The continuing cross-examination of Bankman-Fried is set to resume today after a four-hour grilling that exposed inconsistencies in his claims that he did not defraud customers of FTX, his bankrupt crypto exchange. Bankman-Fried made significant admissions, including his larger role at Alameda Research, the sister hedge fund at the center of a collapse that cost investors billions. Bankman-Fried’s decision to testify was seen as risky, and his performance drew rebukes from the judge, potentially damaging his credibility with jurors. The lead prosecutor used Bankman-Fried’s own words against him, highlighting contradictions in his claims to always have his customers’ backs. Other revelations include Alameda’s near-unlimited $65 billion line of credit with FTX and the admission that Alameda’s venture investments posed too much risk. Bankman-Fried also attempted to downplay media coverage of him and FTX. The trial is expected to intensify as three of Bankman-Fried’s colleagues have pleaded guilty and testified against him, and the prosecution has yet to question him on the events leading to FTX’s collapse.
In other news:
- Eurozone inflation cooled as the economy slowed, with lower-than-expected consumer price increases and a 0.1% decline in GDP in the third quarter.
- BP’s stock dropped after missing analyst forecasts for third-quarter earnings due to lower oil prices and disappointing gas trading performance. Saudi Arabia also reported a 4.5% decline in GDP.
- Samsung reported a rebound in the global computer chip market, with a 262% increase in profit, driven by improved sales of memory chips. Nvidia may cancel $5 billion worth of A.I. chip orders for Chinese customers due to U.S. export controls.
- The social network X valued itself at $19 billion, 55% less than what Elon Musk paid for it last year, reflecting disruptions in the business.
- General Motors reached a tentative deal with the U.A.W., becoming the last of the three major Detroit automakers to do so after weeks of strikes. The deals are seen as a victory for the U.A.W. but may impose financial burdens on the automakers as they transition to electric vehicles.
- An International Trade Commission ruling against Apple in a patent infringement case could potentially disrupt sales of the Apple Watch, leading to an import ban starting Dec. 26.
- Brendan McGuire is returning to the law firm WilmerHale as a partner after serving as chief counsel to New York City Mayor Eric Adams for nearly 20 months.