A federal jury has found Sam Bankman-Fried, the founder of FTX, guilty on all seven counts of fraud and conspiracy he was charged with in relation to the downfall of his cryptocurrency exchange. According to The New York Times, he faces a maximum sentence of 110 years in federal prison. Bankman-Fried was arrested in the Bahamas back in December 2022 after the Department of Justice took a close look at his role in the rapid collapse of FTX. The agency examined whether he transferred hundreds of millions of dollars when the exchange filed for bankruptcy and whether FTX broke the law when it moved funds to sister company Alameda Research.

During Bankman-Fried's trial that took place over the past month, prosecutors argued that he used FTX's funds to keep Alameda Research running. The fallen entrepreneur also founded the cryptocurrency hedge fund, which was ran by his girlfriend Caroline Ellison, who was aware that he used FTX customers' money to help Alameda meet its liabilities. Bankman-Fried previously denied that he deliberately misused FTX's funds. The Times says his lawyers tried to portray him as a math nerd who had to grapple with "forces largely outside of his control," but the jury clearly disagreed after the prosecution called Ellison and three of Bankman-Fried's former top advisers to the witness stand. Ellison and all of those advisers had pleaded guilty, with the Alameda Research chief admitting that she committed fraud at Bankman-Fried's direction.

Bankman-Fried was charged with wire fraud on FTX customers, wire fraud on Alameda Research lenders, conspiracy to commit wire fraud on both, conspiracy to commit securities and commodities fraud on FTX customers, as well as conspiracy to commit money laundering. He is scheduled to be sentenced on March 28, 2024 by US District Judge Lewis A. Kaplan, who also presided over his trial. 

Apple's latest earnings report paints a picture of software wins amid a hardware slump. In a statement announcing the financial results for its fiscal fourth quarter, the company called out a new all-time high for revenue from its Services products. It also highlighted iPhone revenue as having set a September quarter record. However, this marks the fourth consecutive quarter of overall revenue decline, with its earnings of $89.5 billion representing a 1 percent drop year over year. This also means the record-breaking performances of the iPhone and Services divisions did little to offset weakness elsewhere. 

The lackluster performance is somewhat understandable, though. The company just had a launch event for its new M3 chips, MacBooks and an iMac this week, none of which can be bought yet. And though the new iPhone 15 lineup and Apple Watches were introduced in September, sales of those devices likely did not account for much of this fiscal quarter’s results. We're also anticipating a November release for new iPads this year, which could further fuel hardware revenue. 

Correspondingly, the Mac, iPad and wearables divisions were down this quarter, with the first two taking noticeable hits. Though Apple drummed up significant interest with the Vision Pro headset earlier this year, that device is far from ready to be sold to the public and is unlikely to hit the market until 2024 at the earliest. With holiday shopping about to ramp up, as well as more product releases on the horizon, it’s much more likely that the company’s hardware products will have a greater impact on its bottom line next quarter.

Samsung has been reporting steep profit declines and record-breaking losses over the past quarters, and while it has yet to go back to its previous numbers, it sounds optimistic for the future in its latest earnings report. The company credited the strong sales of its mobile flagship devices and its premium displays for doing better the past three months than the previous quarters. Samsung also said that its Device Solutions (DS) division, which includes its memory and foundry businesses, has narrowed its losses. It even expects demand for memory chips to recover gradually with the rise in popularity of artificial intelligence. 

The company has posted a consolidated revenue of KRW 67.40 trillion ($49.9 billion) for the third quarter of 2023, which shows a respectable 12 percent increase from the previous quarter's. It reported KRW 2.43 trillion ($1.80 billion) in profit, as well, and while that's a third of what it earned in the same period of 2022 — KRW 10.85 trillion or $7.6 billion — that figure still much better than the $527 million profit it reported for the second quarter. 

For its mobile and network business, in particular, it reported KRW 30 trillion ($22.17 billion) in consolidated revenue, as well as KRW 3.30 trillion ($2.44 billion) in operating profit. There was a higher demand in the third quarter compared to the second, Samsung said, thanks to the global smartphone market showing signs of recovery. If you'll recall, the company mostly blamed its drop in revenue for the second quarter to a decline in smartphone shipments. For this period, it says the Galaxy S23 series has maintained "solid sales momentum," while its foldables, tablets and wearables recorded strong sales. It expects smartphones sales to grow next quarter due to the holiday season and for the market to bounce back next year "as consumer sentiment stabilizes in anticipation of a global economic recovery."

Another segment that did well in the third quarter is Samsung's mobile panel business, which "reported a significant increase in earnings on the back of new flagship model releases by major customers." As Bloomberg notes, those new flagship model releases could include Apple's iPhone 15. Samsung intends to continue focusing on OLED panels for its mobile display business and plans to establish a supply chain catering to the augmented and virtual reality market. 

Finally, the company's semiconductor division posted KRW 3.75 trillion ($2.77 billion) in operating losses for the quarter, which is slightly better than its KRW 4.36 trillion ($3.23 billion) losses in the previous one. Samsung expects the demand for PCs and mobile devices to improve next period, and it's anticipating strong server demand from cloud service providers thanks to generative AI applications. 

Apple’s buy now, pay later system is finally available to all customers in the US after its soft launch back in March. To pay later and begin making equal payments over the course of six weeks, you must be set up on Apple Pay with an eligible debit card.

There is a limit, though. Pay Later only works for purchases that cost between $75 and $1,000 made on iPhone or iPad through a vendor that accepts Apple Pay. The company says during the repayment period you won’t accumulate interest and there are no late fees. However, in the fineprint, Apple says your bank could charge you extra fees “if your debit card account contains insufficient funds to make loan repayments.” After opting to finance a purchase during checkout, your Pay Later loan and payment history gets shared with credit bureaus.

In a video tutorial, Apple breaks down how to start. Simply choose between paying in full through Apple Pay or paying later. If you choose the latter, the tool will automatically tell you how much each payment will cost every two weeks, which is subject to approval. You need to confirm your personal information and ‘Agree & Apply’ before beginning a repayment program.

Apple

Once you start making payments, Apple makes it easy to track your progress. Your total remaining balance, upcoming and previous payments are all laid out through the Wallet app. Here, you can set up autopay and change the bank or debit card you're sourcing your payments from and if you’d like to, tap to pay early. Apple also integrated the calendar tool with the Pay Later feature so that an iPhone user can see everything they owe in a single place to keep tabs on progress.

The introduction of Pay Later puts Apple in competition with other digital repayment apps like Afterpay, Klarna and Affirm, which partnered with big tech giants like Amazon to expand their services. Roughly three in four US iPhone users have activated Apple Pay, according to the Consumer Financial Protection Bureau. The popularity of the company's tap-to-pay tool among iPhone users could help it gain a foothold in this new market.

Snapchat grew to more than 400 million users, Snap announced in its third-quarter earnings report. The app added nine million new users in the last quarter, bringing its total daily active users (DAUs) to 406 million, an increase of 12 percent from last year, the company said.

The milestone comes a little more than a year after Snap laid off about 20 percent of its workforce in an effort to cut costs as advertising revenue slowed. Those cuts, along with new product features, are apparently starting to pay off.

The company reported $1.19 billion in revenue for the quarter, an increase of 5 percent from last year and better than Wall Street analysts expected, according to CNBC. In a statement, Snap pointed to its subscription service, Snapchat+, as a key part of its strategy to grow its non-advertising sources of revenue. Snap announced last month that Snapchat+, which offers users exclusive and experimental features for $4 a month, had reached five million subscribers.

Generative AI has also been a bright spot for the company. The company’s MyAI chatbot, which rolled out to all Snapchat users in April, has reached more than 200 million people who have collectively exchanged more than 20 billion messages with the OpenAI-powered chatbot. Snap said it believes the assistant is one of the “most used AI chatbots available today.”

Developing...

GM announced on Tuesday that it’s delaying production of the Equinox EV, Silverado EV and GMC Sierra EV. Electrek reported on the comments from the automaker’s earnings call, citing a desire to “protect” GM’s pricing while adjusting to shifting EV demand. The company didn’t commit to a specific timeline to resume production, only saying the delay would last “a few months.”

“We are also moderating the acceleration of EV production in North America to protect our pricing, adjust to slower near-term growth in demand, and implement engineering efficiency and other improvements that will make our vehicles less expensive to produce, and more profitable,” GM CEO Mary Barra said in the company’s Q3 earnings call Tuesday.

Barra said the changes “will make our vehicles less expensive to produce, and more profitable” in the long run. She warned that the EV delays would affect Ultium-based models, including the Equinox EV, Silverado EV RST and GMC Sierra EV.

The move comes a week after GM announced it would delay EV truck production (Silverado EV and GMC Sierra EV) at its Orion assembly plant in Michigan until late 2025. GM spokesperson Kevin Kelley said the move was designed to “better manage capital investment while aligning with evolving EV demand.”

The United Auto Workers strike began in September and is the elephant in the room amid GM’s production shakeup. Citing uncertain labor costs related to the strike, the automaker also withdrew its full-year financial guidance. It expects to provide more clarity for investors once new union contracts are signed. “Accepting unsustainably high [labor] costs would put our future and GM team member jobs at risk, and jeopardizing our future is something I will not do,” Barra said.

Gemini Trust Company, a cryptocurrency exchange helmed by the infamous Cameron Winklevoss and Tyler Winklevoss, just got hit with a lawsuit alleging that it defrauded investors. The suit was brought forth by New York Attorney General Letitia James, the same AG currently prosecuting former president Donald Trump on sweeping charges of fraud.

This isn’t solely directed at Gemini, as cryptocurrency firms Digital Currency Group (DGC) and Genesis Global Capital are also named in the suit. All told, the civil lawsuit alleges that the three companies collectively defrauded 230,000 investors to the tune of more than $1 billion, as reported by Axios. The AG also charged former Genesis CEO Soichiro "Michael" Moro and DCG founder and chief Barry Silbert for trying to conceal the true financial condition of its lending unit.

As for the Winklevoss twins and Gemini, the suit alleges that the digital asset platform didn’t properly disclose the financials of Genesis before partnering with the crypto exchange to form an investment platform called Gemini Earn in 2021. The suit alleges that Gemini announced that Genesis was a “trusted company” despite internal risk analyses to the contrary.

It goes on to allege that in February 2022, Gemini revised its estimate of Genesis’ credit rating, lowering it from the investment-grade BBB to the junk-grade CCC, all without publicly revealing this change to investors and continuing to advertise correlated investments as “low-risk.” Additionally, it’s been alleged that many of the company’s risk assessors took their own money out of Gemini Earn without informing investors.

There are even allegations that more than 60 percent of Genesis’ financials were tied to Sam Bankman-Fried’s disgraced hedge fund Alameda Research. To that end, the connection between Gemini and Genesis is eerily similar to the ties between FTX and Alameda Research, and we all know what happened there.

Gemini took to the preferred social media platform for crypto-enthusiasts, X/Twitter, to refute the allegations, writing that it was simply the victim of fraud on the part of Genesis and DCG. It’s notable the firm didn’t comment on what they knew about Genesis’s poor financial condition and when they knew it, placing the onus of blame on Genesis CEO Moro and DCG founder Silbert.

“Blaming a victim for being defrauded and lied to makes no sense and we look forward to defending ourselves against this inconsistent position,” Gemini wrote.

For his part, DCG founder Barry Silbert penned a statement that completely refuted his side of the allegations, writing that he is “shocked by the baseless allegations in the Attorney General’s complaint” going on to say that he intends to “fight these claims in court.” Cameron Winklevoss hasn’t issued his own statement, but did retweet Gemini’s post on the matter.

Genesis ceased all cryptocurrency trading last month, as reported by CoinDesk, after filing for bankruptcy protection back in January. Today’s lawsuit seeks to recoup the $1 billion in losses and hopes to ban all three companies from the financial industry in New York.

Netflix announced price hikes on two of its plans today. As the company relayed its quarterly earnings, tit said it’s increasing rates for its Basic and Premium plans. The Basic plan, which Netflix killed earlier this year, moves from $10 to $12 for grandfathered customers, while Premium rises from $20 to $23.

Netflix said its ad-supported and Standard plans will remain the same at $7 and $15.49, respectively. Before Wednesday’s news, the company last raised prices in early 2022.

“While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix wrote in its earnings report. “Our starting price is extremely competitive with other streamers and at $6.99 per month in the US, for example, it’s much less than the average price of a single movie ticket.”

The company’s move to limit password sharing appears to have paid off. Paid memberships are up to 247.15 million, a significant 10 percent annual increase. Paid net subscriber additions were 8.76 million for Q3, the biggest increase of the last year. In addition, Netflix’s advertising-supported plan seems to be off to the hot start it expected as it accounted for 30 percent of all new sign-ups in countries where it’s available.

Netflix has shifted its strategy as it adjusts from its peak-pandemic highs while facing increased competition. In addition to its price hikes, ad-supported plan and password-sharing crackdowns, the streaming service is even taking the peculiar step of moving into retail.

Netflix is hardly alone in raising prices. Disney+, Hulu and Max have all issued increases in the past 12 months. That isn’t limited to direct rivals: Xbox Game Pass, PlayStation Plus, Spotify, YouTube Premium and Apple Music all jacked up their subscription costs in the last year.

This is a developing story. Please check back for updates.

Netflix announced price hikes on two of its plans today. As the company relayed its quarterly earnings, tit said it’s increasing rates for its Basic and Premium plans. The Basic plan, which Netflix killed earlier this year, moves from $10 to $12 for grandfathered customers, while Premium rises from $20 to $23.

Netflix said its ad-supported and Standard plans will remain the same at $7 and $15.49, respectively.

“While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more,” Netflix wrote in its earnings report. “Our starting price is extremely competitive with other streamers and at $6.99 per month in the US, for example, it’s much less than the average price of a single movie ticket.”

This is a developing story. Please check back for updates.

It looks like the Internal Revenue Service (IRS) truly was working on a free TurboTax alternative like earlier reports had claimed. The US tax authority has announced that it will start pilot testing its new Direct File program for the 2024 filing season, though it will initially be available for select taxpayers in 13 states only. During its pilot period, Direct File will only cover individual federal tax returns and won't have the capability to prepare people's state returns. That's why 9 out of the 13 states testing it — namely Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming — don't levy state income taxes. 

Arizona, California, Massachusetts and New York, the other four states in the list, worked with the IRS to integrate their state taxes into the Direct File system for 2024. The IRS says it invited all states to join the pilot program, but not all of them were in a position to participate "at this time." In addition to being only available in certain locations, Direct File will only be accessible by people with "relatively simple returns" at the beginning. It will cover W-2 wages and tax credits like the Earned Income Tax Credit and the Child Tax Credit, for instance, but it will not cover self-employment income and itemized deductions. However, the agency is still finalizing the tax scope for the pilot, so it could still change over the coming months. 

Based on the screenshots the IRS shared with The Washington Post, taxpayers will only have to answer a questionnaire to be able to file their taxes directly, simplifying the process without having to pay for a third-party service. An IRS official told the publication that select eligible taxpayers in the aforementioned states will start getting invitations to use the service sometime around mid-February next year. The agency says it will begin with a small group of taxpayers before expanding access to more and more people as the filing season for the 2023 federal tax return progresses.

"This is a critical step forward for this innovative effort that will test the feasibility of providing taxpayers a new option to file their returns for free directly with the IRS," IRS Commissioner Danny Werfel said in a statement. "In this limited pilot for 2024, we'll be working closely with the states that have agreed to participate in an important test run of the state integration. This will help us gather important information about the future direction of the Direct File program."

The IRS is hoping to gather data and feedback during the pilot to be able to analyze how effective Direct File is. It's also hoping to identify areas of improvement for a "potential large-scale launch in the future."