The Daily Valet. - 11/3/23, Friday
✔️ The Crypto Mogul Convicted
Friday, November 3rd Edition
By Cory Ohlendorf, Valet. Editor
Don't forget to set your clocks back an hour this weekend.
Today’s Big Story
Crypto Mogul Convicted
Sam Bankman-Fried found guilty on all counts at fraud trial over crypto exchange FTX
That didn't take too long. About four hours after a federal jury in Manhattan began deliberations, the group of nine women and three men convicted FTX co-founder Sam Bankman-Fried of fraud, conspiracy and money laundering, the culmination of a month-long trial that saw the former crypto mogul take the stand in his own defense after his inner circle of friends-turned-deputies provided damning testimony against him.SBF, one of the most high-profile names in crypto, “perpetrated one of the biggest financial frauds in American history,” Damian Williams, U.S. attorney for the Southern District of New York, said after the verdict. Nearly $10 billion in customer deposits went missing from what was then the world's third-largest crypto exchange before FTX imploded and left thousands of customers practically wiped out.The blow-up of FTX and its sister hedge fund Alameda Research—both now in bankruptcy—was so messy, it's been compared to Enron. The empire was valued at $32 billion before it collapsed. According to the New York Times, the charges carry a maximum sentence of 110 years, though we won't know officially until the sentencing, which is set for March 28. Bankman-Fried is, of course, expected to appeal.Federal prosecutors accused the 31-year-old founder of treating FTX as his personal piggy bank. “The cryptocurrency industry might be new, the players like Bankman-Fried might be new,” Williams said. “But this kind of fraud, this kind of corruption, is as old as time.” SBF misappropriated customer funds to let FTX spend lavishly on luxury real estate, investments, and “dark money” political donations, all at his direction, the jury found.Bankman-Fried's decision to take the stand allowed him to argue he had no intent to steal money and defraud anyone. But it was a risky move and Bankman-Fried said he “couldn't recall” more than 140 times in response to questions on cross-examination. His lawyers attempted to portray him as a “math nerd” who built a thriving business only to see it undone by forces largely outside of his control. The prosecution countered that Bankman-Fried's former employees, in pleading guilty, were accepting responsibility for their actions—something he was unwilling to do.
Dig Deeper:
According to the Washington Post’s Megan McArdle, Bankman-Fried’s most audacious gamble was betting on himself during the trial.
Israeli Troops Enter Gaza City
A cease-fire is ‘currently not on the table,’ IDF says
Israeli soldiers have encircled Gaza City, the Israeli military said on Thursday night, waging close-quarters combat with Hamas as they push forward with what officials have predicted will be a long and bloody ground invasion. Repeated airstrikes on a densely populated refugee camp have drawn widespread condemnation and fueled new anger about the civilian cost of Israel's expanding military operation.Israel Defense Forces spokesperson Daniel Hagari told reporters that the “concept of a cease-fire is currently not on the table at all.” But while there was no sign of such a deal being struck, a breakthrough at the Rafah border has allowed the first foreign nationals and injured civilians, including at least 79 Americans and their family members, to leave the Gaza Strip and enter Egypt. The crossing, which was opened Wednesday, should allow up to 500 people to cross daily.Currently, the U.S. military is flying unarmed drone flights over Gaza to help with hostage recovery, according to two U.S. officials. The drones are MQ-9 Reapers and they have been flying since after the Oct. 7 attacks, the officials told NBC News. The officials were not aware of any previous times U.S. military drones have flown missions over Gaza.
Meanwhile:
The Republican-led House approved $14.3 billion for Israel’s war with Hamas, tying the aid to spending cuts. The Senate plans to craft its own bill that will include aid for Ukraine and Gaza.
Rents Are Falling Across the Country
Now might be the time to move ... for some
It's not the best time to buy or sell a house, but renters looking for new digs may be in luck. While U.S. home prices experienced a seven-month streak of increases, rent prices across the nation are on a steady decline. As of September, monthly rental costs saw a year-over-year decrease for the fifth straight month, according to research gathered by Realtor.com. The report looked at rents for studios, one-bedroom, and two-bedroom properties in the country's 50 largest metro areas. Overall, the median asking rent fell by nearly one percent in September to $1,747 per month.So, what's contributing to the decline? The biggest factor, it turns out, is extra inventory. New apartment construction is booming, and according to data from RentCafe, it is on track to hit a record high this year, with almost 461,000 units expected to come online by the end of December 2023. To keep up with demand, an additional one million new apartments are set to be delivered by 2025.Keep in mind that renters are still paying more than pre-pandemic times, however. September 2023 rents were $338 (a whopping 24%) higher than September 2019. But “the rapid rate at which these units are being absorbed suggests that demand in the rental market remains robust,” Realtor.com's senior economist Jiayi Zu told Robb Report. Migration hotspots, including Austin, Texas, saw the biggest decline in monthly rental costs. Prices in the city dropped 7.3%, followed by Dallas with a 6.2% dip. Portland and Orlando saw the third-biggest decrease at 5.4%. “In today's market, we are seeing high home prices and record mortgage rates,” adds Zu. “Declining rent means buying is not as urgent and renting is more favorable.”
Dig Deeper:
These are the top 24 metro areas where tenants are paying less this year.
‘Super Commuting’ Is Here to Stay
Hybrid work is changing the calculus of what it takes to live and work in separate places
A new breed of commuter is going to great lengths—and doing a lot of number crunching—to pull off living and working in far-apart places. A “super commuter” used to mean someone who trekked at least 90 minutes to work each way, often five days a week. But with more companies embracing hybrid work, the new super commuter is one of the many people who now live hundreds of miles or multiple states away from where they work. They commute fewer days but even longer distances. I can only imagine what the viral 9-to-5 Girl would have to say about this.According to Business Insider, this new arrangement is on the rise, and as a result, reshaping the geography of American work. “The winners will be the big cities that best accommodate the needs of jet-setters when they're at the office, and the quieter locales that cater to their lifestyles when they're at home. The losers will be mid-tier cities like Cleveland and Syracuse that have long served as regional hubs for large employers.”Of course, it's not easy. According to the Wall Street Journal, making it work often means predawn flights to another time zone, paying for a second apartment or hotel stays, or hopping on a plane or train impromptu to make a last-minute meeting with the boss. Even with the extra housing and travel expenses, some long haulers say the payoff can translate to thousands of dollars in savings or better work-life balance. It's become such a popular option that even interns are doing it to avoid paying exorbitant rents in cities like New York.
FYI:
The national average commute time in the U.S. is 26.6 minutes, according to the Census Bureau. That means as a whole, the daily average is just under an hour, 53.2 minutes.
In Other News
Officials believe a number of factors could be helping.
Eric Trump Testifies He Wasn’t Aware of Dad’s Financial Statements, But Emails Show Some Involvement
Have you heard about ...
A Weekend Pairing
‘All the Light We Cannot See’ + a Bourbon Sidecar Cocktail
Director Shawn Levy's next project is not Deadpool 3, but a World War II drama. In All the Light We Cannot See, Anthony Doerr's Pulitzer Prize-winning novel is adapted into a four-part period drama that takes place during the height of World War II in occupied France. Aria Mia Loberti stars as a young blind woman named Marie-Laure broadcasting across Europe to reunite with her father (Mark Ruffalo), but she ends up forging a friendship with a Nazi recruit named Werner (Louis Hofmann).Steven Knight, who adapted the screenplay, told the Hollywood Reporter that he wanted the story—shot on location and utilizing archival footage of the area being bombed (and later what it looks like now)—would be a symbol of hope during these war-ravaged times. And while some reviews called the series a “heartening and hopeful wartime tale” and praised the cast's performances, other reviews say it feels a little heavy-handed and even veers into “schmaltzy” territory. Like with most of these, if you want the most fully realized version of this story, stick with the award-winning novel on which this series is based.
Pair It With
For this pairing, I found a riff on a cocktail that was popular during the Second World War. This sidecar swaps cognac for Basil Hayden Bourbon and finishes it with fresh lemon juice and orange liqueur for a tart, yet sweet finish.
Also Worth a Watch:
‘Blue Eye Samurai’ on Netflix; ‘Quiz Lady’ on Hulu
Shopping
What We’re Buying
A cardigan
Anything mohair is a show stopper, but a striped mohair cardigan is sure to turn heads. This one from OnlyNY has a soft-to-touch mohair wool nylon blend with ribbed finishing on the cuffs and hems for a modern fit.
Get It:
Stripe mohair cardigan, $168 / $134.40 (w/code FALLFLASH) by OnlyNY
Morning Motto
Clear the way for the good stuff.
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