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FTX founder Sam Bankman-Fried ordered to forfeit $11bn

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Family of Sam Bankman-Fried expresses heartbreak as sentencing unfolds.

  • Sam Bankman-Fried, FTX founder, sentenced to 25 years for cryptocurrency fraud.

  • Bankman-Fried ordered to forfeit $11 billion after collapse of FTX exchange and Alameda Research hedge fund.

  • Judge expresses concern over lack of remorse, sentences Bankman-Fried despite defense arguments, setting a significant precedent.

Sam Bankman-Fried, the founder of FTX, has been sentenced to 25 years in prison for orchestrating a massive fraud scheme that led to the collapse of his cryptocurrency exchange and a related hedge fund, Alameda Research.

The sentencing, handed down in Manhattan federal court, represents a significant legal blow to Bankman-Fried, who had once been heralded as a rising star in the cryptocurrency industry.

Sam Bankman-Fried: key moments leading up to FTX founder’s trial …

Despite the prosecution’s push for a lengthier sentence of 40 to 50 years, Judge Lewis Kaplan settled on a 25-year term, citing concerns over Bankman-Fried’s potential to commit further harm.

“There is a risk that this man will be in position to do something very bad in the future,” remarked Judge Kaplan, underscoring the severity of the charges against the 32-year-old.

As part of the sentencing, Bankman-Fried has been ordered to forfeit a staggering $11 billion to the U.S. government.

Lack or remorse

Throughout the proceedings, Judge Kaplan expressed dismay over Bankman-Fried’s lack of remorse and evasive testimony.

“I have never seen a performance like Bankman-Fried’s trial testimony in my 30 years on the federal bench,” Kaplan remarked, noting the absence of any acknowledgment of wrongdoing from the defendant.

Bankman-Fried, once regarded as a prominent figure in the cryptocurrency community, faced a barrage of accusations related to securities fraud and conspiracy.

Despite his attempts to portray the losses incurred by customers as a result of a “liquidity crisis” or mismanagement, jurors remained unconvinced, convicting him on seven criminal counts.

Assistant U.S. Attorney Nicolas Roos, arguing for a harsher sentence, dismissed Bankman-Fried’s defense, asserting that FTX’s collapse stemmed from the “theft” of billions of dollars of customer money, rather than external factors.

Roos said the profound impact of the loss on individuals worldwide, describing it as a betrayal of trust with far-reaching consequences.

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

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U.S. small business confidence hits 3-1/2-year peak

US small business confidence hits 3.5-year high post-election, driven by optimism for economy and hiring plans.

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U.S. small-business confidence reached its highest point in nearly 3-1/2 years in November, according to the National Federation of Independent Business (NFIB).

The NFIB’s Small Business Optimism Index increased by 8.0 points to 101.7, marking the highest level since June 2021.

This surge followed the recent elections, which saw Donald Trump winning the presidential race and the Republican Party gaining control of Congress.

Small business owners, who typically lean Republican, showed increased confidence, a trend anticipated by economists.

Other sentiment surveys also reported improvements in consumer confidence post-election.

Economic improvement

The percentage of small business owners expecting economic improvement rose significantly, indicating a shift in outlook.

More owners believe now is a good time to expand their business, with expectations for higher sales growth increasing. Concerns about inflation slightly lessened, as fewer owners cited it as their primary issue.

Additionally, the uncertainty index for small businesses dropped, reflecting increased stability in economic expectations.

Despite ongoing labor shortages in various sectors, the number of businesses planning to hire rose to the highest level in a year.

Compensation for employees saw an uptick; 32% of owners reported increases, while a notable percentage plans further raises in the coming months.

 

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Inflation report tests stock rally before Fed meeting

**Inflation report next week could impact stock rally; Fed rate cuts anticipated amid strong job growth and resilient economy.**

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An upcoming inflation report will assess the strength of the U.S. stock market rally and influence the Federal Reserve’s rate cut strategy.

The S&P 500 has recorded its third consecutive weekly gain, increasing over 27% year-to-date.

This upward momentum in equities is influenced by expectations of additional Fed interest rate cuts amid a resilient economy.

Friday’s employment report indicated stronger than expected job growth, reinforcing this positive outlook. However, this data is not expected to change the Fed’s rate plans for its upcoming December meeting.

The consumer price index data due on Wednesday may alter this optimistic sentiment if inflation exceeds expectations, posing risks for well-performing stocks.

Experts note that if inflation rates are high, it could create uncertainty for investors before the Fed meeting.

Following the recent jobs report, the probability of the Fed cutting rates has increased, with nearly a 90% chance predicted for a 25 basis point cut.

The consumer price index is expected to rise by 2.7% over the past year.

If CPI results are higher than expected, it might prompt a cautious approach on future cuts, affecting outlooks for 2025.

Additionally, inflation concerns are heightened by the potential introduction of tariffs by President-elect Donald Trump.

Despite these factors, stock prices continue to rise, although there are warning signs of overly optimistic sentiment in the market.

Some analysts maintain a positive view on stocks heading into the year-end, citing a reduction in concerns surrounding the economy and interest rates.

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Stocks on the way to achieve three consecutive years of gains

S&P 500’s strong 2024 raises hopes, but concerns linger over AI sustainability and economic headwinds affecting future gains.

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The S&P 500 has risen 28% in 2024, poised for consecutive annual gains of over 20%.

Major banks forecast more modest returns for 2025, projecting the index reaching 6500, a 6.7% rise from approximately 6090.

Barclays has a more optimistic target of 6600, with Bank of America and Deutsche Bank expecting 6666 and 7000, respectively.

President-elect Donald Trump’s policies are seen as potentially beneficial for stocks, though high interest rates and geopolitical issues pose risks.

Investors remain cautious about the sustainability of the rally.

Economic conditions

Upcoming inflation data will be crucial for assessing economic conditions before the Federal Reserve’s anticipated rate cut in December.

Increasingly, small-cap stocks are joining the rally, with the Russell 2000 index nearing record highs.

More than 220 S&P stocks have hit 52-week highs recently, which indicates broader market strength, making it less susceptible to downturns.

The early market gains were largely driven by major tech stocks, which continue to perform well amid various challenges.

Long-term growth expectations, however, appear dim, with forecasts suggesting limited gains over the next decade.

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