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‘Everything Everywhere’ Takes Top Prize at the Gotham Awards

by SITKI KOVALI 29 Nov 2022
written by SITKI KOVALI

The hit sci-fi comedy “Everything Everywhere All at Once” earned top honors at the Gotham Awards on Monday night, taking the ceremony’s best-feature prize as well as a supporting-performance trophy for the actor Ke Huy Quan.

“This time last year, all I was hoping for was just a job,” said an emotional Quan, who starred in “The Goonies” and “Indiana Jones and the Temple of Doom” as a child actor but then found work hard to come by. “Just when I think it can’t get any better, it does.”

The Gothams are the first big show of awards season, handing out prizes before the Screen Actors Guild and the Oscars have even announced their nominees. Though the winners are chosen by a jury made up of only a handful of film insiders, the Gothams can still provide momentum and a clutch of positive headlines for the contenders who triumph there.

One such victory came for lead performance. Since the Gothams have adopted gender-neutral acting categories, three significant contenders for the best-actress Oscar — Cate Blanchett (“Tár”), Michelle Yeoh (“Everything Everywhere All at Once”) and Danielle Deadwyler (“Till”) — faced off against “The Whale” star Brendan Fraser, the presumptive front-runner for the best-actor Oscar. And in that star-packed battle royale, Deadwyler, a rising actress, prevailed for her performance as Mamie Till-Mobley, who becomes an activist following the racially motivated murder of her son, Emmett Till, in 1955.

That will help Deadwyler earn more eyes for her movie, though she was absent from the ceremony, as was Steven Spielberg. He had been booked to present an honorary award to his “Fabelmans” star Michelle Williams but was forced to cancel after contracting Covid. Williams, another significant best-actress contender, took the stage to deliver a moving tribute to Mary Beth Peil, who played her grandmother on “Dawson’s Creek,” the teen drama in which Williams got her start.

“Whenever something good happens in my life, I can draw a straight line” back to Peil, said Williams, who credited the older actress with patiently teaching her lessons about the craft when Williams was still finding her way. “I wasn’t an artist or a mother, I wasn’t even a high school graduate,” Williams said. “But I was Mary Beth’s girl, and that made me a somebody.”

As an Oscar predictor, the Gotham Awards can be spotty: “Nomadland” kicked off its juggernaut run by winning the Gothams’ best-feature prize for 2020, though the Gothams victor for 2021, “The Lost Daughter,” didn’t manage to crack the Oscars’ best-picture lineup. And since the Gothams restrict eligibility to films made in the United States for less than $35 million, the ceremony spotlights a narrower slice of films than the Oscars do.

Still, it’s a great barometer for industry enthusiasm: At last year’s Gothams, the winning “CODA” star Troy Kotsur delivered such a well-received acceptance speech that future victories, including the Oscar, seemed almost assured. This year, enthusiasm was high for “Everything Everywhere,” directed by Daniel Scheinert and Daniel Kwan, which earned big cheers for its best-feature win but even bigger cheers for the endearing Quan, who plays Michelle Yeoh’s husband in the film and could be poised for a Kotsur-like sweep of the televised awards shows.

“Oftentimes, it is in independent films where actors who otherwise wouldn’t get a chance find their opportunities,” said Quan, who had spent decades behind the camera until “Everything Everywhere” revived his career. “I was that actor.”

Earlier in the show, held at Cipriani Wall Street, honorary awards were given out to “The Woman King” director Gina Prince-Bythewood and to the actor Adam Sandler, who brought the house down with a self-deprecating speech that he claimed had been written by his teenage daughters.

But the most thoughtful comment came from the writer-director Todd Field, who picked up a best-screenplay prize for “Tár” and used his acceptance speech to take aim at the entire notion of awards shows.

“‘Best.’ We all know that word is a cartoonish absolute with no place in any conversation about creative endeavors,” Field said. “But we campaign for it, we show up for it, we pray for it, if only so the thing we made will be seen and heard and not forgotten in this noisy world.”

29 Nov 2022 0 comment
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‘No Cooperation’: How Sam Bankman-Fried Tried to Cling to FTX

by SITKI KOVALI 29 Nov 2022
written by SITKI KOVALI

When the cryptocurrency exchange FTX filed for bankruptcy on Nov. 11, the company’s founder, Sam Bankman-Fried, announced the news in a contrite message on Twitter.

But his attempt to calm the situation belied what had just taken place within the company. As the crisis unfolded, a group of FTX lawyers and executives moved to strip authority from Mr. Bankman-Fried and urged the company’s top leaders to prepare for bankruptcy. For days, Mr. Bankman-Fried ignored their warnings and clung to power, seemingly convinced that he could save the firm, despite mounting evidence to the contrary.

“The exchanges must be halted immediately,” Ryne Miller, a top FTX lawyer, wrote in an email to Mr. Bankman-Fried and other staff on Nov. 10. “The founding team is not currently in a cooperative posture.”

Mr. Bankman-Fried eventually relented, stepping down as FTX’s chief executive and authorizing the company to file for bankruptcy. Dozens of pages of internal company emails and texts obtained by The New York Times offer a detailed look at those chaotic final days, as messages flew back and forth among FTX officials who seemed to be growing increasingly irritated with the 30-year-old founder.

Throughout, Mr. Bankman-Fried appeared deluded about FTX’s prospects, insisting that he could find a way to keep the company running, the documents show. A day before the bankruptcy filing, he told employees that he was trying to raise new funding, and as recently as last week he said he regretted authorizing the bankruptcy.

The messages reviewed by The Times and interviews with insiders show how a small group of lawyers and executives struggled to get through to Mr. Bankman-Fried, even appealing to his father as they pressed their case. While Mr. Bankman-Fried was scrambling to line up investors, Mr. Miller sent a text to top staff describing the prospect of a fund-raise as “0% likelihood.”

The push and pull continued into the early hours of Nov. 11, when Mr. Miller sent a series of messages urging Mr. Bankman-Fried to sign papers so the company could file for bankruptcy.

“Please can you sign the document,” he wrote at 2:29 a.m.

FTX’s implosion has set off one of the worst upheavals in the history of crypto. Until this month, Mr. Bankman-Fried was regarded as one of the few trustworthy figures in a freewheeling, loosely regulated industry. He built a business empire, invested in smaller crypto firms and lobbied aggressively in Washington.

Now his actions are devastating the industry. Hundreds of thousands of customers stored their funds on FTX, which provided a marketplace for people to buy and sell digital coins; the exchange owes its creditors an estimated $8 billion. And since the implosion, several major crypto firms with close ties to FTX have come under mounting financial pressure, as fears grow that the collapse could cause other companies to fail. On Monday, the crypto lender BlockFi filed for bankruptcy, citing the fallout from FTX’s disintegration.

Constance Wang, FTX’s chief operating officer and one of Mr. Bankman-Fried’s top lieutenants, told one of the company’s top lawyers as the crisis escalated: “I don’t want to stop trying yet.”Credit…Edwin Koo/Bloomberg

The legal ramifications are only beginning to take shape. Justice Department prosecutors are investigating FTX’s downfall, focusing on whether the exchange broke the law by lending its customers’ funds to the hedge fund Alameda Research, which Mr. Bankman-Fried also founded and owned. In bankruptcy court, FTX’s new chief executive has harshly criticized Mr. Bankman-Fried’s management of the company, calling it a “complete failure of corporate control.”

The Aftermath of FTX’s Downfall

The sudden collapse of the crypto exchange has left the industry stunned.

  • A Spectacular Rise and Fall: Who is Sam Bankman-Fried and how did he become the face of crypto? The Daily charted the spectacular rise and fall of the man behind FTX.
  • A Symbiotic Relationship: Mr. Bankman-Fried’s built FTX partly to help the trading business of Alameda Research, his first company. The ties between the two entities are now coming under scrutiny.
  • Missing Assets: Lawyers for FTX said a substantial amount of the company’s assets had either been stolen or were missing, casting doubt on the odds of recovering billions of dollars in crypto that customers lost.
  • A Bid for Influence: ​​In just three years, Mr. Bankman-Fried built a massive operation to woo politicians, regulators and nonprofits to support his crypto goals. Here’s how.

Reached by phone on Sunday night, Mr. Bankman-Fried declined to address the messages that top executives exchanged leading up to the bankruptcy filing. But he said that even after FTX’s collapse, he had found “numerous parties” willing to invest funds. He declined to name any of the possible investors.

Mr. Miller and an FTX spokesman declined to comment.

The crisis began on Nov. 8, when Mr. Bankman-Fried announced that a run on deposits at FTX had forced him to sell the company to one of its bitterest rivals, Binance. For about a day, the deal raised the prospect that FTX could survive as part of a giant exchange run by Binance. But after reviewing FTX’s financial records, Binance pulled out of the agreement, citing issues with “corporate due diligence.”

“Sam, I’m sorry,” Binance’s founder, Changpeng Zhao, wrote in a text message to Mr. Bankman-Fried. “But we won’t be able to continue this deal. Way too many issues. CZ.”

With FTX swiftly unraveling, Mr. Miller tried to seize control of the situation. A former lawyer for the Commodity Futures Trading Commission, Mr. Miller had served as general counsel of FTX’s U.S. arm since August 2021. While he never belonged to Mr. Bankman-Fried’s main circle of advisers in the Bahamas, where FTX was based, he had accompanied the young executive in meetings with regulators in Washington.

Early in the crisis, Caroline Ellison, the chief executive of Alameda, wrote in a group chat with Mr. Miller that she was “kinda worried that everyone is gonna quit/take time off,” adding an emoticon of a sweating face. Mr. Miller responded on Nov. 9 that FTX needed “a professional manager vested with decision-making authority.”

That afternoon, Mr. Miller asked Mr. Bankman-Fried and two other executives to shut down trading on FTX’s platforms. “Who can turn off the websites?” he asked in a group chat at 4:41 p.m. Two minutes later, he got a response from Constance Wang, FTX’s chief operating officer and one of Mr. Bankman-Fried’s top lieutenants.

“Ryne, I love you,” she wrote, “but I don’t want to stop trying yet.”

Mr. Miller and other FTX executives also urged Mr. Bankman-Fried to give up some control of his business empire. At one point, Zach Dexter, an executive who worked on FTX’s American business, asked Mr. Bankman-Fried to delegate authority over U.S. operations to him and Mr. Miller. In an exchange on the messaging system Slack, Mr. Bankman-Fried at first appeared to dodge Mr. Dexter’s question. Instead, he responded with proposed language for a banner on FTX’s U.S. website.

Soon other FTX officials joined in, urging Mr. Bankman-Fried to forgo some control.

“You can trust us,” Brian Mulherin, an FTX lawyer, wrote in a Slack message. “The public perception of having you and the other founders at the helm at this moment (especially but not exclusively in the U.S.) is not likely to produce good outcomes.”

Privately, senior FTX staff also pressed the case with Mr. Bankman-Fried’s father, the Stanford Law School professor Joe Bankman, a person familiar with the matter said.

But Mr. Bankman-Fried seemed convinced he could save FTX. In a message to employees on Nov. 10, he announced that he was hoping to secure new financing from the crypto entrepreneur Justin Sun. FTX had “a lot theoretically in and/or potentially for the raise,” he wrote.

John Jay Ray III, in court last week, is a corporate turnaround expert who is overseeing FTX’s bankruptcy.Credit…Sarah Silbiger/Bloomberg

Behind the scenes, pressure was growing to appoint a new executive to lead the exchange. On the night of Nov. 9, Andrew Dietderich, a lawyer at Sullivan & Cromwell, sent FTX executives the résumé of John Jay Ray III, a corporate turnaround expert who had led the unwinding of the energy company Enron after its collapse in an accounting scandal in 2001.

“Sam this is an excellent pick and I wholeheartedly hope you sign this tonight,” Mr. Dexter wrote in an email on the evening of Nov. 10. “The faster John is in place, the faster the company can resolve issues that require urgent progress.”

A flurry of emails followed. In a message at 3:38 a.m. on Nov. 11, Mr. Miller asked for an update on Mr. Bankman-Fried’s decision. “I am chatting with Sam,” responded Ken Ziman, a lawyer at the firm Paul Weiss who was representing Mr. Bankman-Fried.

Ten minutes later, Mr. Ziman confirmed that Mr. Bankman-Fried had signed the document, authorizing Mr. Ray to take over FTX. The company filed for bankruptcy a few hours later.

The filing was hardly the end of the chaos. The court submission listed more than 130 corporate entities tied to FTX, including its U.S. arm and Alameda, the hedge fund. But the filing was inaccurate: Some of the entities were not owned by the exchange. They belonged to AZA Finance, a separate company that had recently become partners with FTX to promote crypto in Africa.

FTX later acknowledged the error. But in a Nov. 11 Slack message to Mr. Miller and other officials, Elizabeth Rossiello, the chief executive of AZA Finance, called the mistakes in the bankruptcy filing “a storm of wild irresponsibility.”

“This is hurting 9 years of work we have done to create this platform!!” she wrote.

Mr. Miller responded defensively. “We had no cooperation of the founders in preparing this week,” he said. “It was unfortunate.”

Mr. Bankman-Fried was also frustrated. Despite giving up control of FTX, he continued contacting possible investors about new funding for the exchange. In a letter to former colleagues last week, he said he regretted filing for bankruptcy, claiming that “potential interest in billions of dollars of funding came in roughly eight minutes after I signed the Chapter 11 docs.”

He presented no evidence for that claim, and in any case, FTX was no longer his company to run. On the morning of Nov. 11, Mr. Miller moved quickly to make that clear, requesting the deletion of information about the firm’s old leadership from its website.

“Who can go to FTX.com and FTX US and remove the pictures and bios of the people under ‘about,’” he asked in a group chat with other executives.

Kitty Bennett contributed research.

29 Nov 2022 0 comment
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Ukraine Is Biden’s Defining Issue, and His Biggest Economic Challenge

by SITKI KOVALI 29 Nov 2022
written by SITKI KOVALI

Russia’s war in Ukraine has become the greatest economic challenge of President Biden’s time in office, threatening to push the world into a recession that could endanger an already fragile American recovery.

The combination of punishing sanctions, championed by Mr. Biden and his allies, and Russia’s retaliation has ricocheted through global food and energy markets, exacerbating already high inflation and undercutting global growth. An oil shock set off by the invasion sent average gasoline prices above $5 a gallon nationally in June, before they fell steadily in July and August.

This week, the European Union is expected to put finishing touches on a plan that would attempt to contain further economic damage by imposing a cap on the price that Russia can earn from selling a barrel of exported oil. The untested idea, engineered by Mr. Biden’s Treasury secretary, is aimed at keeping Russian oil flowing to the global market even as Europe plows ahead with new restrictions on Moscow’s oil sales.

In the year to come, that price cap and other efforts to manage the war’s global fallout should be Mr. Biden’s primary economic focus. With few legislative options available after his party lost control of the House, Mr. Biden will need to find ways to shield American markets from the war’s effects, including new international initiatives to bolster food supplies and ward off a potentially cascading financial crisis in developing nations.

Mr. Biden and his economic team spent much of the Group of 20 nations summit this month in Bali, Indonesia, laying the groundwork for those efforts. They negotiated with wealthy nations over the best ways to ramp up global food production to replace crops lost in Ukraine, in hopes of relieving food shortages that have particularly hurt lower-income countries. And they attempted to broker progress on a system to more readily bail out highly indebted, lower-income countries — like Sri Lanka and Chad — that face fiscal crises as war-inflamed price increases push central banks to raise interest rates and, with them, borrowing costs.

But Mr. Biden’s biggest economic decisions in the coming months are related to the war: how best to support Ukraine’s resistance to the Russian invasion and how aggressively to push for an end to the fighting.

The war has been a humanitarian crisis for Ukraine, but “it’s also been extremely costly for the world,” said Gita Gopinath, the first deputy managing director of the International Monetary Fund, who participated in the Group of 20 meetings. “We’re already in a pretty difficult situation even without dramatic escalation.”

Ms. Gopinath said that during the summit, “a common refrain from everybody was, the war needs to end, because the consequences for the economy are very high.”

Administration officials agree that the best way to strengthen the global economy in the coming months would be to hasten the end of the war — which Mr. Biden has repeatedly said must come on Ukraine’s terms.

In the meantime, administration officials say the centerpiece of their efforts to minimize economic damage is a plan to impose an oil price cap — at a level that European officials are still haggling over — on Russian exports. Mr. Biden has pushed the idea through months of transcontinental negotiations. Its goal is to keep millions of barrels of Russian oil flowing to the global market even as European sanctions come online — while locking in a reduction in the revenues Moscow needs to continue its war effort.

The plan is essentially a way to avoid a potentially catastrophic global oil shock that Mr. Biden might otherwise have helped to set in motion this year when he encouraged Europe to follow America’s lead and ban imports of Russian oil. Administration officials are confident the cap will do just that, keeping oil on the market, even though the high level of the price cap will limit its bite into Russian revenues.

“It’s safe to say that we’re optimistic that a successful price cap will avoid a major energy price shock,” Ben Harris, the assistant secretary for economic policy at the Treasury Department, said in an interview. He added: “This is a case of advance planning avoiding a crisis.”

The president has few domestic options if those plans fail. Because his party lost control of the House, Mr. Biden will almost certainly be limited in his ability to push new economic measures through Congress over the next two years.

The International Monetary Fund and the Organization for Economic Cooperation and Development have cut their forecasts for global growth next year, citing lingering drags from the Russian invasion.

The war, leaders of the Group of 20 nations said in a declaration at the end of their summit in Bali, “is causing immense human suffering and exacerbating existing fragilities in the global economy — constraining growth, increasing inflation, disrupting supply chains, heightening energy and food insecurity and elevating financial stability risks.”

At the Group of 20 summit in Bali this month, Mr. Biden and his economic team pushed other policies to soften the war’s economic damage.Credit…Doug Mills/The New York Times

Mr. Biden cannot end the war on his own. But he can seek to minimize its economic pain.

That starts with the price cap. A European Union ban on the import of Russian oil will go into effect next month. Those sanctions could knock millions of barrels of Russian oil off global markets and send crude prices soaring.

The price cap attempts to defuse that possibility with a novel but untried plan to allow Russia to continue selling oil on the global market, but at a discount. That would reduce the oil revenues Moscow is using to help fund the war. It would also keep oil prices steadier and avoid what some forecasters estimate could be as much as $7 a gallon gasoline in the United States. And it would relieve some strains on developing nations that are struggling economically, by potentially allowing them to buy Russian oil at a sharp discount from market prices.

Oil futures traders appear to share the administration’s confidence that the plan will work: They have not priced in any disruptions to the market in the months to come.

Russia could still retaliate against the plan and pull oil off the market, sending prices soaring anew but also cutting off revenues to Moscow. It could also raise economic risks to the world by escalating the war.

Moscow has recently ramped up its rocket attacks on Ukrainian targets, including civilians.An apparently accidental detonation of a Ukrainian missile in Poland has reminded the world of the risks of an escalation of the conflict that could spill past Ukraine and into Europe and beyond. Mr. Biden has thus far succeeded in preventing escalation by keeping the conflict from directly affecting NATO allies like Poland. More stray missiles — or provocations by Moscow — could challenge that calculus.

Tankers outside Nakhodka, a Russian port city. A price cap on Russian oil could defuse the possibility of a global oil shock.Credit…Tatiana Meel/Reuters

Mr. Biden insists the American economy, with a labor market that continues to add jobs at a hot pace, is well positioned to endure any new drags on the global economy from the invasion. His aides note the United States, as a large energy producer, is not suffering like Europe from a lack of access to Russian oil or natural gas.

He has faced little domestic political pressure over his Ukraine decisions thus far. While the war has filled newscasts and commanded much of Mr. Biden’s time, including frequent speeches, it has not yet become an electoral wedge issue. Ukraine did not make the list of the top 60 topics of campaign advertisements nationwide in the midterm election cycle, according to data from AdImpact.

But should Mr. Biden seek re-election, the economics of the war could play a large role. It could push up gas prices, which tend to affect the public’s view of the president. Stubbornly high food and energy inflation could prod the Federal Reserve to raise interest rates faster, and for longer, than officials currently forecast. That would slam the brakes on growth and raise the odds of recession.

Mr. Biden has repeatedly said those threats would not deter him from doing what he believed was right in Ukraine. Asked at a news conference in Spain this summer how long Americans would need to pay higher gas prices as a result of the war, Mr. Biden was blunt. “As long as it takes,” he said, “so Russia cannot, in fact, defeat Ukraine and move beyond Ukraine. This is a critical, critical position for the world. Here we are.”

In a news conference in Bali this month — after both surprising success in the midterms and several days of centering economic issues in conversations with foreign leaders — Mr. Biden did not specify any updates on how long that process of defeating Russia might take, and what toll it might take on the economy.

He took only five questions, none of them on economic issues.

Alan Rappeport contributed reporting.

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China Says It Will Do More to Vaccinate Older People Against Covid

by SITKI KOVALI 29 Nov 2022
written by SITKI KOVALI

Faced with growing social unrest over its tough pandemic measures, China said on Tuesday it would ramp up vaccination of its oldest citizens, a move that experts have argued is crucial if the world’s second largest economy is to ease Covid measures and reopen its economy.

Authorities will bring vaccines to people in nursing homes, go door-to-door, use mobile vaccination stations and press those who are reluctant to give a reason, according to a statement from the National Health Commission. About 90 percent of China’s total population is fully vaccinated, but among those 80 and older, the number is much lower — 65.8 percent are fully vaccinated, and only 40 percent have received a booster.

“It is necessary to speed up vaccination, especially the vaccination of the elderly,” said Xia Gang, a National Health Commission official in charge of vaccination. “I hope that elderly friends will actively complete the vaccination as soon as possible to protect the health of themselves and their families.”

The new initiative was made public ahead of a news conference with officials from China’s top health bodies on Tuesday afternoon. News of the briefing prompted rumors that authorities were considering easing testing and isolation requirements, stoking optimism in Asian financial markets that China was ready to make a bigger move away from its “zero Covid” rules. Despite no signs of a broader shift, investors appeared to be relieved that Chinese officials were making any effort.

Hong Kong’s market finished 5 percent higher, while in Shanghai and Shenzhen, stocks rose more than 2 percent.

Similar optimism fueled a rally in Chinese stocks earlier this month when investors on Wall Street made a bet that China would loosen its measures amid growing economic pain. That positive sentiment remained as China’s National Health Commission issued a flurry of small changes aimed at narrowing the scope of the country’s vast and intrusive pandemic apparatus.

But in the weeks since, it became clear that these measures would not amount to a broader shift in the “zero Covid” policy, and fears about the effect on the global economy have grown.

China faces a predicament: Its top leadership recognizes that a blanket approach to controlling the virus is taking an increasingly large economic and social toll, but leaders are worried that widespread infections will overwhelm a rickety health care system.

The pressures have become more acute in recent days, with people across China taking to the streets in a rare show of public protest against tough Covid lockdowns.

Chinese officials regularly point to the country’s vulnerable population — the old and very young — as a primary reason for why the country cannot afford to ease up.

China’s top leader, Xi Jinping, most recently called the “zero Covid” approach an “all out people’s war to stop the spread of the virus,” that has put “the people and their lives above all else.”

Joy Dong contributed to reporting from Hong Kong.

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Here’s the Latest on the FTX Collapse

by SITKI KOVALI 29 Nov 2022
written by SITKI KOVALI

FTX, one of the world’s largest cryptocurrency exchanges, collapsed with stunning speed this month.

A run on deposits left the company owing customers $8 billion, setting off a chain of events that has shaken the crypto world and driven investigations by the Securities and Exchange Commission and the Justice Department.

This time last month, the $32 billion cryptocurrency company managed billions of dollars’ worth of customer assets; now, FTX could owe money to more than a million people and organizations.

Just three weeks ago, Sam Bankman-Fried, the founder and chief executive of FTX and the figure at the center of the crisis, was trying to reassure his customers. “FTX is fine,” he wrote on Twitter. “Assets are fine.” The next day, Mr. Bankman-Fried announced his plan to sell FTX to Binance, a rival cryptocurrency exchange.

In a matter of days, Binance pulled out of the deal, FTX filed for bankruptcy and Mr. Bankman-Fried, once a star in the world of crypto, had tendered his resignation.

Here are the latest developments on the crisis:

What’s the latest on the FTX bankruptcy?

On Nov. 22, a new chapter for FTX began as it kicked off its bankruptcy proceedings at a federal court in Delaware.

The Aftermath of FTX’s Downfall

The sudden collapse of the crypto exchange has left the industry stunned.

  • A Spectacular Rise and Fall: Who is Sam Bankman-Fried and how did he become the face of crypto? The Daily charted the spectacular rise and fall of the man behind FTX.
  • A Symbiotic Relationship: Mr. Bankman-Fried’s built FTX partly to help the trading business of Alameda Research, his first company. The ties between the two entities are now coming under scrutiny.
  • Missing Assets: Lawyers for FTX said a substantial amount of the company’s assets had either been stolen or were missing, casting doubt on the odds of recovering billions of dollars in crypto that customers lost.
  • A Bid for Influence: ​​In just three years, Mr. Bankman-Fried built a massive operation to woo politicians, regulators and nonprofits to support his crypto goals. Here’s how.

James Bromley, a partner at the law firm Sullivan & Cromwell who is representing FTX, said that “a substantial amount of assets have either been stolen or are missing.”

The bankruptcy case involves more than 100 companies and could affect more than a million creditors.

Mr. Bankman-Fried, 30, was replaced as chief executive of FTX this month by John Jay Ray III, a veteran of corporate turnarounds including Enron’s bankruptcy proceedings. Mr. Ray wrote in a scathing court filing in the U.S. Bankruptcy Court for the District of Delaware that he had never encountered “such a complete failure of corporate control.”

“This situation is unprecedented,” Mr. Ray added in the filing.

How could this affect BlockFi and other businesses?

FTX’s implosion sent shock waves through the crypto and financial communities. Numerous funds and crypto start-ups were entangled with FTX, which extended lifelines to other firms after the crypto market crashed in the spring.

Crypto asset prices sank on Monday, and the price of Bitcoin fell.

On Monday, BlockFi, a cryptocurrency lender and financial services firm with close ties to FTX, filed for bankruptcy. BlockFi had suspended withdrawals this month, explaining that it had “significant exposure” to FTX.

Genesis Global Capital, a crypto lender that was a trading partner with FTX, told its customers this month that it would halt withdrawals because of liquidity issues.

Genesis then hired a restructuring adviser as it explores options including a potential bankruptcy. About $175 million of its assets were in FTX when the exchange froze accounts.

What do we know about Sam Bankman-Fried?

Mr. Bankman-Fried faces investigations by the S.E.C. and the Justice Department. They will hinge on the question of whether FTX illegally lent customers’ funds to Alameda Research, a crypto hedge fund that Mr. Bankman-Fried also founded.

“It’s somewhere between being, on one hand, allegedly an extraordinary crime, and simultaneously being just the most extraordinary sloppiness and failure of basic controls,” said Eugene Soltes, an expert on corporate integrity at Harvard Business School. If a traditional brokerage firm had been accused of using customer funds in a similar way, he added, “there would be F.B.I. agents walking down the halls, picking up documents and computers.”

In the courtroom last week, lawyers for FTX did not spare Mr. Bankman-Fried. “The emperor had no clothes,” Mr. Bromley said, adding that Mr. Bankman-Fried ran FTX as a “personal fiefdom.”

Before his downfall, Mr. Bankman-Fried was prominent member of the effective altruism community, a movement dedicated to maximizing the impact of donations that is popular in Silicon Valley.

Mr. Bankman-Fried also donated to political causes and candidates. He gave about $40 million to federal campaigns and committees that primarily supported Democrats in the months leading up to the 2022 elections, according to Federal Election Commission records. Those efforts made him the party’s second-biggest donor, behind George Soros, the billionaire financier.

Who else is key to FTX’s rise and fall?

More than 80 investors poured nearly $2 billion into the company over two years, often agreeing to invest in the buzzy company with little oversight. No investors sat on FTX’s board of directors, and FTX did not tell investors about the nature of its relationship with Alameda Research.

FTX’s investors included powerful and well-known firms including Sequoia Capital, SoftBank and BlackRock. Sequoia, which published a glowing profile of Mr. Bankman-Fried on its website this year, apologized to its limited partners for its investment in FTX, which it now values at $0.

Caroline Ellison, who served as the chief executive of Alameda Research, is a major character in the FTX fallout, as well. The week that FTX and Alameda collapsed, Ms. Ellison told employees that her company had dipped into FTX customer funds.

Ms. Ellison, 28, a Stanford graduate who was at times romantically involved with Mr. Bankman-Fried, lived in a residence in the Bahamas with nine roommates including Mr. Bankman-Fried and other top FTX executives.

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With No Major Releases to Challenge Her, Taylor Swift Sticks at No. 1

by SITKI KOVALI 29 Nov 2022
written by SITKI KOVALI

Squint and you might mistake the latest Billboard album chart for last week’s: Almost all of the top slots are unchanged, led by Taylor Swift at No. 1 for a fourth time with “Midnights.”

With no major new releases rising to challenge it, “Midnights” remains at the top with the equivalent of 177,000 sales in the United States, including 156 million streams and 57,000 copies sold as a complete package, according to the tracking service Luminate. Since its blockbuster release last month, “Midnights” has moved the equivalent of 2.6 million copies, including 1.4 billion streams.

The next three spots on the chart are also unchanged: Drake and 21 Savage’s “Her Loss” (No. 2), Bad Bunny’s “Un Verano Sin Ti” (No. 3) and Lil Baby’s “It’s Only Me” (No. 4). Morgan Wallen’s “Dangerous: The Double Album” rises one spot to No. 5 in its 98th week on the chart, all but one of them spent in the Top 10.

The highest-charting new release is “Jupiter’s Diary: 7 Day Theory,” an eight-track EP by the Florida rapper and singer Rod Wave, arriving at No. 9.

Among the few other notable changes in the Top 10 this week are Michael Jackson’s “Thriller,” which rises 108 spots to No. 7 after the release of an expanded edition for the classic album’s 40th anniversary, and the return of holiday music with Michael Bublé’s “Christmas” — a seasonal hit each year since its release in 2011 — which lands at No. 10.

29 Nov 2022 0 comment
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‘The Gett’ Review: Jewish History and a Woman’s Future

by SITKI KOVALI 29 Nov 2022
written by SITKI KOVALI

It is something of a shock to encounter Jennifer Westfeldt, as gorgeous and screwball-comedy perfect as ever, playing the mother of an actual grown-up — a daughter deep enough into adulthood that not only has she gotten married, but now she’s getting a divorce.

Your brain may do some contortions as it attempts to adjust, but the effervescent Westfeldt — star of the classic rom-com movies “Friends With Kids” and “Kissing Jessica Stein” —has indeed taken up the Jewish-mother mantle. As Mama in Liba Vaynberg’s ambitious, off-kilter play “The Gett,” at Rattlestick Theater in Greenwich Village, Westfeldt handily steals the show.

Mama’s daughter, Ida (pronounced EE-da), a poet with a day job at a library, is rather less interesting. This is unfortunate, given that she is the main character.

One Dec. 25, en route to a friend’s party, Ida (Vaynberg) gets stuck in an elevator with a guy who is smolderingly hot despite his penchant for magic tricks. (The show’s magic consultant is Alexander Boyce.) The stranger is attracted to Ida even after she flosses her teeth in front of him, right there in the elevator.

This is Baal (Ben Edelman), Ida’s future husband and eventual ex. His name, a note in the script explains, “is the Hebrew word for husband, master, and a false violent god who is eventually banished.” Romantically, Baal is not a healthy choice.

Directed by Daniella Topol, “The Gett” is about his banishment, but its principal subject is Ida’s struggle to remake herself after their divorce. (A gett is a Jewish divorce decree.) Subtitled “One Woman’s Creation Myth,” the play borrows its seven-part structure from the seven-day creation of the heavens and Earth in the Book of Genesis. Within that framework, the first day is Ida and Baal’s meet-cute.

The play slip-slides between the contemporary and the ancient, the real and the surreal. When Ida asks her divorce lawyer (Luis Vega) what the date is, he replies: “Well, there was light on the first day, and now we’re drawing a line that separates the heavens from the earth. So, the second day of creation.”

It’s a difficult tone to strike, more so given the production’s unbalanced dynamic. Ida is curiously drab, lacking the pull of sympathy; scenes between her and a series of male characters (played by Vega) don’t breathe as deeply as they need to. But whenever Baal appears, things perk up — because the dark magnetism that makes it so hard for Ida to get him out of her head works on the audience, too. He is a beguiling presence, inhabiting a nearly spectral dimension.

And Mama is all exuberance, with a delightful comic fizz. Rambling to Ida in voice mail after voice mail, she roots for her unconditionally.

“You were so weird,” she tells Ida, remembering her as a child, and there’s no mistaking that this oddness was a good thing,worth cherishing.

Produced in partnership with Congregation Beth Elohim in Brooklyn,“The Gett” intends to work on two levels, as one woman’s divorce story and as a play laden with meaning from Jewish history and culture. The script contains plenty of layers. But in performance, flatness too often dominates.

Then the scene changes, Ida’s voice mail beeps, and Mama returns, persistent in her love.

“This is your mother,” she says, and for a few moments all is well again.

The Gett
Through Dec. 11 at Rattlestick Theater, Manhattan; rattlestick.org. Running time: 1 hour 30 minutes.

29 Nov 2022 0 comment
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technology

Elon Musk Takes On Apple’s Power, Setting Up a Clash

by SITKI KOVALI 29 Nov 2022
written by SITKI KOVALI

SAN FRANCISCO — “What’s going on here @tim_cook?” Elon Musk tweeted on Monday to Tim Cook, the chief executive of Apple, igniting a spat between the world’s richest man and the world’s most valuable public company.

In a series of tweets over 15 minutes, Mr. Musk, the new owner of Twitter, accused Apple of threatening to withhold Twitter from its App Store, a move that would limit some new users from downloading the app. The action would amount to censorship, Mr. Musk said. He added that Apple had also reduced its advertising spending on Twitter.

With the tweets, Mr. Musk set the stage for a power struggle with Mr. Cook, who holds immense influence over other tech companies through Apple’s dominance. Mr. Musk has a vested interest now in Apple’s clout because of his ownership of Twitter, which he bought last month for $44 billion and which is used by iPhone owners around the world. In one tweet, Mr. Musk implied he was ready for “war” with Apple.

A spokesman for Apple did not immediately respond to a request for comment.

Apple’s power over mobile apps begins with its App Store, a prime gateway where billions of iPhone users download Twitter, Facebook, Snapchat, games and all sorts of other software programs. Apple charges a 30 percent fee to developers to sell their software in the store, which has turned apps into a multibillion-dollar business for the Silicon Valley company and made it an arbiter of software distribution.

But that power has created a backlash among app developers, and Apple has faced growing pressure from regulators and politicians around the world over the App Store and its policies. Its App Store is the target of an antitrust investigation by the Justice Department. Last year, the Senate also introduced antitrust legislation aimed at fostering competition with both Apple’s and Google’s app stores.

With just a few changes, Apple can also affect mobile advertising. Last year, it made a series of tech changes to enhance people’s privacy with mobile apps. Those shifts made it harder for many apps to target advertising to users, rankling tech executives including Mark Zuckerberg, the chief executive of Meta, which owns Facebook and Instagram.

Apple also requires companies to create a “safe experience” for their apps to be listed in its App Store. In the past, Apple and Google have used their positions as the essential link between app developers and consumers to press for content moderation. After the Jan. 6 riot at the U.S. Capitol last year, Apple blocked the “free speech” social network Parler from appearing in its App Store until the service introduced guardrails to prevent calls for violence on the service.

“In my time at Twitter, representatives of the app stores regularly raised concerns about content available on our platform,” Yoel Roth, Twitter’s former head of trust and safety, wrote in an editorial in The New York Times this month. Mr. Roth said App Store reviewers had raised concerns about pornography and racial slurs on Twitter.

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Business

U.S. Crypto Exchange Kraken Settles With Treasury Dept.

by SITKI KOVALI 28 Nov 2022
written by SITKI KOVALI

Kraken, a U.S. cryptocurrency exchange, agreed on Monday to pay more than $360,000 to the Treasury Department to settle accusations of sanctions violations involving virtual currency transactions by users in Iran.

The Treasury Department’s Office of Foreign Assets Control said Kraken, the second-largest crypto exchange by volume in the United States, had agreed to a settlement for enabling nearly $1.7 million of transactions to individuals who appeared to be in Iran between October 2015 and June 2019. The United States imposed sanctions against Iran in 1979, prohibiting the export of goods or services to people or entities in the country.

In its statement, the office said the maximum civil monetary penalty for the violations could be more than $270 million but determined that the settlement would be much less because Kraken had reported the potential violations. In addition, the company agreed to spend an additional $100,000 on new compliance controls.

“Kraken failed to exercise due caution or care for its sanctions compliance obligations,” the statement said. It added that the company had user data that showed “transactions appear to have been conducted from Iran.”

The settlement comes at a tumultuous moment for the crypto industry. This month, one of Kraken’s rivals, the Bahamas-based exchange FTX, collapsed after a run on deposits, sending the industry into one of the worst crises in its history. On Monday, another major crypto company, the lender BlockFi, filed for bankruptcy, citing the impact of FTX’s implosion.

Kraken, a private company valued at $11 billion that allows users to buy, sell or hold various cryptocurrencies, faced previous regulatory actions, including a $1.25 million penalty from the Commodity Futures Trading Commission for offering a prohibited trading service. Jesse Powell, the company’s co-founder and chief executive, announced in September that he was stepping down after internal conflicts with employees and government investigations.

In July, The New York Times reported that the Office of Foreign Assets Control had been investigating Kraken since 2019. The previous month, Mr. Powell circulated a spreadsheet on the messaging system Slack that appeared to show that Kraken had serviced accounts in sanctioned countries such as Iran. He said the data came from residence information listed on “verified accounts.”

Last month, the Office of Foreign Assets Control announced its largest penalty for sanctions violations by a crypto company, fining cryptocurrency exchange Bittrex $24 million for allowing customers in Cuba, Iran, Sudan, Syria and Russian-occupied Crimea to make virtual currency transactions valued at more than a reported $263 million.

28 Nov 2022 0 comment
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A Paris Museum Has 18,000 Skulls. It’s Reluctant to Say Whose.

by SITKI KOVALI 28 Nov 2022
written by SITKI KOVALI

PARIS — With its monumental Art Deco facade overlooking the Eiffel Tower, the Musée de l’Homme, or Museum of Mankind, is a Paris landmark. Every year, hundreds of thousands of visitors flock to this anthropology museum to experience its prehistoric skeletons and ancient statuettes.

But beneath the galleries, hidden in the basement, lies a more contentious collection: 18,000 skulls that include the remains of African tribal chiefs, Cambodian rebels and Indigenous people from Oceania. Many were collected in France’s former colonies, and the hoard also includes the skulls of more than 200 Native Americans, including from the Sioux and Navajo tribes.

The remains, kept in cardboard boxes stored in metal racks, form one the world’s largest human skull collections, spanning centuries and covering every corner of the earth.

But they are also stark reminders of a sensitive past and, as such, have been shrouded in secrecy. Information on the skulls’ identities and the context of their collection, which could open the door to restitution claims, has never been made public, but is outlined in museum documents obtained by The New York Times.

A confidential memo said that the collection included the bones of Mamadou Lamine, a 19th-century West African Muslim leader who led a rebellion against French colonial troops; a family of Canadian Inuits exhibited in a Paris human zoo in 1881; and even five victims of the Armenian genocide in the mid-1910s.

“Sometimes, the supervisors would say, ‘We must hide,’” said Philippe Mennecier, a retired linguist and curator who worked for four decades at the Museum of Mankind. “The museum is afraid of scandal.”

That opacity has been at odds with France’s growing reckoning with its colonial legacy, which has shaken many of its cultural institutions. It has also hindered claims for restitution of items from former colonies or conquered peoples, in which human remains are often named as a priority — an issue currently roiling Europe’s grand museums.

While France has led the way in Europe in investigating and returning colonial-era collections of artifacts — cultural objects, made by human hands — it has lagged behind its neighbors when it comes to remains.

Museums in Germany, the Netherlands and Belgium have all developed clear protocols for dealing with remains, with different restitution criteria from artifacts. Claims for cultural objects usually consider the conditions under which they were taken; for remains, a claimant usually just has to prove an ancestral connection. In several recent high-profile cases, museums in those countries have returned skulls and mummified heads, with promises for further transparency and accountability.

In the United States, a 1990 federal law has facilitated the return of Native American remains, although restitutions have moved at a slow pace. A number of prominent universities and museums, including University of Pennsylvania Museum of Archaeology and Anthropology and the Smithsonian Institution have discussed, and in some cases, developed policies for how to deal with the remains of enslaved people that are held in their collections.

Mana Caceres, left, and Kalehua Caceres at a ceremony at the Übersee Museum in Bremen, Germany. In February, the museum was one of several German institutions to return human remains from Hawaii.Credit…Volker Beinhorn/Übersee-Museum Bremen, via Reuters

But in France, critics say, the Museum of Mankind limits research into sensitive items in its collection, withholding essential information for restitution claims. The museum has a longstanding policy of only returning “nominally identified” remains, meaning corpse fragments from a specific person with a connection to the claimant. Some scholars say it is a restrictive tactic designed to block returns.

Christine Lefèvre, a top official at the Museum of Natural History, which oversees the Museum of Mankind, said, “The collections are open to anyone who comes with a solid and serious research project.”

The Fine Arts & Exhibits Special Section

  • Bigger and Better: While the Covid-19 pandemic forced museums to close for months, cut staff and reduce expenses, several of them have nevertheless moved forward on ambitious renovations or new buildings.
  • A Tribute to Black Artists: Four museums across the country are featuring exhibitions this fall that recognize the work of African and African American artists, signaling a change in attitude — and priorities.
  • New and Old: In California, museums are celebrating and embracing Latino and Chicano art and artists. And the La Brea Tar Pits & Museum is working to engage visitors about the realities of climate change.
  • A Cultural Correction: After removing all references to Columbus from its collections the Denver Art Museum has embraced a new exhibition on Latin American art.
  • More From the Special Section: Museums, galleries and auction houses are opening their doors wider than ever to new artists, new concepts and new traditions.

What is more, French legislation has made any return a cumbersome and time-consuming process.

“Our museums should do some soul-searching,” said André Delpuech, a former director of the Museum of Mankind who left that post in January. “But so far, it’s been a head-in-the-sand approach.”

As with other 19th-century museums, the museum was initially a repository for items gathered from around the world. The skulls were collected during archaeological digs and colonial campaigns, sometimes by soldiers who beheaded resistance fighters. Prized by researchers working in the now-debunked field of race science, the remains then fell into relative oblivion.

In 1989, Mennecier, the curator, put together the first electronic database of the collection. It enabled him to identify hundreds of what he called “potentially litigious” skulls — remains of anticolonial fighters and Indigenous people, collected as war trophies or plundered by explorers — that could be claimed by people wishing to honor their ancestors.

Sensing potential trouble as restitution claims increased internationally, Mennecier said he warned museum leaders multiple times over several years about the sensitive remains, urging them “to inform the highest government authorities, possibly the embassies, the relevant communities.”

But those calls went unheeded, he and Alain Froment, an anthropologist at the museum said, leaving foreign governments and Indigenous communities in the dark.

“It’s incredibly difficult to understand what’s in their collection,” said Shannon O’Loughlin, the chief executive of the Association on American Indian Affairs, a nonprofit promoting Native American cultural heritage. She added that her “heart fell” when she learned of the Sioux and Navajo skulls in the Museum of Mankind basement.

Hundreds of thousands of visitors flock to the Museum of Mankind in Paris every year to experience its collection, with prehistoric skeletons and ancient statuettes.Credit…JC Domenech, via National Museum of Natural History, France.
A skull on display in the museum. Eighteen-thousand more skulls are kept in cardboard boxes in the basement.Credit…Godong/Universal Images Group, via Getty Images

The museum has published only a stripped-down online version of its skull database, sharing no names or biographical details, even though the list seen by The Times contains this information about hundreds of remains.

Lefèvre and Martin Friess, who is responsible for the Museum of Mankind’s modern anthropology collections, said the information was withheld because of privacy concerns, fear of controversy and because of uncertainties around some remains’ identities.

For instance, the provenance of a skull listed as belonging to a Sioux chief named White Cloud was in doubt, said Friess, who has researched the case further.

But several scholars and lawmakers said the museum’s stance stemmed from a greater concern: that transparency could open the floodgates for restitution claims.

Like other institutions, the Museum of Mankind has faced growing repatriation requests — from countries including Madagascar and Argentina, and from Indigenous people in Hawaii. But unlike many counterparts in Europe and the United States, the museum has not invested significantly in provenance research for its human remains collection, nor published guidelines for their handling and return.

Over the past two decades, France has returned only about 50 sets of remains, including to South Africa, New Zealand and Algeria. By comparison, Germany returned eight times as many over the same period, according to a researcher at Brandenburg Medical School.

“It does make France seem behind,” said Jeremiah Garsha, a historian at University College Dublin, noting that the country “has a much longer colonial history and less of a track record” than Germany.

Part of the reason for this discrepancy are policies like the Museum of Mankind’s nominal identification requirement. Plans to return Australian Indigenous remains in the collection, most of which are unidentifiable, have stalled as a result, according to Mennecier and Froment.

A top official overseeing the museum said, “The collections are open to anyone who comes with a solid and serious research project.”Credit…Violette Franchi for The New York Times

That policy, however, is not shared by other European museums and “has no clear legal basis,” as noted in the confidential museum memo. It also contradicts a 2018 government-commissioned report, also obtained by The Times, which recommended considering as returnable anonymous remains that could be connected to a family or an Indigenous group. (The report, which encouraged France to take a proactive stance on restitution, was never made public and its proposals were never enacted.)

Lefèvre, the museum official, said that community affiliation was too vague a criterion, noting that connections with 19th-century groups were hard to establish. But she added that anonymous skulls of individuals whose social functions can be determined, such as tribal leaders, could be deemed returnable.

Klara Boyer-Rossol, a historian who has studied remains from Madagascar, said the museum’s identification policy was restrictive, unrealistic and possibly designed to limit restitutions.

“It’s completely hypocritical,” Boyer-Rossol said, adding that most of the skulls were collected without documentation and that, in her view, the museum puts up obstacles to academic research despite recent efforts at transparency. It took her 10 years to gain full access to the museum’s database on Madagascar, she said.

To make matters more complicated, objects in public museum collections are the property of the French state and cannot change ownership unless the return is voted into law — a cumbersome process that has sometimes led France to lend remains instead of ceding possession.

A representative for France’s culture ministry said officials were working on a sweeping law to regulate future returns of human remains.

But Pierre Ouzoulias, a left-wing French senator who has produced several reports on restitution, said the government had shown anything but good will. It has rejected a Senate proposal to establish a scientific advisory council on restitutions and has yet to examine a

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