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Sam Bankman-Fried denied bail

A magistrate judge in the Bahamas on Tuesday denied bail to FTX co-founder Sam Bankman-Fried, citing heightened flight risk, and said he should be remanded to Bahamian custody until February 8, 2023, hours after a U.S. federal criminal indictment against Bankman-Fried alleging a massive fraud at FTX was unsealed in New York City.

Bankman-Fried was arrested Monday evening by Bahamas law enforcement acting on a request from the United States Attorney for the Southern District of New York. Regulators from the Commodity Futures Trading Commission and the Securities and Exchange Commission also unveiled expansive allegations of fraud and deception by the onetime billionaire.

His legal team is planning to fight any extradition order, according to NBC News.

Bankman-Fried was charged with several counts in federal court, including wire fraud, securities fraud, money laundering, and campaign finance violations.

Reuters reported that Bankman-Fried lowered his head and hugged his parents, who are both Stanford Law professors. They have remained by his side throughout the ascent and stunning collapse of one of the world’s largest crypto exchanges.

Bankman-Fried’s parents were animated during the proceeding, at times laughing or putting their fingers in their ears, according to CoinDesk.

FTX’s collapse was precipitated when reporting by CoinDesk revealed a highly concentrated position in self-issued FTT coins, which Bankman-Fried’s hedge fund Alameda Research used as collateral for billions in crypto loans. Binance, a rival exchange, announced it would sell its stake in FTT, spurring a massive withdrawal in funds. The company froze assets and declared bankruptcy days later. Charges from the SEC and CFTC indicated that FTX had commingled customer funds with Bankman-Fried’s crypto hedge fund, Alameda Research, and that billions in customer deposits had been lost along the way.

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TSMC’s second-quarter profit soars nearly 61%, beating estimates as AI chip demand stays strong

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TSMC's second-quarter profit soars nearly 61%, beating estimates as AI chip demand stays strong

A motorcycle is seen near a building of the Taiwan Semiconductor Manufacturing Company (TSMC), which is a Taiwanese multinational semiconductor contract manufacturing and design company, in Hsinchu, Taiwan, on April 16, 2025.

Daniel Ceng | Anadolu | Getty Images

Taiwan Semiconductor Manufacturing Company on Thursday reported a near 61% year-on-year rise in second-quarter profit, beating estimates, as demand for artificial intelligence chips stays strong. 

Here are TSMC’s first-quarter results versus LSEG SmartEstimates:

  • Revenue: 933.80 billion New Taiwan dollars ($31.7 billion), vs. NT$931.24 billion expected
  • Net income: NT$398.27 billion, vs. NT$377.86 billion 

Second-quarter net profit hit a record high, according to Reuters.

TSMC’s net revenue in the June quarter rose 38.65% from a year ago to NT$933.80 billion, also beating estimates.

Advanced chips, with sizes 7-nanometer or smaller, accounted for 74% of TSMC’s total wafer revenue in the quarter. In semiconductor technology, smaller nanometer sizes signify more compact transistor designs, which lead to greater processing power and efficiency.

TSMC, the world’s largest contract chip manufacturer, has benefited from the megatrend towards AI as it gains from producing advanced processors for clients including Nvidia and Apple.

However, the company faces potential headwinds from the trade policy of the U.S. President Donald Trump, who has threatened steep “reciprocal tariffs” on Taiwan.

Taiwan faces 32% tariffs announced in April and is in the midst of trade talks with the U.S., according to local media reports. Trump earlier this month also warned of potential additional tariffs on semiconductors.

U.S. export controls have also restricted TSMC’s business with China, as well that of its key clients such as Nvidia and AMD. However, amid a thawing of trade relations between Beijing and Washington, Nvidia and AMD said earlier this week that they had received government assurances allowing them to ship products to China. 

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AI-generated music is going viral. Should the music industry be worried?

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AI-generated music is going viral. Should the music industry be worried?

The growing prevalence of AI music has caused a stir across the music industry, according to Keith Mullin, head of management and music industry course leader at the Liverpool Institute for Performing Arts.

Da-kuk | E+ | Getty Images

With more than 1 million monthly listeners on Spotify, psychedelic rock band The Velvet Sundown is raking in thousands of dollars and has the music industry asking itself tough questions 一 and they’re not about whether the ’70s are coming back. 

The “band” was recently confirmed to primarily be the work of generative artificial intelligence 一 something that had been heavily suspected in light of a suspiciously smooth and glossy image of its “band members” and derivative song titles like “Dust on the Wind.”

The Velvet Sundown’s bio on Spotify now clarifies that it is a “synthetic music project guided by human creative direction, and composed, voiced, and visualized with the support of artificial intelligence.” 

It adds, “This isn’t a trick – it’s a mirror. An ongoing artistic provocation designed to challenge the boundaries of authorship, identity, and the future of music itself in the age of AI.”

However, in CNBC’s conversations with various music professionals, descriptors like “soulless,” “stifling,” and “creepy” surfaced, as the industry grapples with the encroachment of AI. 

While AI tools have long been integrated into music software like Logic, newer AI-powered platforms such as Suno and Udio have made it easier than ever to generate entire songs based on nothing more than a few prompts and inputs. 

As a result, “The Velvet Sundown” is far from the only AI-generated artist emerging online. There’s evidence that other upstarts like “dark country” musician Aventhis — with more than 600,000 monthly listeners on Spotify — are also a product of AI-generated voices and instruments. 

Meanwhile, France-headquartered music-streaming service Deezer, which deployed an AI detection tool for music in January, revealed in April that about 18% of all tracks now being uploaded to its platform are fully generated by AI.

AI music tech advances 

The quality and originality of AI music have often been criticized, but experts say that as generative AI becomes more sophisticated, it’s becoming harder and harder for the average listener to distinguish between human and machine.

“[The Velvet Sundown]” is much better music than most of what we’ve heard from AI in the past,” Jason Palamara, an assistant professor of music technology at the Herron School of Art and Design, told CNBC. 

“Early versions could be used to make catchy, repetitive hooks … But we’ve gotten to the point where AI is putting out songs that actually make sense structurally, with verses, choruses and bridges,” Palamara said. 

He said The Velvet Sundown is likely just the “tip of the iceberg” of what’s coming. Suno and Udio — the current “gold standard” of genAI platforms — come with few to no barriers to entry, allowing anyone to create hundreds of AI tracks in one sitting. 

Both AI platforms offer free access, as well as premium subscriptions priced at about $30 or less a month.  

But while creating an AI song can be done for free, that doesn’t mean it can’t generate revenue. The Velvet Sundown has made about $34,235 over a 30-day period across all audio streaming platforms, according to estimations from ChartMasters’ streaming royalties calculator.

Because of that, it’s easy to see why AI creators might want to flood streaming platforms with as much generated music as possible, hoping to go viral. 

‘We can’t predict yet’

The growing prevalence of AI music has caused a stir across the music industry, according to Keith Mullin, head of management and music industry course leader at the Liverpool Institute for Performing Arts. 

“It’s the hot topic of the moment, especially in relation to copyright and digital service providers like Spotify,” said Mullin, who is also the guitarist for Liverpool rock band The Farm. 

Major record labels such as Sony Music, Universal Music Group, and Warner Records have launched lawsuits against Suno and Udio, accusing them of mass copyright infringement. Meanwhile, thousands of musicians and creatives have called for a prohibition on using human art to train artificial intelligence without permission.

Nevertheless, Mullin said generative AI on music is here to stay. “I don’t think we can turn the clock back,” he said, noting that music and its business models are ever changing. 

For a band that doesn’t even really exist to then get all that social media traction, it’s so discouraging.

Tilly Louise

U.K.-based alternative pop artist

Indeed, the music business is no stranger to big technology shifts — events like the introduction of Napster in 1999 and the proliferation of music-streaming platforms in the 2000s shook up the industry, forcing major adaptations. 

Still, the notion of competing with AI bands is causing anxiety for budding musicians like Tilly Louise, a U.K.-based alternative pop artist who said it’s already hard enough for small performers to gain traction and generate income from online music.

Despite accumulating millions of streams on Spotify, Louise, 25, said she’s never made nearly enough money from streaming platforms to live on, and currently works a full-time job. 

“For a band that doesn’t even really exist to then get all that social media traction, it’s so discouraging,” she added. 

To prepare young artists for the changing music environment, music professors said, they’ve increasingly been working AI into their lesson plans, aiming to teach students how to use the technology to enhance their creative process and music production, rather than replace it. 

Some established producers have also leaned into the trend. Last month, Grammy-winning artist and producer Timbaland launched an AI-focused entertainment venture, called Stage Zero, which will feature an AI-generated pop star. 

“Other producers are going to start doing this … and it will create a completely different model of the music industry that we can’t predict yet,” Palamara said. He added, however, that he does think the trend will make earning money as an artist online even harder.

The trend is also expected to continue to receive backlash not only for its impact on artists, but also for what it could mean for music consumers. 

“[M]usic fans should be worried because the proliferation of AI music and content clogs our social media feeds and algorithms, making it difficult for us to connect with one another,” Anthony Fantano, a prominent music critic and internet personality on YouTube, told CNBC in a statement. 

“AI art offers nothing that humans themselves can’t already do better,” he said, adding that it’s a way for “greedy capitalists” to cut out actual artists.

Aside from calling for better copyright protections for artists when it comes to the training of AI, music groups are asking that AI-generated music be labeled as such. Spotify did not respond to an inquiry from CNBC regarding its generative AI detection and labeling policies. 

In a statement to CNBC, Tino Gagliardi, president of the American Federation Of Musicians of the United States and Canada, urged creators, those in the tech industry, lawmakers, and music fans­ to stand together in support of human creativity and authorship.

“Consent, credit, and compensation are prerequisites in AI development. And transparency, including in streaming and other marketplaces, is the foundation for safeguarding musicians’ livelihoods. Anything short of that is theft.”

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Coinbase steps into consumer market with stablecoin-powered ‘everything app’ that goes beyond trading

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Coinbase steps into consumer market with stablecoin-powered 'everything app' that goes beyond trading

Dominika Zarzycka | Nurphoto | Getty Images

Coinbase unveiled Wednesday an “everything app” designed to bring more people into the crypto economy.

The “Base App,” which replaces Coinbase Wallet, will combine wallet, trading and payment functions as well as social media, messaging and support for mini apps – all running on the company’s homegrown public blockchain network Base, which is built on Ethereum.

So-called super apps like WeChat and Alipay – which bundle several different services and functionalities into a single mobile app – have long been viewed as the holy grail of fintech by the industry. They’re central to everyday life in China but haven’t been successfully replicated in the West. Meta Platforms and X have made attempts to realize that vision, integrating payments, messaging and social content, among other things.

For Coinbase, the intent is to expand its reach to a new subset of consumers who aren’t necessarily interested in buying or trading crypto, the company’s core business. Over-reliance on that revenue stream has been a sticking point for the company, and some analysts view the Base blockchain as a way for it to drive utility in crypto beyond speculative trading.

As part of the Base App launch, Coinbase also rolled out two key functions meant to help power it: an identity verification system called Base Account and an express checkout system for payments with the Circle-issued USDC stablecoin, called Base Pay.

Base Pay is a one-click checkout feature for USDC payments across the web, developed with Shopify. At the end of the year, Coinbase plans to bring Base Pay to brick-and-mortar stores with tap-to-pay support. Alex Danco, product manager at Shopify, said at Coinbase’s unveiling event that the function has been turned on for tens of thousands of its merchants this week, and will roll out to every merchant by the end of the year. Shopify will also offer 1% cash back in the U.S. for users who pay with USDC on Base later this year, he said.

Until now, enthusiasm around the Base network has been confined to builders and developers keen to use the technology. In perhaps the highest profile example, JPMorgan said last month that it’s launching a so-called deposit token on the Base blockchain.

Base is often touted for its ability to settle a payment in less than a second for less than a cent, which its fans expect will help the network grow in a way other crypto-based payments efforts haven’t.

Now, Coinbase hopes to tap into an opportunity to settle payments on the Base network that go beyond trading and payments. With the introduction of the everything app, the company is emphasizing the opportunity for a new economic model for content creators in particular – one that might give them more direct and diverse monetization options for their content as well as more control over their identity and data.

Coinbase will fund creator rewards and waive USDC transaction fees within chats in the app as part of the effort to bring more users on chain. It is not expected to generate significant revenue right away.

The new consumer app comes as the crypto industry and Coinbase, in particular, embrace a boom in product launches and rollouts thanks to the pro-crypto policies of the Trump administration and more clearly defined crypto regulations expected from Congress — perhaps as soon as this week. Last month Coinbase launched its first credit card with American Express and Shopify rolled out USDC-powered payments through Coinbase and Stripe.

Coinbase CEO Brian Armstrong has said both have a “stretch goal” to make USDC the number 1 stablecoin in the world, a position currently held by Tether’s USDT, and that he aims to make Coinbase “the number one financial services app in the world” in the next five to 10 years.

Don’t miss these cryptocurrency insights from CNBC Pro:

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