Many sued in FTX scandal, Elon Musk to reduce his time at Twitter, EU stocks edged higher on Thursday
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Summary:
- U.S cryptocurrency investors suing a number of celebrities in the FTX crash.
- Musk predicted on Wednesday that he would soon spend less time managing Twitter.
- European markets declined and US futures edged up.
FTX scandal leaves celebrities sued
FTX founder Sam Bankman-Fried, as well as a number of celebrities who supported his exchange, such as NFL quarterback Tom Brady and comedian Larry David, were sued by U.S. cryptocurrency investors who claimed they used misleading tactics to sell FTX yield-bearing digital currency accounts. The FTX yield-bearing accounts, according to the proposed class action lawsuit filed on Tuesday night in Miami, were unregistered securities that were forcibly offered in the country.
As a result of accusations that $10 billion in customer assets were transferred from FTX to Bankman-trading Fried's firm Alameda Research, FTX filed for bankruptcy and is now under investigation by American authorities. Reuters has been informed by sources that at least $1 billion in client cash are stolen. U.S. investors allegedly suffered losses of $11 billion when the cryptocurrency exchange failed due to liquidity issues, according to the lawsuit.
David, the creator of "Seinfeld" and "Curb Your Enthusiasm," as well as 11 athletes and other celebrities who marketed FTX, are being sued for damages. Bankman-Fried is also being sued. The Golden State Warriors basketball franchise, tennis player Naomi Osaka, and Brady are all defendants in the lawsuit. Prior to now, investors and the US Securities and Exchange Commission have sued famous people for falsely endorsing cryptocurrencies.
*TOM BRADY, GISELE BUNDCHEN, STEPH CURRY, AND LARRY DAVID AMONG CELEBS SUED OVER FTX 'PONZI SCHEME' - https://t.co/Jga8DTaRrZ pic.twitter.com/48ZdRZAFVa
— Investing.com (@Investingcom) November 17, 2022
Musk at twitter
Elon Musk predicted on Wednesday that he would soon spend less time managing Twitter and find someone else to do so. The remarks were made by Musk as he testified in a Delaware court to refute allegations that his $56 billion compensation package at Tesla (NASDAQ:TSLA) was based on performance goals that were simple to meet. The Wall Street Journal claimed on Monday that Musk stated that his "workload has recently increased quite a lot" during a virtual appearance at the B20 business conference in Indonesia.
"I have too much work on my plate, that is for sure," the CEO of Tesla, Twitter, SpaceX, and Boring Company said.
Concerns about Musk's present workload have been raised by numerous Musk supporters. In a later tweet, he said he had "Tesla covered too. Will be there part of this week," after tweeting that he had been "at Twitter SF HQ all night. Will be working & sleeping here until org is restored."
*ELON MUSK SAYS HE EXPECTS TO REDUCE TIME AT TWITTER AND FIND SOMEONE TO RUN THE COMPANY - https://t.co/mvj7lIWYj7 pic.twitter.com/PzUBo3kjru
— Investing.com (@Investingcom) November 17, 2022
US stocks increased slightly on Thursday
On Thursday, investors weighed conflicting economic statistics coming out of the world's largest economy and anticipated a significant budget speech in the UK. European markets declined and US futures edged up. Germany's Dax rose 0.2% while the regional Stoxx Europe 600 dipped 0.1%. The S&P 500 on Wall Street gained 0.1%, and the Nasdaq 100, which is heavily weighted toward technology, gained 0.2%.
Ahead of UK chancellor Jeremy Hunt's anticipated announcement of a comprehensive package of spending cuts and tax increases intended to rein in inflation, mend the nation's shattered finances, and repair some of the reputational damage caused by his predecessor Kwasi Kwarteng's disastrous "mini" Budget in late September, London's FTSE index fell 0.5%.
Data released on Wednesday revealed that on the strength of rising energy and food costs, UK inflation soared to a 41-year high in October, increasing to 11.1 percent from 10.1 percent in September. Even though figures indicate the UK has already entered a recession, the report increases pressure on the Bank of England to hike interest rates from their current level of 3% when it meets again in December.
Sterling lost its early gains and fell 0.2% to $1.18 against the dollar. The actions follow an unexpected increase in US retail sales in October.
European stocks nudge higher as investors digest economic data https://t.co/AjA80ozugQ
— Financial Times (@FT) November 17, 2022
Sources: ft.com, investing.com, twitter.com
