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Lawyers for collapsed crypto exchange FTX said on Tuesday, in the company’s first bankruptcy hearing, that regulators from the Bahamas, where FTX was headquartered, have agreed to consolidate proceedings in Delaware.

FTX’s lawyers, who were brought in by new leadership to handle restructuring, filed an emergency motion last week to secure the move to the U.S. The hearing on Tuesday was the initial step in the resolution of the largest cryptocurrency bankruptcy on record.

“What we are dealing with is a different sort of animal,” said FTX counsel James Bromley. “Unfortunately, the FTX debtors were not particularly well run, and that is an understatement.”

Regarding FTX’s founder, this was an organization that was “effectively run as a personal fiefdom of Sam Bankman-Fried,” an FTX attorney told the court.

FTX lawyers confirmed earlier reports that the Southern District of New York’s Cyber Crimes unit has begun an investigation into the matter. FTX lawyers have also made reference to cyberattacks, suggesting there were multiple attacks beyond the $477 million hack that occurred shortly after the company entered bankruptcy on Nov. 11. In that attack, hackers extracted ether out of FTX wallets.

The central challenge for the new team is “working to bring order to disorder,” Bromley told the court. After introducing his fellow counsel, Bromley dove into what FTX has been doing to understand the complex morass of data and finances left behind by FTX and Bankman-Fried, who was replaced by restructuring expert John Ray III.

Bankman-Fried exercised a level of control over the business that “none of us have ever seen,” Bromley said, referring to the bankruptcy experts and attorneys the company has employed as part of the restucturing process.

FTX had been valued by private investors at $32 billion earlier this year, and Bankman-Fried was making himself out to be an industry savior during the crypto winter.

“The FTX situation is the latest and the largest failure in this space,” Bromley said. “There was effectively a run on the bank, both with respect to the international exchange […] as well as the U.S. exchange. At the same time that the run on the bank was occurring, there was a leadership crisis […] The FTX companies were controlled by a very small group of people, led by Mr. Sam-Bankman-Fried. During the run on the bank, Mr. Fried’s leadership frayed, and that led to resignations.”

FTX has just begun to implement “standard” risk and data management practices, he said. As part of the process, lawyers had earlier to approve roughly $1 million in salary expenses for existing FTX employees.

The process is designed to get as much as possible for creditors, Bromley said.

“It is essential that we first maximize the value of the assets we have, whether that means selling assets, selling businesses or restructuring businesses,” he said. “All of that is on the table.”

FTX customers had a global presence, but many were based in tax havens. The largest geographic areas represented included:

  1. Cayman Islands — 22% of registered customers.
  2. U.S. Virgin Islands — 11% of registered customers.
  3. China — 8% of registered customers.

“We will be before you quite quickly with an attempt to sell certain of the business that we understand […] are self-sufficient and robust [with] interest from others,” Bromley added.

FTX lawyers said they’ve established four silos for the company’s assets and various entities. They are:

  • The WRS (West Realm Shires) silo, which controls and encompasses U.S. holdings.
  • The Alameda silo, which includes Alameda Research, Bankman Fried’s now defunct hedge fund.
  • The venture silo, which invested in crypto companies and startups.
  • The dot-com silo, which encompasses the international business, the bulk of FTX’s deposits.

Bromley said the asset recovery and protection efforts encompass not just crypto assets and currency, but “information.” The company has also brought on independent directors for the first time ever.

“A substantial amount of assets have either been stolen or missing,” Bromley said. “Additionally, “substantial funds appear to have been transfered from other silos to Alameda.”

A key aspect of the FTX crisis is around Alameda and the FTT token, a coin issued by FTX. Lawyers have walked through the history of FTX and affiliated companies, pointing at the creation of the FTT token in April 2019 and the foundation of the Alameda entities in November 2017.

Investments were made in the crypto and technology venture space, Bromley said, but almost $300 million was also spent on real estate in the Bahamas. That number is higher than previously reported, and Bromley said most of those purchases were home and vacation properties for senior executives.

Employees have left the company in droves. As of October 2022, the main FTX parent company had 330 employees around the world, with 127 in the U.S. Including the Australian businesses and FTX Digital Markets which had 190 employees, the global headcount was 520.

The best guess for the headcount now, according to FTX attorneys, is “around 260.”

This is a developing story. Please check back for updates.

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Salesforce CEO confirms 4,000 layoffs ‘because I need less heads’ with AI

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Salesforce CEO confirms 4,000 layoffs ‘because I need less heads' with AI

Salesforce CEO Marc Benioff participates in an interview at the World Economic Forum in Davos, Switzerland, on Jan. 22, 2025.

Chris Ratcliffe | Bloomberg | Getty Images

Salesforce has cut 4,000 of its customer support roles, CEO Marc Benioff recently said while discussing how artificial intelligence has helped reduce the company headcount.

Benioff revealed the layoffs during an interview published Friday on The Logan Bartlett Show podcast.

“I’ve reduced it from 9,000 heads to about 5,000, because I need less heads,” Benioff said while discussing the impact of AI on Salesforce operations.

Salesforce has been on the front lines of the AI revolution and has built what it calls an “Agentforce” of customer service bots.

“Because of the benefits and efficiencies of Agentforce, we’ve seen the number of support cases we handle decline and we no longer need to actively backfill support engineer roles,” Salesforce said in a statement Tuesday to NBC Bay Area.

The layoffs come after Benioff over the summer announced AI is doing up to 50% of the work at Salesforce, which is based in San Francisco.

Laurie Ruettimann, a human resources consultant, said AI is affecting jobs in several industries.

“There have been layoffs all over America directly attributed to AI,” Ruettimann said, adding anyone who wants to stay employed or looking for work needs to learn new skills.

“If your network could get you a job, it would have done it already. It would have done it yesterday,” Ruettimann said. “It’s on you to expand your vision, to expand your horizons and to meet new people.”

Analyst Ed Zitron said AI is being blamed by tech companies that over hired during the pandemic. The companies are now looking to lure investors by claiming to be more efficient, Zitron said.

“It’s just a growth at all costs mindset,” Zitron said. “The only thing that’s important is growth, even if it ruins people’s lives. Even if it makes the company worse and provides an inferior product.”

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Apple shares rise after judge rules Google can continue preload deals in antitrust case

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Apple shares rise after judge rules Google can continue preload deals in antitrust case

Tim Cook, CEO of Apple Inc., during the Apple Worldwide Developers Conference at Apple Park campus in Cupertino, California, on June 9, 2025.

David Paul Morris | Bloomberg | Getty Images

Apple shares rose more than 3% in extended trading Tuesday after a federal judge ruled that Alphabet may continue making payments to preload Google Search onto the iPhone.

Although Apple wasn’t a party in the search monopoly trial, the judge was considering remedies that would bar Google from paying billions per year to Apple to be the default search engine on the Safari browser on iPhones, Macs and iPads.

“Google will not be barred from making payments or offering other consideration to distribution partners for preloading or placement of Google Search, Chrome, or its GenAI products,” Judge Amit Mehta wrote in his decision.

“Cutting off payments from Google almost certainly will impose substantial — in some cases, crippling — downstream harms to distribution partners, related markets, and consumers, which counsels against a broad payment ban,” the decision continued.

The landmark case focused on Google’s dominance of the general search market, Google’s violations of the Sherman Act and the barriers to entry that the search engine erected.

However, the judge said that Google will be barred from entering or maintaining “any exclusive contract” related to preloading its search engine or key apps on devices, specifying that Google can’t bundle its Android services with Google search or condition revenue share agreements on the acceptance of other Google apps or services.

The decision said that Apple’s deal with Google to be the default search engine was “exclusive” because it established Google as the default out-of-the-box search engine.

But while Mehta put restrictions on Google making payments to ensure its products receive exclusive distribution, he fell short of banning those payments entirely, leaving open the possibility that the two companies could strike a new deal. The remedies would limit any revenue-sharing agreement to one year, according to the Department of Justice.

Apple did not immediately respond for a request for comment.

“Now the Court has imposed limits on how we distribute Google services, and will require us to share Search data with rivals,” Google said in a blog post. “We have concerns about how these requirements will impact our users and their privacy, and we’re reviewing the decision closely.”

The U.S. Department of Justice filed its suit against Google in 2020, alleging that Google kept its share of the general search market by erecting strong barriers for challengers, such as its default search deals. The U.S. District Court in Washington ruled last August that Google violated Section 2 of the Sherman Act. Eddy Cue, Apple’s senior vice president of software and services, testified on Google’s behalf about potential remedies.

Tuesday’s filing was the first time the judge had detailed his proposed remedies.

Analysts previously said that it may take years before Apple is forced to make changes in response to a Google suit ruling. Google has said it will appeal the ruling, and analysts say any remedies trial could last for up to two years. Google can also appeal the outcome of the remedies trial, and the Supreme Court can choose take a look at it once appeals are exhausted.

Google CEO Sundar Pichai (L) and Apple CEO Tim Cook (R) listen as U.S. President Joe Biden speaks during a roundtable with American and Indian business leaders in the East Room of the White House on June 23, 2023 in Washington, DC.

Anna Moneymaker | Getty Images

Default agreements

While Google contracts with companies such as Samsung and browser-maker Mozilla to be the default search engine on their platforms, the most important and biggest such “default agreement” deal is with Apple. Google paid all partners $26 billion in total to be the default search engine in 2021, according to documents discussed in court.

Google paid because it funnels traffic from Apple’s 1 billion iPhone users to its search engine, and the revenue is critical for the growth of Apple’s services business, which investors love because it is so much more profitable than hardware sales.

In addition to the licensing payments, Apple says that it uses Google because it’s the best search engine and that its priority is to offer the best tools to its customers.

Apple also has options if it cannot make Google the default search engine. Earlier this year, for example, Apple’s Cue said in court as a witness for Google that the iPhone maker is also considering adding AI search engines as options to its software.

“Cue’s testimony establishes that Google’s high revenue share payments deterred Apple from trying to capture for itself all the advertising rents that flow through the Safari browser’s default search box,” the judge wrote in Tuesday’s filing.

Apple’s revenue from Google is reported in its financials as advertising revenue, which is reported as part of the company’s Services business, which also includes AppleCare warranties, cloud services like iCloud, and digital content like apps and Apple Music.

WATCH: Federal judge rules Google does not have to divest Chrome

Federal judge rules Google does not have to divest Chrome

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Waymo starts testing in Denver, Seattle in bid to expand robotaxi service across U.S.

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Waymo starts testing in Denver, Seattle in bid to expand robotaxi service across U.S.

Waymo partners with Uber to bring robotaxi service to Atlanta and Austin.

Uber Technologies Inc.

Alphabet’s Waymo unit will begin test drives of its robotaxis in Denver and Seattle this week, with humans behind the wheel, the company said Tuesday.

“We will begin driving manually before validating our technology and operations for fully autonomous services in the future,” a company spokesperson said in an email. Waymo announced the tests in blog posts.

The autonomous vehicle venture aims to expand its driverless, ride-hailing service across the U.S. after already launching commercial operations in Austin, Texas, as well as Atlanta, San Francisco, Phoenix and Los Angeles.

In some markets, including Austin and Atlanta, Waymo’s driverless rides can only be hailed through the Uber app. In others, riders must use the company’s stand-alone Waymo One app to book a robotaxi.

Safety drivers, who are employees of Waymo, will man the steering and braking behind the test vehicles in Denver and Seattle. The company is also running similar tests with its robotaxis in New York, having recently obtained permits in the biggest U.S. market.

The company’s test fleet in Denver and in Seattle will include a mix of their fully electric Jaguar iPace and Geely Zeekr AVs.

Waymo told CNBC that it will have up to a dozen cars each in Denver and Seattle to start testing.

Waymo’s primary competition on the global stage is Baidu-owned Apollo Go in China, which operates driverless ride-hailing services across Asia. Meanwhile, Tesla has obtained a permit to operate a ride-hailing business in Texas, and is testing a manned robotaxi service in Austin and another in San Francisco.

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