Sam Bankman-Fried’s High Political Ambitions

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Bitcoin sounds like a technical, complicated topic, but in reality, it’s just digital money. If you use Venmo or PayPal, you might be ready to try bitcoin as well. We’re launching an email course, How To Earn Bitcoin, that brings Forbes’ expert bitcoin tips and education directly to your inbox.

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BREAKING NEWS

Rep. George Santos (R-N.Y.) was indicted on ten additional charges, with prosecutors alleging the disgraced congressman engaged in two schemes that involved the stealing of donors’ identities and financial information. Prosecutors allege Santos and former campaign treasurer Nancy Marks, who recently pleaded guilty to a federal fraud charge, submitted false reports containing inflated campaign fundraising numbers to qualify for a national party committee program. And they accused Santos of charging donors’ credit cards repeatedly without authorization and sending money to his campaign, other candidates’ campaigns and to his own bank account.

The death toll from the war between Israel and Hamas has risen to at least 2,150 as of Wednesday morning, including 1,200 Israelis and 950 Palestinians. In retaliation against Hamas’ deadly attack on the country over the weekend, Israeli forces continued their aerial bombardment of the Gaza Strip on Wednesday, and signaled a potential ground offensive into the Palestinian territory as the first batch of American military aid arrived.

BUSINESS + FINANCE

Crypto billionaire turned alleged felon Sam Bankman-Fried thought there was a 5% chance he’d serve as president, his colleague and ex-girlfriend Caroline Ellison testified in court Tuesday, shedding light on just how high Bankman-Fried’s political ambitions were. Ellison, who helmed the Alameda firm which prosecutors allege illegally commingled customer funds from its sister crypto exchange FTX, said earlier Tuesday that Bankman-Fried “is the one who set up the system to allow Alameda to take money,” and that the former FTX CEO “directed” her to “commit these crimes.”

The Israeli shekel just hit its lowest level against the U.S. dollar in more than seven years, one of the most significant market fallouts from the escalating military conflict in the country. The U.S. dollar typically gains amid international strife as it’s widely considered a “safe haven” asset considering its historic holding of value even during economic downturns and geopolitical rockiness.

Even with large-scale tech layoffs in the headlines, U.S. job openings outnumber candidates nearly 2 to 1, according to a recent analysis by staffing firm Robert Half. As you are considering the best work environment for you, Forbes partnered with market research firm Statista to create our seventh annual list of the World’s Best Employers. For the second straight year, Samsung Electronics and Microsoft led the list at No. 1 and No. 2.

WEALTH + ENTREPRENEURSHIP

On Tuesday, The Bill & Melinda Gates Foundation announced a $30 million investment in a new AI platform in Africa that it says will aid scientists in developing solutions for healthcare and social issues across the continent. The foundation hopes the initiative will make AI, which Bill Gates has referred to as “the most important advance in technology since the graphical user interface,” more accessible to African researchers, paving the way for local innovation.

TECH + INNOVATION

Startup Cleanlab has raised $25 million to help fix data problems in AI models through its software. Throw a raw, unlabeled data set at their product and it will automatically label up to 90% of it on a first pass, CEO and cofounder Curtis Northcutt told Forbes. “The biggest barrier to innovation right now for self-driving cars, enterprise adoption of generative AI and real-time analytics is the lack of curated and accurate data,” Northcutt said.

Google is going to court for the first time for a pay discrimination lawsuit in which a female executive alleges that she was unfairly hired at a lower level—and salary—than male counterparts. She alleges she was denied promotions because of her complaints, which she claims cost her millions of dollars in “past and future lost wages and benefits.” It’s the first pay discrimination suit to be filed against the company after the high-profile Google walkout in 2018, when 20,000 workers demonstrated against the company’s handling of sexual misconduct allegations and other labor issues, including pay inequity.

MONEY + POLITICS

In a speech at the White House, President Joe Biden confirmed Americans are among those being held hostage by Hamas militants who invaded Israel over the weekend. He also announced the number of Americans killed in the conflict has risen to 14. Biden said he will ask Congress to “take urgent action” to fund additional national security measures when the House returns from recess.

A growing number of Republicans say they will nominate and vote for Rep. Kevin McCarthy (R-Calif.) as Speaker of the House after he was ousted from the role, and McCarthy said Monday he would be open to becoming speaker again. It could drag out the election for the next House leader as the House is hamstrung from passing legislation to facilitate additional aid for Israel.

TRENDS + EXPLAINERS

The WHO’s chief scientist Jeremy Farrar has warned dengue fever could soon “take off” and become a constant presence in the U.S., one of many emerging health threats driven by the climate crisis as rising temperatures make new parts of the world hospitable to vectors of disease. Dengue—often called “breakbone fever” on account of the excruciating pain it can cause—is caused by a virus spread through the bites of infected female mosquitoes. Around 400 million people are infected every year.

DAILY COVER STORY

Inside Paypal’s Billion Dollar Battle For Payment Processing Dominance

TOPLINE Consumers rarely think about who processes their payments at checkout, as long as it is fast and hassle free. But behind the scenes, there is a battle underway to control “buy now” technology.

E-commerce sales in the U.S. alone surpassed $1 trillion in 2022, from which billions in revenues and profits flowed to dozens of firms vying to be at the center of the transactions, including industry giant PayPal.

Last year, the San Jose company began cutting the cost of payment services it offers under its Braintree brand, a white-label service that lets companies small and large accept debit cards, credit cards and other payment methods from consumers.

PayPal is making a land-grab play in North America to gain market share over close competitors including Dutch processor Adyen and fintech darling Stripe, analysts say. It’s trying to reel in merchants by offering lower prices on Braintree services and then bundle them with more profitable features like branded checkout, its credit products or PayPal Payouts, which helps merchants like Uber pay their drivers.

The payments processing business is one that thrives on tiny percentages. In 2022, PayPal had net revenue of $27.5 billion, or 2% of the $1.36 trillion total transaction volume that it processed. Competitor Adyen, more of a pure play in transaction processing, had revenues of $1.4 billion from $815 billion in processed volume, or just 0.17% of its volume. Stripe’s revenues were $3.2 billion from $817 billion in volume, or 0.39% percent.

The risk PayPal runs by cutting processing fees is triggering a race to the bottom. If all three companies chose to cut prices, they would all take hits to their bottom line, though that may be less risky for Paypal given its higher margins and the fact that it has the wider suite of products available for cross-selling.

WHY IT MATTERS The slowdown in e-commerce spending post-pandemic has put pressure on all three companies to maintain the coronavirus-era growth that thrilled investors. In 2020, PayPal and Adyen’s stocks rose 116% and 173%, respectively. This year, they are down 19% and 47%.

MORE Better Late Than Never: Federal Reserve Platform Will Finally Bring Instant Payments To More Banks–And Customers

FACTS AND COMMENTS

On Saturday, everyone in the U.S. and beyond will be able to see a partial solar eclipse (and please use solar eclipse glasses to do so), but those in a narrow path will witness the brief spectacle of a “ring of fire”—the colloquial name for an annular solar eclipse. This type of partial eclipse occurs when the moon is so far from Earth in its orbit that it leaves a small ring of the sun’s disc exposed:

125 miles: The width of the path of annularity (which includes eight U.S. states) where the “ring of fire” will be visible

April 8, 2024: When a total solar eclipse—where the moon completely blocks the sun’s disc—will come to North America

2012: The last time there was an annular solar eclipse in the U.S.

STRATEGY AND SUCCESS

Halloween falls squarely on a workday this year, and if you plan to dress up and participate in the festivities at the office, it’s important to balance professionalism and creativity. We’ve got you covered with some work-appropriate costume ideas, with everything from classics like a pumpkin or vampire to characters from movies like The Wizard of Oz, Clueless and Shrek. Just be sure to skip risqué costumes or anything cultural or religious.

VIDEO

QUIZ

A new California law will ban certain food additives deemed dangerous by some studies. These additives are commonly used in snacks like Brach’s candy corn and Little Debbie Cosmic Brownies. Companies have until 2027 to reformulate products to exclude the prohibited chemicals, but users on social media were falsely claiming that the law would ban which candy?

A. Sour Patch Kids

B. Reese’s Peanut Butter Cups

C. KitKat bars

D. Skittles

Check your answer.

ACROSS THE NEWSROOM

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