.— the collapse of ftx.x. thank you very much. erin — the collapse of ftx. thank you very much. erin del— the collapse of ftx. thank you very much, erin del moral, _ the collapse of ftx. thank you very much, erin del moral, you - the collapse of ftx. thank you very much, erin del moral, you were - the collapse of ftx. thank you very much, erin del moral, you were in. much, erin del moral, you were in court yesterday and i know you will follow that throughout the day as we get further evidence. the financial crime agency in india has arrested a chinese national. he works for the company vivo, which has denied any wrongdoing. we spoke to a colleague earlier who has more from mumbai. the to a colleague earlier who has more from mumbai-— to a colleague earlier who has more from mumbai. the arrest of the vivo emlo ee from mumbai. the arrest of the vivo employee is — from mumbai. the arrest of the vivo employee is just _ from mumbai. the arrest of the vivo employee is just the _ from mumbai. the arrest of the vivo

but when ftx i think so. but when ftx collapsed _ think so. but when ftx collapsed in _ think so.ember, think so. but when ftx - collapsed in september, more than $8 million in customer funds went missing. mr bankman—fried is pleading not guilty, and this is what he told the bbcjust before his arrest. told the bbc 'ust before his arrest. ~ , ., ., arrest. where you are incompetent - arrest. where you are incompetent or - arrest. where you are j incompetent or where arrest. where you are - incompetent or where you fraudulent? i incompetent or where you fraudulent?— incompetent or where you fraudulent? ., ~ ., , fraudulent? i did not knowingly commit fraud, _ fraudulent? i did not knowingly commit fraud, i _ fraudulent? i did not knowingly commit fraud, i don't _ fraudulent? i did not knowingly commit fraud, i don't think - fraudulent? i did not knowingly commit fraud, i don't think i i commit fraud, i don't think i committed fraud, i didn't want any of— committed fraud, ididn't want any of this— committed fraud, i didn't want any of this to happen.- any of this to happen. daniel cu

they thought ftx had that ability.ght it was the single most important institution in the world. >> as he began accumulating billions as if the they were pokemon cards, bankman-fried began attracting something else he wasn't accustomed to -- attention. >> he never goes on tv and he goes on tv with his cargo shorts and messy hair and playing video games while he's on the air. >> wait, he's playing games on the air? >> you can see his eyes going black and forth because he's trying to win the video game the same time he's on the air. >> whether it was his smarts, his indifference to appearance or vast wealth and the beautiful people found him irresistible. >> as his net worth go up so does his social capital. you write about a zoom meeting. >> he said i have to do a zoom. what is it? he says, it is this person named anna wintour. >> he had no idea who she was. >> i sat off to one side where she couldn't see me, and i watched this. >> what does ana wintour want to do with sam? >> exactly. he's the worst dressed person in a

ftx did not have the funds to meet them.scue attempt, ftx reached a deal with binance to sell itself but binance backed out. there was a lot of funds missing. i couldn't trust any of the information. >> by november 11, it was over. ftx file for bankruptcy and sam bankman-fried resigned as ceo. that same month, he apologized at a public event. >> i made a lot of mistakes, things i would give anything to do over again. i never tried to commit fraud on anyone. >> a few weeks later, he was indicted, accused of misappropriating billions of dollars at the cryptocurrency exchange. >> it's fair to say that by anyone's measure, it's one of the biggest financial frauds in history. caroline: a great breakdown from kailey leinz. what has it meant for institutional adoption for the hope of crypto more broadly? let's talk about it with matt hogan. you've got your own news to bring to the table about offerings to institutions. just focus on the trial start today. will this be a cathartic moment for the industry or more pain before the sun

but when ftx collapsed in september, more than $8 million in customer funds went missing.ges including wire fraud, security fraud and money—laundering. mr bankman—fried is pleading not guilty, and this is what he told the bbc just before his arrest. were you are incompetent or were you fraudulent? i did not knowingly commit fraud, i don't think i committed fraud, i didn't want any of this to happen. danya perry is a former federal prosecutor and she says the garment has the edge. the government has the benefit of several corroborating witnesses, who were co—founders along with mr bankman—fried, and who are classic insiders. if sam bankman—fried is found guilty of all seven charges, he could spend decades in prison, and this case has wider implications, forcing the debate over how crypto is regulated back into the spotlight. erin delmore, bbc news in new york. to india now where the world bank has retained its growth forecast for the country at more than 6% this year. the organisation says it will continue to grow rapidly over the next three years as well but there are a nu

but when ftx collapsed _ into crypto. i don't think so. but when ftx collapsed in _ into crypto.ollapsed in november, more than $8 billion went missing. sam bankman—fried is facing charges including wire fraud, securities fraud and money—laundering. he has pleaded not guilty and this is what he told the bbcjust before his arrest. he told the bbc 'ust before his arrest. ~ , ., _, , ., arrest. when you incompetent or where you _ arrest. when you incompetent or where you fraudulent? _ arrest. when you incompetent or where you fraudulent? i - arrest. when you incompetent or where you fraudulent? i didn't i where you fraudulent? i didn't knowingly _ where you fraudulent? i didn't knowingly commit _ where you fraudulent? i didn't knowingly commit fraud, - where you fraudulent? i didn't knowingly commit fraud, i - where you fraudulent? i didn't i knowingly commit fraud, i don't think i committed fraud, i didn't want any of this to happen. aha, thinki committed fraud, i didn't want any of this to happen. a former federal prosecutor _ want any of this to happen. a former federal prosecuto

ftx did not have the funds to meet them.a rescue attempt, ftx reach a deal with binance to sell itself. >> there was a lot of funds missing. to the tune of double digit billions. i couldn't trust any information. >> by november 11, it was over. ftx filed for bankruptcy and bankman-fried resigned as ceo. that month, he apologized and a public event. >> i've made a lot of mistakes. things that i would give anything to be able to do over again. i did have ever tried to commit fraud on anyone. >> a few weeks later, sam bankman-fried was indicted accused of misappropriating billions of dollars at the crypto exchange. >> one of the biggest financial frauds in american history. kriti: kailey leinz with the story of ftx. sam bankman-fried the saga so far. coming up, the reserve bank of australia keeps rates unchanged for the fourth month, but warns further tightening could be required. more analysis next. this is bloomberg. ♪ kriti: good morning and welcome back to "daybreak: europe". i'm kriti gupta in london. standing pat. the aus

the new threat within his own party that could throw the house in disarray -- the >>> the head of ftx, sam ba bankman-fried. >>> and ready to laugh again, how they handled the gap during the writers strike >>> and the nobel prize winners were so surprised by the news they thought it was a prank at first. "early today" starts right now >>> good morning, and thanks for joining us, i'm jessica layton >> i'm frances rivera. we begin with breaking news in new york after days of frantic searching, a 9-year-old girl has been found alive. [ applause ] charlotte sena's family celebrated the news that their little girl would be coming home nearly 48 hours after she vanished from a state park >> a ransom note led them to charlotte. it was left around 4:30 in the morning in the mailbox of the little girl's home a finger print on the note matched the fenger prints from the suspect taken from a dwi arrest in 1999 officers found that suspect inside a camper behind his mom's house. after taking him into custody, they also found charlotte. >> little girl was found in the cabinet, covered she was rescu

funds alleging ftx directed him to build that backdoor allowing to steal ftx customer money has pled guilty to fraud testifying in exchange for leniency we heard in the college room mat of ftx, he painted a purchase of very messy operation, he revealing he discovered alameda owed 8 billion dollars in customer funds informed of concerns before collapse ftx acknowledged he knew said we are not bulletproof anymore lived in 35-million-dollar bahama penthouse shared messages he revealing crypto king said residence was paid for with company money underscoring the narrative that they were living high live, to undermine the testimony as hearsay biggest challenge may mountain of evidence, in a clear manner legal experts tell us one of the biggest down tulsa is confusing jury, wang's testimony will continue today, and painting a picture as sole person in charge will go directly against did he have claim he didn't know what was going on, back to you maria: that is unbelievable that they had an 8-billion-dollar number, that they owed to ftx. ftx knew about it right. >> i mean trying to say he di

when ftx collapsed in _ crypto. i don't think so. when ftx collapsed in november, i crypto. billion in customer funds went missing. he is facing charges including wyatt roy, securities fraud and money laundering. he has pleaded not guilty and this is what he told the bbcjust before his arrest. were you incompetent or were you fortunate? t were you incompetent or were you fortunate?— you fortunate? i don't think i committed — you fortunate? i don't think i committed fraud. _ you fortunate? i don't think i committed fraud. i _ you fortunate? i don't think i committed fraud. i do - you fortunate? i don't think i committed fraud. i do not i you fortunate? i don't think i i committed fraud. i do not want any of— committed fraud. i do not want any of this— committed fraud. i do not want any of this to happen. she committed fraud. i do not want any of this to happen.— any of this to happen. she says the government _ any of this to happen. she says the government has _ any of this to happen. she says the government has the - any of this to happen. she says the government has the edg

both saw a swift rise with ftx becoming the second largest crypto exchange in the world.arly a year ago. customers lost billions of dollars. mr bankman—fried was arrested in the bahamas and extradited to the us. now, he's on trial here in manhattan, charged with stealing the money customers deposited on ftx in order to prop up the investment fund and fund his lavish lifestyle. mr bankman—fried denies those charges but faces decades in prison if he's found guilty. what you have to say to sam? his trial has been the talk of new york as former colleagues, including his ex—girlfriend, have appeared, describing not just their plush communal living in the bahamas but also how mr bankman—fried directed them to defraud customers and investors. but now, mr bankman—fried is telling his side of the story. it's a step defence lawyers usually advise against because it opens up the accused to cross—examination. but those who've met mr bankman—fried i think testifying on his own behalf is just the sort of risky move he relishes. sam's a gambler, you know? sam has always had a high risk

the next chapter in ftx is set to begin tomorrow.y selection in the sam bankman-fried trial is set to start. we have kate rooney with more on what they are saying as the story continues to unfold. >> good morning, frank. we spoke with customers who lost millions on ftx and asked them to share their message ahead of the trial. >> what is my message to sbf if i could talk to him now? i don't know if it would get through to him, but i believe the worst thing he has done is the suffering he caused to millions of victims. >> i would tell sam it is great you are saying you want to make sure other customers are right. do the right thing. serve your time and pay your penalty. do the best for your users. >> my advice is figure out what you can do to help all those people who lost their life savings in ftx. i don't know how you will do it or what you will do, but get it done. >> if i had a chance to confront sam face-to-face, i would be curious to know what he is actually trying to do. were you trying to do good or were you just a really bad p

what you saw pre-ftx was everyone and their brother and sister was starting a crypto company.has been filtered out, people starting crypto companies are only starting them because they see a problem to solve and have a passion for the industry versus they just see a casino that looks fine. there is a filter in a good way for those who are starting companies and people are using crypto applications but if we are being honest, the only application that is achieved -- has achieved any kind of market fit to scale is for, and a theater -- and a theory stablecoins -- is bitcoin and ethereum stablecoins. caroline: morgan, let's move away from that to the regulatory environment with which we are in because you do have a ftc chair that seems adamant to police whether it is after these companies are built are as they are being built and i am interested as to whether that is an environment that people want to find product market fit. >> it is a environment that people want to find product market fit in if there is a market emphasis to be built but it is a thorn for sure. an issue is they

that was ftx's sister fund. al immediate e da.s that ftx customer assets, when deposited in the early days, were actually sent to annal immediate e da bank account without the customers' knowledge. when you're proving out a fraud charge, that lack of disclosure is very key. the big reveal today from the prosecution's examination is while fixing a bug, this individual was a coder at ftx, he found that alameda owed ftx $8 billion in customer funds. sbf was informed of all of this messiness early on, and he even acknowledged to the witness that ftx was, quote, not bulletproof anymore. the witness asserted he quit because he discovered alameda was using ftx customer money to pay loans. the defense had a chance to cross-examine this witness. theta teased him in questioning that he heard secondhand through several employees that they were using ftx funds, so that tarts to bring about doubt potentially in the jury's mind and that he was also only testifying you were an immunity agreement because he was worried that the code that he wrote

doesn't look like coin base, in ftx there, either.l merge in a foreign country, it's a shame for the u.s., this innovation will probably end up in abu dhabi. the new exchange backed by millions there. transparent ownership. what a shame that we didn't get there first. that's the way i look at it. >> bill: a lot of people look at crypto now and think it is good in theory and it is good for some people who like the financial system across the world to work. when you are encountering dozens of different countries and individual laws it is a hard thing to make happen. here the star witness now. sam bankman-fried. star witness is caroline ellison. why is she is star witness? >> caroline ran alameda, a classic story does not engage the complexity of crypto at all. this is a garden variety fraud charge with a classic he said/she said. now everybody knows about the romance between them but she basically was running the hedge fund alameda and the allegation is that these funds were misappropriated between ftx platform, alameda and perhaps sam

the former boss of ftx testifies on his own behalf. we have the latest.fried, known better by spf, has testified in his own defence. faces several charges including defrauding his customers as

and other top ftx employees who talked about the way ftx was managed which has come up in the bankruptcyhigh heef level leadership other than this insular group in the bahamas. >> as far as the trial set to begin this week, what are the key witnesses you're watching and testimony? >> so, trial begins tomorrow. jury selection. and then we'll get a list of who's testifying. caroline ellison, ceo of alameda, is the one to watch. she was his top executive ceo and his former girlfriend. that was also at the center of this with what the judge said was witness tampering. he leaked documents about their relationship and her time at alameda. there is a ton of interest. that's going to be a packed courtroom when she testifies. >> not to mention whether or not we hear from him or the parents. >> yeah, absolutely. >> kate, good to have you here to help us understand what's going on. >>> another event set to begin this week is in the media space, talks to decide the fate of hulu, between disney and our parent company, comcast r kicking off. julia boorstin has more on what's in store for that. hey, ju

the 31-year-old founder of the cryptocurrency ftx has pled not guilty to charges.t should we make of bankman-fried from wall street trader to billionaire and disgraced, the arthor on "the cristo titan," the rise and fall of a new tycoon. >> michael, welcome back to the show. >> pleasure to be here, fareed. >> let me ask you something top ginn with, after doing all of this, did you figure out what is cryptocurrency? [ laughter ] >> and why does it exist? [ laughter ] >> well, so -- this is a very good question. to start with, what's curious about the story is you don't really need to know and he didn't need to know. he saw it -- it -- cryptocurrency is in the eye of the beholder. >> yeah. >> he almost says that. >> in that bloomberg interview, what he sees when he first walks in is an in, fert market and it doesn't matter if it's crypto currency or tulip bulbs and it's priced one way in one place and another way another place and you arbitrage and he didn't care about it. to answer your question, before i started this book, i used to kick around crypto and think is

when ftx investors tried to cash out they couldn't. bankman-fried was asked about the ftx collapse at a conference last november. >> were you truthful with us today? >> i -- i was as truthful as i -- as, you know, i'm knowledgeable to be. there's -- there are some things i wish i knew more about. >> reporter: bankman-fried has admitted making poor decisions. his lawyers are expected to argue he did not deliberately steal anyone's money. tuesday the judge told bankman-fried it would ultimately be up to him whether he testifies in his own defense. the trial is expected to last up to six weeks. michael george, cbs news. >>> california's newest senator is officially on the job. former union leader laphonza butler was sworn in yesterday by vice president kamala harris. she's just the third black woman to ever serve in the u.s. senate. butler was appointed by the governor following dianne feinstein's death last week. it's not clear if butler will run for the seat in next year's race. >>> meanwhile, the body of senator feinstein will lie in s

. >>> still to come, ftx founder sam bankman-fried is back on the stand.re live at the uroucothse with the very latest after this quick break. i stand by these promises. as a fiduciary, i promise to be the financial steward that you and your family need. i promise to put your long-term financial well-being above any short term transaction. everyone has a big picture. my job is to help you invest in yours. [announcer] charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com >>> ftx founder sam bankman-fried is back on the stand testifying in his own fraud trial. kate rooney is outside the courthouse in manhattan with the very latest in our "techcheck." >> reporter: good morning. just behind me they started with the defense. they just started cross-examination from the government's side. that kicked off in the last ten minutes or so. that's going to likely come with much tougher questions and some curveballs for sam bankman-fried

the government's first witness was a former ftx customer who deposited £110,000 on the exchange.s expected to call on people who lost money when ftx went bankrupt, as well as at least three former executives at ftx and alameda, who were also personally close with mr bankman—fried. the british car market grew in september, according to new figures. the society of motor manufacturers and traders says it's up 21% on the same period last year. but sales of electric vehicles fell sharply, pulling the share of ev sales down to 16.6% of the overall market. let's cross live now to mark tisshaw, who's the editor of autocar. mark, explained this, because we were told the future is electric, but these figures suggest consumers don't really like what are seeing. absolutely. electric vehicles, they are pasty early adopter phase and into the mainstream, but as a mainstream car buyer there is no real incentive to buy one at the moment. as for the majority, there something more expected —— expensive than petrol cars. find something more expected -- expensive than petrol cam-— than petrol cars. an

ftx is dope. >> reporter: bankman-fried is charged with illegally taking billions in ftx customer fundsinvestments, buy lavish real estate, and donate to political candidates at a companion hedge fund, alameda research. on the witness stand bankman-fried denied it. did you defraud anyone, his attorney asked? no, i did not, bankman-fried answered. did you take customer funds? no. prosecutors showed the jury part of an interview bankman-fried did for "gma" when george stephanopoulos asked him whether ftx customers were aware alameda was using their money. >> there existed a lending facility on ftx, and i think that's probably covered -- i don't remember exactly where but somewhere else in the terms of service. >> but they'd have to approve it of that. they're saying they didn't approve of it. they're saying you approved of it. >> reporter: keurig -- during trial, another witness testified no part of ftx's terms of service warned customers their money could be used as bankman-fried's personal piggy bank as prosecutors allege. during his testimony he did concede he made mistake, a number of

all-in, $8 billion of ftx money that went missing. bankman-fried pleaded not guilty to all charges, but if convicted by a jury, he could end up in prison for more than 100 years. frank. >> what else do we know about the trial? will sam bankman-fried testify? do we expect other witnesses? >> we are looking at a six-week trial with prosecutors expected to take a month to make their case. we don't know if sam bankman-fried will testify. the roster is expected to include the top deputies at his inner circle. that includes his former girlfriend caroline ellison and his best friend from math camp who co-founded ftx. they have been cooperating with the u.s. attorney's office for months in manhattan. as for the legal strategy, his lawyers hinted at advice of counsel defense. he was following the guidance of lawyers and did not realize what he was doing was illegal. worth noting, frank, this is the first of two separate criminal cases against sam bankman-fried. a second trial is slated for march of 2024 and that deals with additional charges a

>> reporter: the 31-year-old founded and ran ftx, endorsed by several a-list celebrities which at its peak was one of the world's largest cryptocurrency exchanges. but the company imploded late last year. today the government describing that empire as a house of cards prosecutors alleging bankman-fried funneled billions of customer funds from ftx and used them to buy penthouses in the bahamas, make political donations, and bail out bad bets at his hedge fund. prosecutors told the jury he knowingly lied to customers and tried to cover up the scheme. >> prosecutors know they probably won't be able to explain cryptocurrency completely to this jury so instead, they're going to distill it down to a simple case of fraud >> reporter: bankman-fried has pleaded not guilty to seven criminal counts of fraud and conspiracy his lawyers today painted him as a hard-working nerd who was acting in good faith and made what he thought were fair business decisions, adding that it's not a crime to run a company into bankruptcy or to pay tom brady to be in your commercials. >> i didn't ever try to commit f

ftx was run out. bahamas. binance says it has no headquarters. so we are really dealing with the wild west of unregulated finance. and as regulators and law enforcement officials sort of are playing catch-up, and i think doing a decent job at this point, we will see more of to come. another guy i interview in the book, his fraud trial is set for next year. they have sued binance. i think there is more to come. >> i have to ask because we were talking about beforehand my frustration with michael lewis just happening to be profiling this individual in the middle of the biggest financial collapse. his past work, always extraordinary, it's been really interesting as his book about sam bankman-fried comes out. the critiques of it, how people are viewing it. you wrote a review of this book. you read the whole thing. what's your take on it? >> it's interesting. michael lewis spent a year with sam bankman-fried and seems to believe he is innocent or at least the charges are flawed. i spent one hour with sam last year and i thought sam bankman-fried was f

the collapse of ftx. the qr code on the screen right now to watch it or go to cnbc.com. >>> coming up, we have the morning upgrades and downgrades and shares of one fintech player popping on love. >>> and taylor swift breaking records in concerts and sporting events and now the silver screen. tickets for the film $100 million after setting the single day sales record which beats "spider-man's" previous record. >>> and los angeles uses a.i. to predict and prevent hom homelessness. >>> and a.i. can get you into the past. a social media trend is prompting people to post a.i. generated yearbook photos which are separated into categories like best dressed and most athletic. more "worldwide exchange" coming up after this break. stay with us. you know when you have those moments? that time to reflect. to be like wow... what did i do to get here? (city ambient noise) right. work. you worked hard and it's time for a bank that'll work hard for you. everbank brings security and a guarantee. that you'll earn a yield

ftxs the company's 31 year old founder showed up in a manhattan courthouse today. sam bankman-fried, a bay area native and one time rising star, is now facing a slew of fraud charges after prosecutors say he cheated investors out of billions of dollars. joining us live now to talk about it is michael zweiback, who is a former federal prosecutor. michael, thanks for your time. thank you. just give us a brief overview of the allegations as well. >> the allegations are that mr. bankman-fried used investor money for his own purposes, including political donations, the purchases of multimillion dollar properties all around the world, as well as just for other high end luxury goods and his own benefit. >> why is this trial so significant? >> well, it has everything mean it has the ego of sam bankman-fried, who continually wanted to speak out. it has the use of money to gain political influence. it has a adderall. it has all of the various different things that was going on within sort of the confines of the ftx boardroom. >> yeah. so what actually transpire today and wer

investors pursued -- sam freed and other ftx investors pursued.ve seen with nishad singh's testimony and living with his $30 million penthouse at the bahamas, many executives enjoy a life of riches. -- enjoyed a life of riches. ed: let's keep the story going with sandra ro. you are dedicated to furthering the adoption of blockchain technology and this trial to -- put a macro spotlight on it. we are seeing that happen in this country. as you sit there representing your industry, what do you think the outcome will mean for your industry? sandra: rod is fraud -- fraud is fraud in the trial underscores the importance of enforcement and being able to do its job to weed out financial crimes and as the indictment, if it is prevented in this trial, that financial misconduct was committed, the u.s. is based on rule of law and that is good and we will see the outcome of that shortly, it seems. for the industry, i will say this. let's type -- less hype, boston was, less bad -- less noise, less bad actors -- going hand in hand. caroline: talking of noise, the

both saw a swift rise with ftx becoming the second largest crypto exchange in the world.ed and filed for bankruptcy nearly a year ago. customers lost billions of dollars. mr bankman—fried was arrested in the bahamas and extradited to the us. now, he's on trial here in manhattan, charged with stealing the money customers deposited on ftx in order to prop up the investment fund and fund his lavish lifestyle. mr bankman—fried denies those charges but faces decades in prison if he's found guilty. what you have to say to sam? his trial has been the talk of new york as former colleagues, including his ex—girlfriend, have appeared, describing not just their plush communal living in the bahamas but also how mr bankman—fried directed them to defraud customers and investors. but now, mr bankman—fried is telling his side of the story. it's a step defence lawyers usually advise against because it opens up the accused to cross—examination. but those who've met mr bankman—fried think testifying on his own behalf is just the sort of risky move he relishes. sam's a gambler, you know? sam

sell crypto. >> reporter: then last november, ftx abruptly imploded.e company moved billions of dollars to its sister company, alameda research, to propp each other u. whenen investors triried to cas out, they couldn't. the crash sparked a death spiral in the crypto industry that has yet to recover. sbf was asked about the ftx collapse at a conference last november. >> were you truthful with us today? >> i -- i was as truthful as i -- as, you know, i'm knowledgeable to be. there's some things i wish i knew more about. >> he was gambling in his own casino, and it created conflicts of interest. >> reporter: author michael lewis profiled bank man-fried for his new book, going infinity. he recently spoke to 60 minutes. >> it was all sam's world, and there was nobody there to say, like, don't do that. >> right. >> reporter: the ftx melt down wiped out nearly $8 billion of customer deposits. prosecutors also allege bankman-fried spent billions of customers' money to pay for speculative venture investments, to make charitable donations, and to enrich himself.

in new york, the trial of the ftx crypto exchange founder sam bankman—fried is underway.d not guilty to fraud and conspiracy charges related to the collapse of ftx, the now—bankrupt cryptocurrency exchange he ran. on the witness stand today is a key member of his inner circle, caroline ellison, who is continuing her testimony from yesterday. out north america business correspondent erin delmore was at the courthouse and told me about the significance of caroline ellison's evidence. caroline ellison is the star witness for the prosecution. this was reflected yesterday in the level of excitement at the court in an absolutely packed court. she is the former ceo of a crypto hedge fund founded by sam bankman—fried and was personally close with the defendant. they dated off and on for a number of years and even lived together in a $30 million penthouse in the bahamas with executives from both companies. she told the jury yesterday that she and sam bankman—fried committed financial crimes together. she said they took billions of dollars from ftx customer funds and used to pay fo

ruin: money, ego and deception, the fall of ftx. it airs at 8:00 p.m.. caroline: we will talk more about the venture space, much was upended by ftx, but more about the european venture space. ivp comes from the u.k., and we are watching a key stock as well, this is bloomberg. ♪ it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management. ed: welcome back to "bloomberg technology." ed ludlow in san francisco. caroline hyde: i'm caroline hyde in london. we won talk more about the world of the u.k.. vc and the u.k., vc's pili, too much ago ghost like valley firm ivp born in the 1980's, took a leap across the pond opening office in london. nearly 20 years after first started investing in europe. alex them joins us to discuss what has been a boots on ground mentality like why did you decide having already had big hits given super self, why did you need to be here to access

either an exchange ftx or lenders were not experienced in lending or risk management.is shifts the focus away from centralized finance to decentralized finance. caroline: great to have some time with you. we await the trial starting tomo. from new york and san francisco, this is bloomberg technology. ♪ - [mo] if you're thinking about going back to school, this is for you. ♪ - i ended up spending less money my entire time at snhu than i did in just one year at my other university. - [juan] my time at snhu has given me more confidence. now i can go for that promotion. - if you're ready to go back to school... you can do it. southern new hampshire university has changed my life. and it can change yours too. ♪ - [announcer] visit snhu.edu. caroline: time now for talking tech. google will make its chrome laptops in india. the deal is viewed as a win for all parties. production in india can help hp avoid curves on imports and india gains more production value. in the u.k., top talk is selling to work against looming debt maturities that need to be refinanced in coming months

the bulk of the money, how it gets there, in the beginning banks won't open accounts for ftx. because they didn't want to be associated with crypto. and so in order to get your fiat currency, your doctors and your yen and your you're yos, you have to pool there and never gets month offed. what i found, just from the point of view from story telling is that if you took -- if you look at this thing from not just sam's point of view, but point of view of the people who work for him and the people outside of the firm, that you might come out with different answers. a different reader might conclude different things about the intention of sam bankman-fried. i think some of the readers would lynch him. i think others might think this guy is just weird enough so this was maybe more complicated than fur theft. >> stay with us for a moment. i'm going to ask a question, did michael lewis let sam bankman-fried too easily in this book? to duckduckgo on all your devie duckduckgo comes with a built n engine like google, but it's pi and doesn't spy on your searchs and duckduckgo lets you bro

he and his partner founded ftx.d millions into ftx and celebrities like shaquille o'neal, model michelle bundchen had endorsed it. users seared to five million globally. the ftx name became well known. by early 2022, the bahamas based companies' valuation skyrocketed to 32 billion. ftx had become one of the world's biggest crypto exchanges. bankman-fried's wealth climbed to $36 million and he said he wanted to do good with his money. >> it's not what i should do with my money, it's about how i can help the world with it. >> he donated tense of millions to bipartisan committees and frequented capitol hill. at the time he had no plans to slow down. >> i'm going to be here for the long term. i have no plans to leave. >> but in november of 2022, things ban to unravel. they said he had also funded alameda research. in response, on november 6, the c.e.o. of rival crypto exchanges binance said we have decided to liberty date any remaining on our draws. ftx didn't have the funds to meet them. in a rescue attempt ftx reached

beyond that, we expect her to bring people who have lost money using the ftx crypto exchange.hether mr bankman—fried will choose to testify himself. we don't know. it is his right and it would be highly unusual in a case like this but it would also give them a chance to make his own case in front of the jury. his own case in front of the 'u . ~ , his own case in front of the jury. we will be tracking more u dates jury. we will be tracking more updates from _ jury. we will be tracking more updates from the _ jury. we will be tracking more updates from the trial. - jury. we will be tracking more updates from the trial. in - updates from the trial. in other news making headlines before we go, birkenstock is set to make its debut on the new york stock exchange later today. the german orthopaedic footwear is expected to price its ipo at $46 per share. some people have described them as the world's ugliest shoe. nevertheless, it has become a global mega brand, and this year received a further boost when they were featured in the hit film, barbie. us food and drinks giant pepsico say

he pushed back as prosecutors argued he was in charge of ftx ahead of its collapse.'s go to su keenan. this is the first time he has faced questions under cross-examination. su: and accused of years long fraud in which billions of dollars were lost at the ftx exchange. this was his third day at the stand, the first before the judge, the second last week before his own attorney. and now he was in the hot seat under cross-examination by the assistant district attorney. and she leaned into him in many ways after last week he got his message across. he may have made mistakes but did not defraud customers. she asked if he believed there was a hole on customers after the crash. he said he always believed there was the risk of a hole and later explained the difference. but these were the kind of evasive questions he answered. the key takeaways without the prosecution prevented overwhelming evidence, emails, texts, tweets, former testimony to congress, and pr statements by sam bankman-fried, all containing assurances that the ftx exchange was safe. bankman-fried said he coul

it is day two in the historic ftx fraud trial. a look at the crypto hedge fund. in this hour we have an exclusive conversation with them for it -- with san francisco fed president mary daly from the economics club of new york. first let's check in on the markets because it is about the federal reserve that is currently affecting the market. the macro picture being the jobs data is still looking strong. we see selloff in the nasdaq. the nonfarm payrolls data coming up the jobless claims. two year yield recovering somewhat. stabilization in the bond market. still above a 5% level. what is there for the risk appetites when we have high-yield? the dollar stabilizing. let's look at some of the individual movers. i am looking at micron, up .6%. they be that is because samsung electronics managing to boost the price of their own memory chips. analysts saying we are downgrading the stock as well as wells fargo. amazon also off 1.4%. this is as it is being hide by the u.k. in terms of its monopolization. they are worried about the cloud market. the ftc warning amazon abou

you kept in touch with him in the months leading up to ftx's collapse. he marketed himself to me as a version of his public persona. california wunderkind billionaire philanthropist. however, he had trouble answering basic questions, one of which was, what does crypto currency do? give me one thing that it does that cannot be done better by other means, and sam said remittances, sending money overseas. i had just come from el salvador, which is the only country in the world to use crypto currency as money, or try to use it, and el salvador�*s economy is heavily reliant on remittances, it's a quarter of the economy. the government had created this cryptosystem to try to encourage citizens to use crypto currency for remittances, and they weren't using it. the marketing of sam bankman—fried and the reality of sam bankman—fried were very different. so, how did sam bankman—fried present himself such that everybody was surprised when ftx collapsed? we found out in court just last week from his ex—girlfriend that sam was aware that his hair was a selling point,

he said, ftx defrauded all of its customers.hen, we had a venture capitalist that took the stand. he said that they lost -- invested and lost $278 million in that company. they wrote it down to zero. he said, they never had a board of directors or a cfo. so, key testimony there, guys. back to you. >> crazy stuff. kate, thank you. kate rooney. >> racy. >> wow. >> we are kicking the tires on two auto stocks making headlines today. first up, gm. shares dropping after at least 20 million of the automakers vehicles were built with potentially dangerous air bag parts. auto regulators recommending a recall of 50 million vehicles using the same air bags which are made by arc you a motive. it would effect gm and 12 other automakers. gm's stock hitting a three-year low on the back of this. and shares of rivian plummeting. the ev maker announcing a $1.5 billion convertible bond sale after the bell last night. it provided q-3 revenue estimates that were in line with estimates, obviously, it's the raise that has the stock down this much. >>

they finish up testimony of ftx cofounder and i want to know who's next. story. >> stuart, it's none other than caroline ellison and she's the ceo of the research company at the center of the fraud trial, and she happens to be sam bankman-fried's ex-girlfriend. it is an understatement to say that she's the most anticipate the witness of the trial. what we're expecting is explosive testimony about the behind the scenes of the operations of ftx, but also some really juicey details on their relationship, who sam bankman-fried was as a person. one piece of evidence that the prosecution is planning to introduce: her dire. that's going to -- diary and detailing her dynamic and innermost thoughts and days leading up to the collapse. she's the prosecution star witness and a key part of the defense. from opening statements, we know that they plan to blame a lot of this on her so this could really devolve into a heated he said she said and they'll finish cross of gary wang and he's testifying in exchange for leniency and it's focused on refuting sam bankman-fried's

over the collapse of what was once a $32 billion crypto exchange ftx. he has been in custody since august. he didn't know about some of the financial issues going on at ftx despite being ceo at the time. prosecutors need to prove intent here. four of the top lieutenants have pleaded guilty. it will make it hard and challenges for the defense here. at least three executives do plan to testify. we'll see if bankman-fried actually testifies. the judge addressed bankman-fried directly at the start of today saying you have the right to testify, even if your legal team advises you not to. the judge said raise your hand if you want to testify, essentially stand up at any point, but really directly was speaking to bankman-fried there. kelly, tyler? >> so, of the former ftx executives who had pleaded guilty, did i hear you say that all of them are expected to testify at this trial? and how damaging, i assume, would their testimony be to bankman-fried? >> so -- yeah, three out of four tyler plan to testify from what we know. so you have caroline ellison also bank

coming up, sam bankman-fried takes a stand in the ftx fraud trial.e will bring updates from the courtroom, next. this is "bloomberg." ♪ sonali: sam bankman-fried is testifying today in new york courtroom in a high profile fraud trial over the collapse of his ftx crypto exchange. for more, we bring in bloomberg who has been following this closely. what is the defense bringing forward in terms of how they can prove him to be not guilty? >> the most important thing to remember, the defense does not have to tell a story. they just have to poke holes in the prosecution's story. the prosecution's story has been very convincing. we are not on the jury, we are not seeing exactly what they are saying, but we have witness after witness, some of sam bankman-fried's closest friends including his ex-girlfriend, essentially show he was involved in very detailed ways in the alleged misappropriation of a huge amount of user money. the prosecution rested their case. the defense has called two expert witnesses. one is a lawyer from the bahamas and the other is a tech

>> gary wong was quite close friends with sam bankman-fried and cofounded ftx.e stand late in the day 45 minutes before the court was due to finish. immediately he spoke about he and sam committed this multibillion-dollar fraud at ftx , and he altered the code at sam bankman-fried's direction to give the company unlimited funds at ftx. he admitted in front of the jury that he committed federal crimes and pleaded guilty to them and ended into an agreement to testify against sam. haidi: what comes next in this entire process? >> we are expecting a sister money to continue through tomorrow, essig is one of the key witnesses and the government's case. i imagine sam's loyal -- lawyers want to take time questioning, mainly that he was acting at sam's behest at altering the code. and then, we are waiting to hear from the two other cooperating witnesses, the other one being caroline, who was sam's ex-girlfriend. we are waiting to see that in the next few weeks. haidi: let's take a look at stocks we are watching when trade opens in australia just about four minutes time.

hannah: yes, it testimony yesterday, a former friend of sam bankman-fried and worked for ftx.that sam did not live that life story. he wore regular clothes. i believe that is offset by the millions of dollars in real estate purchases that ftx made and the employees that the life the employees had in the bahamas. caroline: hannah miller, a great podcast on the ftx and the downfall and i sure you will continue to be a viewer and listener in on all of that is happening is to be new york. we thank you for running esther with have been yesterday. another story we have been following. for this fund, abc foundation grant program for businesses run by black women. it has been prohibited from causing his application window september 30 and took for their order by accord. is following a lawsuit from the american airlines for equal rights, it argues the program by the fearless fonda violates section 1981 which bans racial discrimination in contracting. let's bring in kelsey butler to break down what is a complex but far-reaching argument that is happening out in georgia. the argument her

liz: he served at ftx. >> both cut deals.recting the fraud, in lang's case he not basically said, said sam bankman-fried allowed me to do this backdoor mechanism where we could pull money out of the ftx. remember the crime, the crime was alameda has got some issues. we're investing all this other money. where can we get money on a short-term basis? you couldn't just take it out of the customer accounts until they created the backdoor. the backdoor allowed them to pull out ftx accounts. >> without telling the customer? >> without telling the customer. you couldn't do it in the past. sam bankman-fried agreed to that. the question would be, why did he agree to that? if he takes the stand i don't think he will, i think he wants to. i don't think he is. ellison is going further. essentially what she is saying all the withdrawals were done with his knowledge. when alameda was losing money during the crypto collapse she conferred with him. he approved them using that money when they needed to use it. it was his idea for them to reac

max: he is someone who has been talking nonstop ever since the collapse of ftx.n making his own defense. definitely a own conventional legal strategy. guy: where will this take us? what is he going to say? >> he had been saying he did not knowingly -- did not know he knowingly committed fraud. they had when making the point over and over and over that these loans taking -- taken between ftx were known, were a very standard course of business and anyone could take a margin loan as a customer from ftx, just alameda had more of them. he had one from after another who had known him from high school. he knew that there was more wrong with ftx and its own finances let alone alameda. his own defense looks critical in terms of how he defends himself on the basis of what his lawyer was saying. alix: he can say all he wants. i did not know, i thought i was doing that. the evidence stacked up so much with those working with him. can he convince a jury? max: it is a jury trial. in white collar cases it is hard to get conventions -- convictions. he has been very effective in

he became aeveoper at ftx.t he may have adveently changed some cde that led to a crime occurring. in terf wat the jury looks like, there are nine women and three men. they largely come from public service or government jobs. there is a nurse. there is a train conductor. there is a retired prison officer. so, people from all walks of life. shery: one thing we heard from sam bankman-fried's defense. ava: it will be a couple weeks before we hear what it raises an amendment rate would put forward. we got hands of it today. -- hence the today when his defense lawyer addressed the jury saying sam acted in good faith brady thought he was making good business decisions and he did not intend to steal money or commit fraud. he said he relied on alameda research ceo caroline at a certain run the day-to-day operations of the hedge fund. he actually advised her to hedge against exposure last year. she does not do that. so, there is thinking there might be shifting of the blame unfolding in his defense during this trial. she