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    Bitcoin Hits Record High, Recovering From 2022 Meltdown

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    Bitcoin’s price surged above $68,800, breaking the record the digital currency set in November 2021 when the crypto industry was booming.Bitcoin hit a record high of about $68,800 on Tuesday, capping a remarkable comeback for the volatile cryptocurrency after its value plunged in 2022 amid a market meltdown.Bitcoin’s price has risen more than 300 percent since November 2022, a resurgence that few predicted when the price dropped below $20,000 in 2022. Its previous record was just under $68,790 in November 2021, as crypto markets boomed and amateur investors poured savings into experimental digital coins.“This is just the beginning of this bull market,” said Nathan McCauley, the chief executive of the crypto company Anchorage Digital. “The best is yet to come.”Bitcoin’s recent surge has been driven by investor enthusiasm for a new financial product tied to the digital coin. In January, U.S. regulators authorized a group of crypto companies and traditional finance firms to offer exchange-traded funds, or E.T.F.s, which track Bitcoin’s price. The funds provide a simple way for people to invest in the crypto markets without directly owning the virtual currency.As of last week, investors had poured more than $7 billion into the investment products, propelling Bitcoin’s rapid rise, according to Bloomberg Intelligence.The price of Ether, the second-most-valuable digital currency after Bitcoin, has also risen this year. Its increase has been driven partly by enthusiasm over the prospect that regulators may also approve an E.T.F. tied to Ether.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      What Happens to FTX Clawback Cases if the Company Repays Its Creditors?

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      Lawyers for the failed crypto exchange told a bankruptcy judge they expected to pay creditors in full.When the cryptocurrency exchange FTX declared bankruptcy about 15 months ago, it seemed few customers would recover much money or crypto from the platform. As John Ray III, who took over as chief executive during the bankruptcy, put it, “At the end of the day, we’re not going to be able to recover all the losses here.” He was countering Sam Bankman-Fried’s repeated claims that he could get every customer their money back.Well, it turns out, FTX lawyers told a bankruptcy judge this week that they expected to pay creditors in full, though they said it was not a guarantee and had not yet revealed their strategy.The surprise turn of events is raising serious questions about what happens next. Among them: What does this mean for the lawsuits FTX has filed in an attempt to claw back billions in assets that the company says it’s owed?Will the possibility that customers could be made whole be raised at Bankman-Fried’s sentencing? Will potential relief for customers help his appeal?Some clawback cases could become harder to win — or may be withdrawn. FTX’s restructuring lawyers have already filed about a dozen suits, including against Bankman-Fried’s parents, and they expect to file more clawback claims this year. Other high profile lawsuits include one against K5, an investment firm headed by Michael Kives, as well as Voyager Global.Some of the clawback cases involve allegations of fraud, but not all do. Before fraud claims are argued, there is typically a legal fight over whether a company was insolvent at the time of the investment or that the investment led to insolvency. If every FTX creditor stands to get 100 cents on the dollar, the clawback cases that don’t involve fraud wouldn’t serve much of a financial purpose and may be more difficult to argue, some lawyers say. “In theory, clawbacks may go away there,” said Eric Monzo, a partner at Morris James who focuses on bankruptcy claims.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      How Do Kwon, a Crypto Fugitive, Upended the Politics of Montenegro

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      Only days before an election in Montenegro, a letter from Do Kwon, the fugitive founder of the Luna digital coin, claimed that crypto “friends” had provided campaign funding to a leading candidate.Already notorious as an agent of market mayhem, the crypto industry has now unleashed political havoc, too, upending a critical general election in Montenegro, a troubled Balkan nation struggling to shake off the grip of organized crime and the influence of Russia.Only days before a vote on June 11, the political landscape in Montenegro was thrown into disarray by the intervention of Do Kwon, the fugitive head of a failed crypto business whose collapse last year contributed to a $2 trillion crash across the industry.In a handwritten letter sent to the authorities from the Montenegrin jail where he has been held since March, Mr. Kwon claimed that he had “a very successful investment relationship” with the leader of the Europe Now Movement, the election front-runner, and that “friends in the crypto industry” had provided campaign funding in return for pledges of “crypto-friendly policies.”Europe Now had been expected to win a decisive popular mandate in elections for a new Parliament. Its campaign mixed populist promises to raise salaries and pensions with pledges to put the country on a clear path to joining the European Union by cleansing the crime and corruption that flourished under Montenegro’s former longtime leader Milo Djukanovic.The party still won the most votes, but fell far short of expectations, finishing just ahead of a rival group that supports Russia and that can now disrupt efforts to form a stable pro-Western coalition government. Only 56 percent of the electorate voted, a record low turnout.Mr. Kwon’s intervention “destroyed us,” said the Europe Now leader, Milojko Spajic, a target of the disgraced crypto entrepreneur’s letter, which was reviewed by The New York Times and whose existence leaked in the local news media before the vote.Milojko Spajic, the leader of the Europe Now Movement, believes Mr. Kwon’s letter hurt his party’s chances in national elections.Stevo Vasiljevic/ReutersIn an interview, Mr. Spajic denounced Mr. Kwon’s accusations as “super fake” and part of a “dirty political game” to hurt his party’s chances. Mr. Kwon’s lawyers have not disputed the letter’s authenticity.As a founder of Terraform Labs, the Stanford-educated Mr. Kwon was once hailed as a crypto trailblazer, responsible for the design of a popular digital coin, Luna, he said would change the world and whose fans he proudly referred to as “Lunatics.”The spectacular collapse in May 2022 of Luna and a second cryptocurrency that Mr. Kwon designed, TerraUSD, transformed him from a hero of innovation into a fugitive wanted by both the United States and South Korea on fraud charges.After that, he vanished, his whereabouts a mystery until the authorities in Montenegro announced in March that he had been arrested while trying to board a private plane to Dubai in Podgorica, the capital, using a forged Costa Rican passport.He had insisted it was genuine, but a Podgorica court on Monday found Mr. Kwon and a South Korean crypto business partner guilty of using forged travel documents and sentenced them to four months in jail.What Mr. Kwon was doing in Montenegro before his arrest and when he arrived is still unclear. His activities since his arrest are murkier.Though stripped of his electronic devices, the jailed Mr. Kwon appears to have somehow moved $29 million from a crypto wallet linked to him, South Korean prosecutors said, confirming a report by Bloomberg News.Dritan Abazovic, the acting prime minister of Montenegro and a political rival to Mr. Spajic, said there was no record of Mr. Kwon entering the country or registering at hotels, so the authorities want to establish whether he had local collaborators.“I’m not accusing Spajic of anything,” Mr. Abazovic said in an interview, “but we need to see what was happening in the crypto community here and whether it was involved in money laundering and campaign financing.”Campaign posters in Podgorica, Montenegro. Only 56 percent of the electorate voted in the election on June 11, the lowest turnout in decades.Stevo Vasiljevic/ReutersLong a center for cigarette smuggling and cocaine trafficking during Mr. Djukanovic’s more than three-decade rule, Montenegro has in recent years promoted itself as a center for the crypto industry.In 2022, Mr. Spajic, who was the finance minister at the time, predicted that the industry could account for nearly a third of Montenegro’s economic output within three years.For Mr. Spajic and fellow blockchain believers, crypto was the next Big Thing, according to Zeljko Ivanovic, the head of the independent media group Vijesti.“It was seen as an easy way out — a new secret recipe to replace the smuggling that had been Djukanovic’s recipe for decades,” Mr. Ivanovic said. “But the miracle cure turned out to be a disaster.”Eager to attract talent, Montenegro last year awarded citizenship to Vitalik Buterin, a Russian-Canadian and the founder of Ethereum, the most popular cryptocurrency platform.Mr. Buterin said he “never knowingly met or talked to Do Kwon, including through third parties,” and “never gave money to Europe Now.”In May, he hosted a blockchain conference in Montenegro that was attended by, in addition to high-tech enthusiasts, Mr. Spajic and the acting prime minister, Mr. Abazovic.The Ethereum founder Vitalik Buterin was awarded Montenegrin citizenship as part of an effort to develop a crypto industry in the country.Michael Ciaglo/Getty ImagesMr. Spajic posted a photograph on Twitter of himself with Mr. Buterin, who is holding up his new Montenegrin passport, and the message: “We will bring the best people in the world to Montenegro.”Montenegro’s welcoming ways, however, also attracted George Cottrell, a British financier convicted of wire fraud in the United States, who later moved to Montenegro under a new name, George Co.Mr. Cottrell, according to officials, left Montenegro for London on June 9, soon after the police raided Salon Privé, a bar in the coastal resort town of Tivat that law enforcement officials believe is connected to him. It features gambling machines and a “cryptomat,” used for buying and trading digital currencies.Ratko Pantovic, Mr. Cottrell’s lawyer, who also represents the bar, said his British client had no connection to the gambling salon or the crypto industry.Montenegro’s acting interior minister, Filip Adzic, who oversaw the police raid in Tivat, said Mr. Cottrell had not been charged with any crime but was being investigated for involvement in possibly illegal crypto activities.Montenegro, Mr. Adzic said, needed to be careful with a business that, because it facilitates anonymous transactions, “is good for organized crime, good for financing terrorists and good for money laundering.”The police raided a bar in Tivat, Montenegro, that featured gambling machines and a “cryptomat,” used for buying and trading digital currencies.Savo Prelevic/Agence France-Presse — Getty ImagesAmerican and South Korean prosecutors want to examine three laptops and five cellphones seized by the authorities from Mr. Kwon at the time of his arrest for clues to what happened to billions of dollars invested in his now mostly worthless digital coins.Of more interest to Montenegrin authorities, however, is what they may contain relating to campaign financing and Mr. Kwon’s relationship with Mr. Spajic.In a court hearing on June 16, Mr. Kwon’s lawyers said their client denied having funded Mr. Spajic’s electoral campaign. Mr. Kwon’s letter, however, said that “other friends in the crypto industry” contributed.“I have evidence of these communications and contributions,” Mr. Kwon said in his letter.Mr. Spajic initially denied any connection to Mr. Kwon, but later acknowledged he had known him since 2018 and invested money with him on behalf of an investment fund he says he was working for in Singapore — “he cheated us,” Mr. Spajic said — and met him again late last year in Belgrade.That followed an announcement by South Korean prosecutors in September that Interpol, the global police organization, had issued a “red notice” for Mr. Kwon’s arrest. Mr. Spajic said he had met Mr. Kwon only because “we wanted our money back.”Mr. Kwon gave a different account, claiming in his letter that Mr. Spajic wanted to discuss campaign financing. He said Mr. Spajic, who was then planning to run for the presidency, explained that he was “raising few million USD for the upcoming campaign” and “asked me to make a contribution.” Mr. Kwon said he declined.Mr. Spajic said it was “absolutely false” that they discussed campaign financing.Milan Knezevic, leader of the pro-Russian bloc that finished second in the June 11 election, casts his ballot.Boris Pejovic/EPA, via ShutterstockMilan Knezevic, the leader of the pro-Russian bloc that finished second in the election, said he relished his group’s unexpectedly strong result, achieved in part because of the disruption caused by Mr. Kwon, but he still regretted that Montenegro had opened its arms to crypto mavens.It would have been better, Mr. Knezevic said, sitting in an office decorated with pictures of President Vladimir V. Putin of Russia, to have welcomed fighters from the Islamic State militant group.“At least with ISIS, you know what you are up against,” he said. “But we have no idea what these crypto people are really doing.”Alisa Dogramadzieva More

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      Why Ron DeSantis Is Taking Aim at the Federal Reserve

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      Florida’s governor has been blasting Jerome H. Powell, the Fed chair, while spreading misinformation about central bank digital currency.WASHINGTON — Gov. Ron DeSantis of Florida, who is preparing to take a widely anticipated leap into a 2024 presidential campaign, appears to have discovered something that populists throughout history have found to be true: Bashing the Federal Reserve is good politics.Mr. DeSantis has begun to criticize Jerome H. Powell, the Fed chair, in speeches and news conferences. He has alleged without evidence that the Biden administration is about to introduce a central bank digital currency — which neither the White House nor the politically independent Fed has decided to do — in a bid to surveil Americans and control their spending on gas. He has quoted the Fed’s Twitter posts disparagingly.His critiques echo a familiar playbook from the Trump administration. Former President Donald J. Trump often blasted the central bank during the 2016 campaign and while he was in office, as policymakers lifted interest rates and slowed economic growth. Mr. Trump at one point called Mr. Powell — his own pick for Fed chair — an “enemy,” comparing him to President Xi Jinping of China.Because the central bank is responsible for controlling inflation, it is often blamed both for periods of rapid price increases and for the economic damage it inflicts when it raises rates to bring that inflation under control. That can make it an easy political target.And populist skepticism of government control of money dates back centuries in America. The nation’s first and second attempts at creating a central bank failed partly because of such concerns. The Fed, set up in 1913, was designed as a decentralized institution with quasi-private branches dotted around the country in part to avoid concentrating too much power in one place. It has been the subject of conspiracy theories and political attacks ever since.“In many ways, it is not surprising at all,” said Sarah Binder, a political scientist at George Washington University who has studied politics and the Fed. Mr. DeSantis is placing himself to Mr. Trump’s right, she said, “and it sounds like many populist right-side critiques of the Fed, of monetary control, that we’ve heard throughout history.”Mr. Powell has stated that the Fed “would not proceed” on a digital currency “without support from Congress.”T.J. Kirkpatrick for The New York TimesWhile Mr. DeSantis’s Fed-bashing is not new, some of his remarks have strayed into misinformation, said Peter Conti-Brown, a lawyer and Fed historian at the University of Pennsylvania.“The Fed can and should take this seriously,” Mr. Conti-Brown said.While the Fed is independent of and largely insulated from the White House, it does ultimately answer to Congress. And a lack of popular support could curb the Fed’s room to maneuver: If the government decided that pursuing a digital currency was a good idea, for instance, the backlash could make it more difficult to do so.Mr. DeSantis’s tone could also offer hints about the future. Starting from the early 1990s, presidential administrations have largely respected the Fed’s independence, avoiding commenting on monetary policy. Mr. Trump upended that tradition. President Biden has returned to a hands-off approach, but the recent criticism offers an early hint that the détente may not last if a Republican wins in 2024.Mr. DeSantis has faulted Mr. Powell’s policies for failing to control inflation, recently calling the Fed chair a “complete disaster.”In Mr. Powell, the potential presidential candidate has a rare opportunity to criticize Mr. Trump and Mr. Biden simultaneously: The Fed leader was first nominated to the central bank by President Barack Obama, then made chair by Mr. Trump and renominated as chair by Mr. Biden.Mr. DeSantis has focused much of his attention on a central bank digital currency, or C.B.D.C., which would operate like electronic cash but with backing from the federal government. The Fed has been researching both the potential uses and technical feasibility of a digital currency, but has not yet decided to issue one. Mr. Powell has made clear that the Fed “would not proceed with this without support from Congress.”The digital money that Americans use today — whether they are swiping a credit card or completing a Venmo transaction — is issued by banks. Physical cash, by contrast, comes directly from the Fed. A central bank digital currency would effectively be the digital version of a dollar bill.Many people who think the Fed should seriously consider issuing a central bank digital currency suggest that it could help improve access to banking services. Some have argued that it is important to develop the technology: America’s global competitors, including China, are researching and issuing digital money, so there is a risk of falling behind.Yet critics have worried about the privacy concerns of a centralized digital dollar. And the dollar is the most important reserve currency in the world, so any technological issues with a digital offering could be catastrophic. That is why the Fed has pledged to proceed carefully — and why the idea of issuing a digital currency in America is only in its formative research stages.Though there is no plan to issue a digital currency, Mr. DeSantis on March 20 proposed state legislation to “protect Floridians from the Biden administration’s weaponization of the financial sector through a central bank digital currency.”He then warned during an April 1 speech, with no factual basis, that Democrats wanted to use a digital currency to “impose an E.S.G. agenda,” referring to environmental and social goals like curbing consumption of fossil fuels or tightening gun control.Mr. DeSantis “is heading off any attempt to control people’s behavior through centralized digital currency,” his press secretary, Bryan Griffin, said in response to a request for comment.Mr. DeSantis’s claims echo those on right-wing social media, and they are in line with the interests of important Republican donors: Many banks and cryptocurrency firms are adamantly opposed to the idea of a central bank digital currency, worried that it would take away business.Florida, in particular, has been friendly to the digital currency industry, with lawmakers passing favorable legislation.And people with stakes in cryptocurrency are among Mr. DeSantis’s top political donors. Kenneth Griffin, the billionaire hedge fund executive and crypto skeptic turned investor, gave $5 million to a political action committee that supported Mr. DeSantis’s 2022 re-election. Paul Tudor Jones, a billionaire investor who had significant shares in the now-bankrupt crypto trading platform FTX, contributed $850,000 to the group, according to campaign finance filings.Nor is it just Mr. DeSantis who is expressing opposition to the idea of a central bank digital currency: Prominent Republicans like Senator Ted Cruz of Texas and Representative Marjorie Taylor Greene of Georgia have joined in.Mr. Cruz and Representative Tom Emmer of Minnesota, the Republican whip, have introduced legislation to block the Fed from creating such a currency. Gov. Kristi Noem of South Dakota, another potential Republican presidential contender in 2024, recently vetoed a state bill that she claimed would have opened the door for a C.B.D.C.Some political figures are also incorrectly conflating a possible central bank digital currency with the central bank’s FedNow initiative, a separate effort to modernize America’s payment system to make transactions quicker and more efficient. A Fed spokesperson underlined that FedNow and the research into a possible digital currency were entirely different.Robert F. Kennedy Jr., a prominent figure in the anti-vaccine movement who recently announced his intention to run for president as a Democrat in 2024, wrongly conflated FedNow and the digital currency, claiming that it would “grease the slippery slope to financial slavery and political tyranny.”Tulsi Gabbard, a former Democratic presidential candidate and representative from Hawaii who is now independent, echoed warnings that a digital currency would undermine freedom, incorrectly stating that the government “has just begun implementing” such a currency.Incorrect statements about FedNow and digital currency have proliferated on social media, spread by influential political figures as well as conspiracy theorists.The Fed has tried to push back on the swirling misinformation.“The FedNow Service is neither a form of currency nor a step toward eliminating any form of payment, including cash,” the central bank posted on Twitter on Friday. Its six-tweet F.A.Q. made no mention of politics, but nevertheless read like a rare public rebuke from an institution that diligently avoids wading into political commentary.“The Federal Reserve has made no decision on issuing a central bank digital currency (CBDC) & would not do so without clear support from Congress and executive branch, ideally in the form of a specific authorizing law,” the Fed said — in a tweet that Mr. DeSantis quoted.“It is not merely ‘ideal’ that major changes in policy receive specific authorization from Congress,” Mr. DeSantis said in a reply.By Tuesday afternoon, the Fed had updated its F.A.Q. online to be even more explicit: The central bank “would only proceed with the issuance of a CBDC with an authorizing law.” More

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      Sam Bankman-Fried and Allies’ Political Donations Under Scrutiny by US

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      Federal prosecutors appear to be focusing on possible wrongdoing by cryptocurrency executives, rather than by Democratic or Republican politicians. But the inquiries widen an explosive campaign finance scandal.WASHINGTON — Federal prosecutors in Manhattan are seeking information from Democrats and Republicans about donations from the disgraced cryptocurrency entrepreneur Sam Bankman-Fried and two former executives at the companies he co-founded.In the days after Mr. Bankman-Fried was arrested on Monday and charged with violations including a major campaign finance scheme, the prosecutors reached out to representatives for campaigns and committees that had received millions of dollars from Mr. Bankman-Fried, his colleagues and their companies.A law firm representing some of the most important Democratic political organizations — including the party’s official campaign arms, its biggest super PACs and the campaigns of high-profile politicians such as Representative Hakeem Jeffries — received an email from a prosecutor in the United States attorney’s office for the Southern District of New York. The email sought information about donations from Mr. Bankman-Fried, his colleagues and companies, according to people familiar with the request, who insisted on anonymity to discuss an ongoing law enforcement matter.The prosecutors have reached out to representatives of other Democratic campaigns that received money linked to the cryptocurrency exchange FTX, which Mr. Bankman-Fried co-founded, according to two other people familiar with the matter. Prosecutors are also investigating donations to Republican campaigns and committees by another FTX executive who was a top financier on the right, according to a person familiar with the situation.So far, Mr. Bankman-Fried is the only executive to face charges. Since emerging as a leading political megadonor in the months before the 2020 election, he has donated nearly $45 million, primarily to Democratic campaigns and committees that are now scrambling to distance themselves.There has not been any suggestion that political campaigns and groups engaged in wrongdoing related to the donations they received. The Justice Department’s inquiries appear to be an effort to gather evidence against Mr. Bankman-Fried and other former FTX executives, rather than against their political beneficiaries.But the prosecutors’ requests widen what has quickly become one of the biggest campaign finance scandals in years, as both Democrats and Republicans grapple with questions about their eagerness to tap into a stream of cash from a murky and largely unregulated industry that emerged suddenly as a powerful political player.The fallout has been swift and is only growing, as lawmakers, operatives for political action committees and their lawyers try to minimize the damage.Some politicians — including Mr. Jeffries, the incoming Democratic leader in the House, and Representative-elect Aaron Bean, a Republican from Florida — either returned donations linked to FTX or gave the money to charity after the company became embroiled in scandal. Other groups say they are setting the cash aside for possible restitution to victims of the alleged scheme.Prosecutors said FTX was a “house of cards” through which Mr. Bankman-Fried and others diverted customer money to buy expensive real estate in the Bahamas, invest in other cryptocurrency firms, provide themselves with personal loans and make political contributions of tens of millions of dollars intended to influence policy decisions on cryptocurrency and other issues.What to Know About the Collapse of FTXCard 1 of 5What is FTX? More

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      Restaurateur, Political Donor, Tipster: The Many Roles of FTX’s Ryan Salame

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      The co-chief executive of an FTX unit who told regulators about wrongdoing at the exchange was a big Republican donor. He also bought restaurants.In Western Massachusetts, Ryan Salame was known as a local boy turned hometown hero who struck gold as a top executive at FTX, the now-collapsed cryptocurrency exchange, and used some of that wealth to buy a few small restaurants in the area.In Washington, D.C., Mr. Salame was hailed as a “budding Republican megadonor,” bankrolling candidates and political action committees, and establishing FTX’s presence as a crypto heavyweight invested in shaping the regulation of the nascent industry.Now, Mr. Salame has emerged as a central player in the scandal surrounding FTX after he told regulators in the Bahamas, where the exchange was based, that FTX was misappropriating billions in customer funds to prop up an allied crypto trading firm called Alameda Research.On Monday, Sam Bankman-Fried, the founder of FTX, was arrested in the Bahamas, accused of lying to investors, lenders and customers about the close financial dealings between FTX and Alameda, and committing fraud by using both companies as a “piggy bank.” Prosecutors said Mr. Bankman-Fried used customer funds to trade, buy expensive real estate, invest in other crypto firms, make political contributions and extend personal loans to executives.So far, Mr. Bankman-Fried, who is being held without bail in a Bahamas prison, is the only FTX executive charged with wrongdoing. But Damian Williams, the U.S. attorney for the Southern District of New York in Manhattan, said the investigation is continuing and prosecutors are not done charging individuals.Mr. Salame’s activities may be scrutinized, given that he was pivotal to FTX’s political influence operation along with Mr. Bankman-Fried. Mr. Salame, a former co-chief executive of FTX Digital Markets, the company’s subsidiary in the Bahamas, also received a $55 million personal loan from Alameda.Mr. Salame (pronounced Salem) did not return multiple requests for comment. His lawyer, Jason Linder at Mayer Brown, also did not return requests for comment.Born in Sandisfield, Mass., a town of just 1,000 people in the Berkshires, Mr. Salame worked briefly at the accounting giant EY. In 2019, he graduated from Georgetown University with a master’s in finance before landing a job at Alameda in Hong Kong. He later moved to FTX in the Bahamas, where he was a primary point of contact between the exchange and the local government.Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, was arrested in the Bahamas on Monday.Mario Duncanson/Agence France-Presse — Getty ImagesMr. Salame was not in Mr. Bankman-Fried’s inner circle, but he was fiercely loyal to him, according to people familiar with the matter. Mr. Bankman-Fried and his closest advisers all shared a purported commitment to giving away most of the money they made under the banner of “effective altruism.”By contrast, Mr. Salame said at times that he was in crypto because it was a way to get rich, according to a person who knows him. He enjoyed expensive cars, flew on private jets and had a reputation for hard partying.What to Know About the Collapse of FTXCard 1 of 5What is FTX? More

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      Warnock’s Narrow Victory Over Walker in Georgia

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      More from our inbox:Trump’s Very Bad DayThe Crypto IllusionEncourage BreastfeedingFood Buying That Reflects Our Values Nicole Craine for The New York TimesTo the Editor:Re “Warnock Victory Hands Democrats 51st Seat in Senate” (front page, Dec. 7):Although I am relieved that Senator Raphael Warnock prevailed in the Georgia runoff, I am absolutely disgusted that this election was so close.We have lost our way as a country when we do not see that political leadership takes skill; knowledge of the law, the Constitution and history; the ability to negotiate and cooperate; and a worldview that is larger than your own.I would not be at all qualified to play professional football, and it was clear from the start that Herschel Walker did not have the knowledge or skill to be a U.S. senator.Dawn MenkenPortland, Ore.The writer is the author of “Facilitating a More Perfect Union: A Guide for Politicians and Leaders.”To the Editor:I have new respect for Herschel Walker: He gave a concession speech. He declared that he lost. He called on his supporters to respect their elected officials and to believe in America. He said he had no excuses for his loss because he put up a good fight. This probably reflects both who he is and his football heritage — you win but also lose games fair and square.He may have helped us back to the old pre-Trump norms. We may disagree with his views and abhor his scandals, but the most important thing is that he believes in democracy. Let’s hope Donald Trump watched that concession speech.When Mr. Walker said, “I want you to believe in America and continue to believe in the Constitution and believe in our elected officials most of all,” it could be the biggest takeaway of the election.James AdlerCambridge, Mass.To the Editor:Raphael Warnock was extremely lucky to win the Senate race in Georgia — lucky because he faced an opponent plagued by ignorance, myriad character flaws and an endorsement by Donald Trump. Almost certainly, a moderate Republican, Black or white, could have defeated Mr. Warnock, perhaps by a margin as large as the seven-plus percentage points that Brian Kemp scored over Stacey Abrams for the Georgia governorship just four weeks earlier.I am very happy about Mr. Warnock’s win, but it should not be interpreted as signaling a major shift in the political landscape of Georgia.Peter S. AllenProvidence, R.I.To the Editor:Every time the Republicans lose an election — most recently Tuesday in Georgia — the Times coverage predicts that the party will engage in “soul-searching,” suggesting that the G.O.P. has a desire to change course. Yet, again and again, the party persists in its pandering to far-right, anti-democratic forces of white nationalism and heteropatriarchy.The G.O.P. has made its soul abundantly clear. Perhaps some Republican voters have done their own soul-searching and decided to reject what their party has become.Pamela J. GriffithBrooklynTo the Editor:As a liberal Democrat I am very pleased with the results of the Georgia runoff and most of the rest of the 2022 U.S. Senate results in competitive races. How do we make sure that Donald Trump continues to influence the choice of Republican candidates for Senate in 2024?Michael G. RaitenBoynton Beach, Fla.Trump’s Very Bad Day Jamie Kelter Davis for The New York TimesTo the Editor:Tuesday was a Trumpian negative hat trick: a defeat in the Senate runoff in Georgia, the conviction of the Trump Organization on tax fraud and other crimes, and a report of grand jury subpoenas from the special counsel to local officials in Arizona, Michigan and Wisconsin.Of course the Republican Party has neglected to take any prior offramps to dump Donald Trump, most notably Jan. 6, so unfortunately the latest Trump failures will probably go by the wayside too. And the G.O.P. of yore — the party of Lincoln, T.R. and Ike — will continue to be the clown car it has become.Bill MutterperlBeverly Hills, Calif.The Crypto IllusionFederal authorities are trying to determine whether criminal charges should be filed against the founder of the crypto firm FTX, Sam Bankman-Fried, and others over the company’s collapse.Winnie Au for The New York TimesTo the Editor:Re “‘It Just Angers Me.’ Crypto Crisis Drains Small Investors’ Savings” (front page, Dec. 6):Is it too early, or far too late, to suggest that “if it sounds too good to be true, it probably is” in relation to the FTX and BlockFi difficulties? Should this concern be extended to Bitcoin and cryptocurrencies in general?There was a time when people earned the coins in their wallets from the sweat on their brow rather than from a computer program most people can’t understand that creates imaginary coins to be stored in wallets that seem easy to rob or lose. It is, however, sad to read of people who have lost so much in such a short time.As a teacher, I wasn’t that well paid, and so I saved as much as I could to buy a house and set myself up for retirement by sensible, boring approaches. But the gains to be made from Bitcoin are in its questionable uses or in realizing the increase in its value before it drops. For me it seems to have no actual value or use, and I doubt that I am the only one who thinks that.It’s time for me to forget the world of imaginary computer profits and go back to a boring life on my unicorn farm.Dennis FitzgeraldMelbourne, AustraliaEncourage Breastfeeding Vanessa Leroy for The New York TimesTo the Editor:Re “What It Really Takes to Breastfeed a Baby” (news article, Dec. 6):As a pediatrician who spends many hours with new mothers and their babies discussing the challenges and difficulties that come with breastfeeding, I felt that this article was not as positive as it should have been. It focused on following mothers who were having a hard time keeping up their breastfeeding.These days, any literature or news related to breastfeeding should only be encouraging new mothers to breastfeed, not scaring them away from doing it and making it sound so hard while working and raising other children.In my practice, I share my own personal experiences of breastfeeding my three children, each for a year, while working in a busy pediatrics office. My stories are useful and effective in making the breastfeeding experience achievable to the new moms I meet.We need to reverse the steady decline of breastfeeding mothers in this country.Naomi JackmanPort Washington, N.Y.Food Buying That Reflects Our Values Pavel PopovTo the Editor:Re “Help Black Farmers This Holiday Season,” by Tressie McMillan Cottom (column, Nov. 30):New York State’s food procurement laws are an extension of the disenfranchisement of Black farmers. Provisions require that municipalities contract with farmers who sell their produce at the “lowest” cost. This often comes at the expense of small, hyperlocal farmers and bars them from entering negotiations for public contracts — meaning that opportunities to support historically marginalized food producers are currently limited in New York.The Good Food New York bill would democratize local food purchasing decisions by allowing municipalities to galvanize around racial equity, animal welfare, environmental sustainability, nutrition, local economies and workers’ rights — and contract with producers that uphold these values.It is more critical than ever to rectify the wrongs of this country’s past and prepare for a future where the strength of our food systems and supply chains will be tested by the consequences of climate change. New York State legislators, we are counting on you to make the right decision for our food futures.Ribka GetachewTaylor PateNew YorkThe writers are, respectively, director and campaign manager of the NY Good Food Purchasing Program Campaign for Community Food Advocates. More

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      in Elections

      Outside Money Floods New York Congressional Races

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      In a feverish House race across Manhattan, a dark-money super PAC has spent more than $200,000 reminding voters that an incumbent congresswoman, Carolyn Maloney, once indulged doubts about vaccines.Out east in Suffolk County, cryptocurrency interests have spent more than $1 million on ads disparaging a former Navy officer in a Republican primary for Congress and supporting his opponent, a cryptocurrency booster, according to AdImpact, an ad tracking firm.And in the city’s northern suburbs, a police union PAC has spent more than $200,000 on ads calling a Democratic candidate a “radical extremist” who “left her community crime-ridden.” Those grim warnings, delivered over a soundtrack of gunshots, breaking glass and crackling fire, target a state senator, Alessandra Biaggi, and benefit her opponent in the 17th Congressional District, Representative Sean Patrick Maloney, the chair of the Democratic Congressional Campaign Committee.A rising tide of lightly regulated outside money is pouring into New York State: As of Thursday, with the Aug. 23 primary date looming, outside entities have spent about $9 million in state congressional primaries, according to data maintained by Open Secrets, a government transparency group. In 2018, outside entities spent roughly $2.6 million.Some of the players are familiar, including real estate and police groups. Others, like the super PAC targeting Ms. Maloney in the 12th District, have yet to identify their donors. The treasurer for that PAC, Brandon Philipczyk, did not respond to requests for comment. Berlin Rosen, a New York consultancy, is also involved.The thrust of the ad campaign taking aim at Ms. Maloney mirrors the messaging that her chief primary opponent, Representative Jerrold Nadler, has put in his campaign website’s so-called red box. Campaigns use language hidden in such boxes on their websites to communicate indirectly with super PACs that might support them.A spokesman for the Nadler campaign declined to comment.“I am disappointed that my colleague and friend, Congressman Nadler, has resorted to using dark-money funded attack ads against me to mislead voters in a desperate attempt to win this election,” Ms. Maloney said in a statement that also apologized for her past remarks on vaccines. “Voters are used to seeing these kinds of dirty campaign tactics from Republicans, but I expected more of Congressman Nadler.”In New York City’s other marquee House primary contest, for the 10th Congressional District encompassing parts of Brooklyn and Lower Manhattan, money also looms as a factor, but much of it is coming directly from one of the leading candidates, Daniel Goldman.Mr. Goldman, the heir to the Levi Strauss fortune who prosecuted the first impeachment case against Donald J. Trump, has put at least $4 million of his own money into the race.Daniel Goldman has put at least $4 million of his own money into the race for Congress in the 10th District.Anna Moneymaker/The New York TimesBut super PAC money is also playing a role in the race. A new super PAC called New York Progressive, Inc. has begun distributing literature targeting Yuh-Line Niou, a left-leaning state assemblywoman, for opposing an affordable housing development for seniors — part of a $225,000 expenditure. The treasurer of the PAC, Jeffrey Leb, typically raises money for such efforts from real estate interests. He declined to comment.And on Thursday, a super PAC called Nuestro PAC announced it would spend half a million dollars on behalf of one of Ms. Niou’s rivals, Carlina Rivera.North of the city, Mr. Maloney is benefiting from expenditures by the Police Benevolent Association of the City of New York, which endorsed Mr. Trump’s re-election campaign. More