman-Fried was summoned by Judge Lewis Kaplan to evaluate which portions of his testimony might be heard by the jury.

The 31-year-old is accused of defrauding investors and lenders as well as stealing money from users of his now-defunct cryptocurrency exchange, FTX. He claimed that he was acting in good faith based on legal guidance.

The court dismissed the jury so that he could determine which parts of Mr Bankman-Fried’s testimony, if any, would be accepted as evidence.

The action allowed Mr Bankman-Fried and his counsel to practise speaking in front of the jury.

Personal loans from Alameda

Mr Bankman-Fried defended decisions that prosecutors had questioned, such as setting some group discussions to erase automatically. He stated that this was in accordance with the record-keeping rules established by his legal staff.

He stated that he and his lawyers had addressed numerous such arrangements, including personal loans he received from Alameda and its role as a “payments processor” for FTX.

“Did you take comfort from the fact that lawyers had structured the loans?” Mark Cohen, Mr Bankman Fried’s attorney, inquired. “Yeah, of course,” Mr Bankman-Fried replied.

FTX CEO

He also stated that he had relied on his legal team to prepare bank account applications for his businesses. “I trusted that they were proper forms,” he went on to say.

Prosecutors have argued that Mr Bankman-Fried’s claims that he acted on legal advice are immaterial if the solicitors were not fully informed.

The judge did not immediately rule on what testimony Mr Bankman-Fried may offer, but he did state that he was “dubious” about some of the points.

Spent FTX customers money

Mr Bankman-Fried spoke clearly and fluently at first, but faltered under a torrent of questioning from prosecutor Danielle Sassoon, who probed him about when he consulted lawyers and what he told them.

“Listen to the question and answer directly,” Judge Kaplan once told Mr Bankman-Fried. When asked if Alameda was entitled to spend FTX customer monies, Mr Bankman Fried replied, “I wouldn’t phrase it that way, but… yes.”

Ms Sassoon pressed him for more than a minute to cite to text in a policy between the two firms that gave him that notion. He eventually pointed to a section that specified the monies might be “held and or transferred.”

On Friday, Judge Lewis Kaplan will rule on what Mr Bankman-Fried can present to the jury.

Mr. Bankman-Fried’s anticipated court appearance gathered hundreds of curious members of the public, including screenwriters, pensioners, and others captivated by the former billionaire’s remarkable ascent and fall.

His presence in New York comes after 12 days of prosecution testimony in which close former colleagues testified. If convicted, he may face life in prison.

Former FTX Workers Plead Guilty

Defendants in the United States are not required to testify during trials, and are frequently cautioned against doing so because it exposes them to questioning by prosecutors. It also allows members of the jury who will determine the case to establish their own opinions, which may not be favourable.

“If the jury does not believe him, it’s a guaranteed conviction,” Jacob Frenkel, a former federal prosecutor who has been following the trial, told the BBC earlier this month.

Despite the risks, many experts watching the trial believed Mr Bankman-Fried would testify and offer his own account of events, attempting to discredit the prosecutors’ story.

FTX CEO

“The prosecutors have put on a pretty strong case,” Carl Tobias, a law professor at the University of Richmond, said. “I don’t know that there’s much downside in this case for him to testify given what we’ve seen so far.”

Prosecutors have built their case on testimony from three of his closest former friends and coworkers, all of whom have already pled guilty.

They have linked Mr Bankman-Fried to moves to withdraw funds from FTX and use them to repay lenders at his crypto trading firm, Alameda Research, acquire property, make investments, and make political contributions.

They claim he tried to conceal the transfers and their tight relationship, and lawyers have backed up their claims with text messages, spreadsheets, and tweets.

Throughout the trial, these witnesses, including his ex-girlfriend and former Alameda CEO Caroline Ellison, have emerged from hours of questioning with their credibility seemingly intact.

Mr Bankman-Fried’s defence team claims he followed “reasonable” business practises as his enterprises expanded swiftly.

Following the collapse of his enterprises last year, he admitted to managerial blunders in media interviews, including one with the BBC, but claimed he never intended to commit fraud.

Elizabeth Holmes is one of many high-profile defendants who have chosen to testify in their own defence.

The founder of blood-testing startup Theranos, who claimed she had no intention of defrauding investors, was eventually convicted on four of 11 counts and sentenced to more than 11 years in jail.

However, testifying can be advantageous. Tom Barrack, a former private equity executive and fundraiser for former President Donald Trump, and Lebanese billionaire Jean Boustani were both acquitted in separate, unconnected criminal prosecutions.

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP