Speaker 1: We're from Marhart where innovation, money and power Collie in
Speaker 1: Silicon Valley, NBN.
Speaker 2: This is Bloomberg Technology with Caroline Hyde.
Speaker 3: And Ed Ludlow.
Speaker 4: I met Ludlow in San Francisco. Caroline Hyde is off.
Speaker 4: This is Boomberg Technology. Coming up, we'll have full coverage
Speaker 4: of the sentencing of Sam Bankman freed as the FTX
Speaker 4: founder faces up to half a century in prison. Plus,
Speaker 4: Amazon boosts its investment in AI startup Andthropic. We're nearly
Speaker 4: three billion dollars of cash infusion. We sit down with
Speaker 4: AWS to discuss, and we sit down with the CEO
Speaker 4: of Walgreens as the company enters its reinvention era. What
Speaker 4: does that mean for AI digital offerings and competition with Amazon?
Speaker 5: We will discuss.
Speaker 4: Welcome to your final trading day of the first quarter
Speaker 4: of twenty twenty four. The NASDAK one hundred is my
Speaker 4: go to a very tech heavy index, a high concentration
Speaker 4: of the megacaps and higher multiple software names. We are
Speaker 4: headed for back to back quarterly gains, two straight quarters
Speaker 4: of gains on the NASDAQ one hundred for the first
Speaker 4: time since.
Speaker 5: June of last year.
Speaker 4: You know, the big story and video is the best
Speaker 4: performer more than eighty percent game year to date, but
Speaker 4: also other chip names like Micron, where we're talking about
Speaker 4: the infrastructure build out that is supporting AI development and
Speaker 4: we're seeing more beneficiaries participate in this technology stock rally.
Speaker 5: There are other names in there as well.
Speaker 4: Door Dash, Meta and ASML are some of the top
Speaker 4: performers year to date on the Nasdaq one hundred. We
Speaker 4: will continue to check on the markets, but I'd note
Speaker 4: that in the session the Nasdaq one hundred is basically
Speaker 4: flat this Thursday, and what's a shortened trading week here
Speaker 4: in the United States. Let's get to our top story.
Speaker 4: The judge presiding over Sam Bankman Freed's sentencing will today
Speaker 4: decide the future of the fallen crypto mogul. Prosecutors are
Speaker 4: seeking a sentence of forty to fifty years for what
Speaker 4: they have called, quote likely the largest fraud of the
Speaker 4: last decade. Bloomberg's David Gura is on the ground outside
Speaker 4: of the courthouse in New York City. David, what is
Speaker 4: happening right now as we speak.
Speaker 1: And this is a pivotal moment. Sam Bankman Freed is
Speaker 1: on the stand addressing the court. We had a variety
Speaker 1: of litigation about sentencing guidelines, what the judge might or
Speaker 1: might not do. Prosecution and defense are allowed to speak,
Speaker 1: so is the defendant. He's taken that opportunity, and he's
Speaker 1: not speaking from notes. He's giving a discursive, off the
Speaker 1: cuff address to the court. And an open question going
Speaker 1: into today's proceedings was how much remorse is Sam Bankman
Speaker 1: Freed going to show? And he started off by saying,
Speaker 1: I know a lot of people feel really let down.
Speaker 6: I'm sorry about that. I'm sorry about what happened.
Speaker 1: At every stage from there though, ed we were turned
Speaker 1: to the Sam bankmin Freed I think a lot of
Speaker 1: us are familiar with, and that's somebody who has been
Speaker 1: grousing about the way this company fell apart and what
Speaker 1: happened in the weeks that followed, the role that bankruptcy
Speaker 1: lawyers have been playing, and again familiar arguments about how
Speaker 1: they mishandled the way that the company was structured, handled
Speaker 1: the recovery of assets, and rebuffed his entreaties to help
Speaker 1: with that restructuring process. So what began as sort of
Speaker 1: a glimpse of some remorse turned into that and was
Speaker 1: sandwiched at the end by him saying at the end
Speaker 1: of the day, I was responsible. But pouring over these
Speaker 1: sentencing memos post from the defense and the prosecution, again,
Speaker 1: what was so glaringly missing from the defense's submission was,
Speaker 1: and I'm sorry, an admission of the fact that he
Speaker 1: in fact orchestrated this massive fraud. And so this is
Speaker 1: continuing out inside the courtroom behind me up on the
Speaker 1: twenty sixth floor in Judge Lewis Kaplan's courtroom. Again, we
Speaker 1: might hear from the prosecution on the heels of this.
Speaker 1: We have heard from the defense. Then after that it's
Speaker 1: up to the judge to sentence him based on, yes,
Speaker 1: the two submissions from these sides, and the federal guidelines
Speaker 1: that he has a.
Speaker 4: Disposal guidelines, I mean, the defense wishing for a sentence
Speaker 4: of six and a half years, the prosecution want a
Speaker 4: sentence of between forty and fifty years. What are the
Speaker 4: fact is that the judge has to consider. You know,
Speaker 4: I've got some experience in the outcome of white collar
Speaker 4: crime or fraud trials where there are guidelines in place,
Speaker 4: But the judge is at the center of this and
Speaker 4: has some discretion, so to speak.
Speaker 1: So let me catch you up on what he had
Speaker 1: to say about something that's said the crux of the
Speaker 1: defense's argument that is that there are effectively no losses here,
Speaker 1: that the bankruptcy recovery has gone so well thus far
Speaker 1: that the fraud has been kind of minimized in their eyes.
Speaker 1: He rejected that out of hand, rejected that argument from
Speaker 1: the defense, And we did hear very compelling testimony from
Speaker 1: Sam Bekminfried's new lawyer, Mark mccasey, about Sam Bekmanfried, who
Speaker 1: he is, who he was, what's animated him? He said, really,
Speaker 1: he's an awkward math nerd. So again, this is a
Speaker 1: phrase that we'd heard from time memorial, going back to
Speaker 1: when he was running FTX, and he has this kind
Speaker 1: of social awkwardness. He said, Sam has lost everything. Losing
Speaker 1: the people in your life and being shamed by the
Speaker 1: entire globe seems to me enough specific deterrence. So they're
Speaker 1: looking at him in compliment with other fraudsters throughout time,
Speaker 1: Ed Bernie Madoff, of course, Elizabeth Holmes, and they're kind
Speaker 1: of saying, look, he's a young man who had no
Speaker 1: criminal difficulties or issues before this. There's no need to
Speaker 1: be excessively punitive toward him. That's the argument they're making
Speaker 1: to the judge. It's the argument they made in that
Speaker 1: sentencing filing. It's unclear how resonant that's going to be
Speaker 1: with the judge. I will say he has been palpably
Speaker 1: irritated by Sam Begmanfree throughout the course of this process,
Speaker 1: going to the beginning before the trial, to the pre
Speaker 1: trial hearings when we saw Sam Begmanfree kind of flouting
Speaker 1: the rules that had been put in place on his
Speaker 1: house arrest.
Speaker 4: Been both David Geris stay close to the camera. We
Speaker 4: will bring our audience real time updates as we get
Speaker 4: them from inside the courthouse. Let's keep a conversation going.
Speaker 4: Joining us now is Christine Adams, a partner at Adams,
Speaker 4: Dirk and Camenstein as health of experience as a federal
Speaker 4: prosecutor working across SEC investigations white collar crime. Christine, you
Speaker 4: heard the latest from David who is outside of the courthouse.
Speaker 4: Based on what we know, the backstory that David outlined,
Speaker 4: what is your expectation for the sentencing in this case.
Speaker 2: It's hard to say, because I think the challenge here
Speaker 2: is mister Bankman, Fred is such a young man.
Speaker 7: He's only thirty two years old.
Speaker 2: And when you look at the other comparable types of cases,
Speaker 2: including Elizabeth Holmes and Bernie made Up.
Speaker 7: Elzabeth Holmes, she's forty now and.
Speaker 2: She was sentenced to eleven years, so that gets for
Speaker 2: the promise of a life outside of prison. Bernie made
Speaker 2: Off was sentenced to I think one hundred and fifty years,
Speaker 2: but he was seventy one years all the time and
Speaker 2: only served ten of those years before he passed away.
Speaker 2: The thing I do note, though, is that mister bankman
Speaker 2: Fried is not helping himself. The court has already determined
Speaker 2: that the law succeeds five hundred and fifty million dollars.
Speaker 7: There is this lack of remorse on mister bankman Freed's part.
Speaker 2: It doesn't help that the bankruptcy trustee and others were
Speaker 2: able to recover the assets. You can't argue that, well,
Speaker 2: I did tell you that your customer funds would be safe,
Speaker 2: and then I stole them. But then look, I invested
Speaker 2: them really well and made all of this money.
Speaker 7: That doesn't work under the law. The court is going
Speaker 7: to take into a lack of remorse. The court is
Speaker 7: going to has already taken into account.
Speaker 2: It's belief that he committed perjury and obstruction of justice
Speaker 2: and connection with this child. So whatever the court does
Speaker 2: aside the sentence mister Bankman Freed, it will not be.
Speaker 7: If the sentences at all.
Speaker 2: In mister Bankman Freed's favor, it will not be because
Speaker 2: of mister Bankman Freed.
Speaker 4: You know, having gone through law school myself and covered
Speaker 4: in my career at Bloomberg other fraud and white collar
Speaker 4: crime cases. There are guidelines and then there is the
Speaker 4: human element of the jig.
Speaker 5: You mentioned.
Speaker 4: Bernie Madoff and the prosecutors in this case with Sam
Speaker 4: Bankmin Freed in a court filing pushed for forty you
Speaker 4: to fifty years because of the financial loss they argued
Speaker 4: was suffered by FTX customers and investors, and they quoted
Speaker 4: that that figure was just below made off. Does the
Speaker 4: judge take that story, that historic story into account when
Speaker 4: forming the sentencing.
Speaker 7: They just take it all into account.
Speaker 2: The judge, I think, will take into account what the
Speaker 2: facts were with mister Madoff's fraud and how do they
Speaker 2: compare it in mister Begman Freez fraud. The challenger though,
Speaker 2: is again this lack of remorse on mister Megman Free's part.
Speaker 2: He's even at the hearing right now just saying he
Speaker 2: made some bad decisions, which is equivalents to mistakes were made.
Speaker 7: He's not taking.
Speaker 4: Well, Christine, that is on the final day of this story.
Speaker 4: Is it too little too late?
Speaker 5: In that sense?
Speaker 2: It's too little too late, and he's not even given
Speaker 2: any today.
Speaker 7: It would be very different if he were to come
Speaker 7: and say, listen, I'm very sorry. I lied.
Speaker 2: I told my customers one thing and did another. I
Speaker 2: told my investors one thing and did another. But he's
Speaker 2: not even doing that on this very day. So we're
Speaker 2: not even able to analyze whether it's too little too
Speaker 2: late because there's nothing today that he's offering.
Speaker 4: Yes, Christine, again, we're speaking with you because of the
Speaker 4: eleven years you did in the US Attorney's office in
Speaker 4: Los Angeles. You're an experienced former federal prosecutor. How much
Speaker 4: of this is about deterrence, sending a message that the
Speaker 4: sentence is put in place to dissuade others from any
Speaker 4: future actions similar to those that Sam Bankmin Freed carried out.
Speaker 2: Deterrence is especially important in this case because of the
Speaker 2: newness of the cryptocurrency industry and the fact that it
Speaker 2: is only just now being regulated. There obviously are a
Speaker 2: lot of companies in this space, and there is an
Speaker 2: argument to be made that with the elimination of FTX
Speaker 2: and Binance, many of the other cryptocurrency exchanges in this
Speaker 2: space have learned their lesson and are operating on a
Speaker 2: much more on board basis than these previous companies.
Speaker 7: So it's really.
Speaker 2: Important for the government to show novel industries, technologically complex
Speaker 2: industries that they can bring charges and effectively prosecute these
Speaker 2: cases in child by breaking it down into very simple
Speaker 2: facts that jurys can understand, which is, these companies said
Speaker 2: one thing and it turned out to be a lie
Speaker 2: and people were victimized and lost money as a whistle.
Speaker 4: Christine web will Sam Bankman Freed's trial and this story
Speaker 4: rank in the history of mythol of US white collar
Speaker 4: crime and fraud cases.
Speaker 7: I think it's going to be way up there.
Speaker 2: We still talk about Bernie Madoff and that was decades ago.
Speaker 7: I think the Bankman free case is going to be
Speaker 7: just like that.
Speaker 4: Partner at Adams, Dirk and Chemi Seine Christine Adams, an
Speaker 4: experience federal prosecutor, reflecting on Sam Bankman Freed's trial and
Speaker 4: sentencing today, which we will continue to bring you updates
Speaker 4: from the ground on.
Speaker 5: Thank you very much for your time.
Speaker 4: This is Bloomberg Technology and coming up next on the show,
Speaker 4: Amazon invests even more money in AI startup Anthropic. We
Speaker 4: have all the details with AWS VI president Vice president
Speaker 4: of AI Products Matt Wood. Interesting conversational, a lot of
Speaker 4: emphasis on the semiconductor side of this story as well
Speaker 4: as AWS and generative AI. This is Bloomberg Technology. Amazon
Speaker 4: is investing in an additional two point seventy five billion
Speaker 4: dollars in Anthropic, completing a deal it made last year
Speaker 4: to back the AIS startup and expand a partnership between
Speaker 4: the companies. It brings Amazon's total investment in Anthropic to
Speaker 4: four billion dollars. Joining us now is Matt Wood, who
Speaker 4: is the vice president of AI Products at Amazon Web Services.
Speaker 4: In AWS and Anthropic are becoming increasingly close and aligned
Speaker 4: financially but also operationally. I just want to explain to
Speaker 4: our audience Matt, that in September the initial investment was
Speaker 4: one point twenty five billion, and there was a March
Speaker 4: deadline to invest the rest of it because you'd pledged
Speaker 4: as much as four billion.
Speaker 5: You've followed through on that.
Speaker 4: So what is it that that Amazon and AWS saw
Speaker 4: in Anthropic that pushed you to commit?
Speaker 8: Well, thanks, Ed, appreciate you having me here.
Speaker 5: It's great to be here.
Speaker 2: You know.
Speaker 8: Anthropic are provider of what we call foundation models, and
Speaker 8: they are the very center of the generative AI revolution.
Speaker 8: This ability for the first time to be able to
Speaker 8: reason and integrate across very large amounts of information, to
Speaker 8: be able to build assistance and chatbots, but also completely
Speaker 8: reimagine every aspect of the customer experience. And Thropic have
Speaker 8: some of the best foundation models available anywhere today and
Speaker 8: it has been a delight to get to know that
Speaker 8: team more closely. And our investment really reflects the way
Speaker 8: that we're partnering very expansively with Anthropic to bring these
Speaker 8: remarkable foundation models that Anthropic caused Claud to customers across
Speaker 8: every single industry and every single use case. It's really
Speaker 8: been remarkable over the past year to watch so many
Speaker 8: customers from financial services like ADP and into It, manufacturing
Speaker 8: with Siemens, transportation with Delta Airlines, Puiser, in life sciences,
Speaker 8: at and telecom, just every industry that you can imagine
Speaker 8: starting to use these foundation models in order to be
Speaker 8: able to completely reimagine the experience. Now, Anthropic makes available
Speaker 8: Board three, which is currently the best performing set of
Speaker 8: foundation models available anywhere, and so we've been able to
Speaker 8: partner with them to bring those models to customers through
Speaker 8: AWS through a service we have called Bedrock, And we're
Speaker 8: also partnering to allow Anthropic, who have selected AWS as
Speaker 8: their primary cloud provider for their mission critical training workloads
Speaker 8: going forwards to optimize their workloads for our own custom
Speaker 8: silicon that we use for machine learning, which we call TRAININGUM,
Speaker 8: which is a specific chip designed to accelerate machine learning
Speaker 8: and artificial intelligence model training, and Inferentia, which is a
Speaker 8: specific chip designed to accelerate the prediction or the use
Speaker 8: places map of the foundation models.
Speaker 4: Let me jump in here. When this news broke yesterday
Speaker 4: on social media, for example, that the story and some
Speaker 4: people replied saying, this looks very much like a quid
Speaker 4: pro quo where Amazon or AWS invests in Anthropic, but
Speaker 4: Enthropic is required to use AWS compute and TRAININGUM and Inferentia.
Speaker 4: Can you kind of give me some numbers behind Anthropic's
Speaker 4: use of both of the proprietary chips from AWS have
Speaker 4: they started using this. How is the kind of onboarding
Speaker 4: of Anthropic operationally into AWS going.
Speaker 8: Yeah, As I say, the Anthropic of selected AWS, we're
Speaker 8: collaborating both on model training, but also the work that
Speaker 8: we're doing with Anthropic is helpful in how we develop
Speaker 8: the next generation of these pretty remarkable chips which provide
Speaker 8: better efficiency and better post profiles for training these very
Speaker 8: large foundation models. The investment in Anthropic is an equity investment.
Speaker 8: It's a convertible. Note we don't have a C on
Speaker 8: the board. We have no say in how that money
Speaker 8: gets spent, and so they can use that investment as
Speaker 8: they see fit.
Speaker 4: What's really interesting, and Enfropic have told us this on
Speaker 4: the program very recently, is that they are getting a
Speaker 4: lot of.
Speaker 5: Success through Bedrock.
Speaker 4: In getting their claud models out to enterprise commercial customers.
Speaker 4: What is Amazon and AWS getting from Anthropic and their
Speaker 4: activity from a kind of business volume perspective, you know,
Speaker 4: what is the benefit or the sales boost to AWS?
Speaker 8: Yeah, for sure. So Bedrock is our capability for making
Speaker 8: these foundation models available, and we make available models from Anthropic,
Speaker 8: and we also make available models from other providers including
Speaker 8: Amazon and other providers like stability for image generation. We
Speaker 8: have publicly available models from Meta and Mistrial and AI
Speaker 8: twenty one Labs and cohere and so on and so
Speaker 8: and so. What we found is that customers want to
Speaker 8: be able to access the best performing, most remarkable models
Speaker 8: in an environment which is private and secure, where their
Speaker 8: data is not reviewed by humans, does not go into
Speaker 8: training the underlying models, does not travel over the public Internet,
Speaker 8: and have all the additional capabilities which make you successful
Speaker 8: with generative AI, such as grounding these models in your
Speaker 8: own business data so they can answer questions on information
Speaker 8: that they haven't been trained on yet. And so that's
Speaker 8: what Badrock can enable the customers to do.
Speaker 5: Let's talk about chips, because you know that I love to.
Speaker 4: I think I'm right in saying you were at GtC,
Speaker 4: or of course you're aware of what was announcer at GtC,
Speaker 4: which is Blackwell and Thromics using Trainium and Inferentia.
Speaker 5: But just give me your and you are.
Speaker 4: An expert, give me your expert opinion and reaction to
Speaker 4: Blackwell and what you think you're up against there.
Speaker 8: Yeah, I mean Blackwell is a remarkable artificial intelligence plan
Speaker 8: form that combined GPUs and CPUs it's likely to be
Speaker 8: the absolute best beast providing machine learning training. And so
Speaker 8: what's really important, and our approach here maybe differs from others,
Speaker 8: is that optionality of compute and models really matters with
Speaker 8: generative AI, and so we make available in video GPUs.
Speaker 8: We were the first and we were the first to
Speaker 8: bring those GPUs to customers through AWS. We've got a
Speaker 8: very long, deep partnership with Nvidia that goes back nearly
Speaker 8: thirteen years. I've been on stage with Jensen, Jensen joined
Speaker 8: our conference. We've worked closely together for over a decade now.
Speaker 8: And in Vidia also run their own AI supercomputer on
Speaker 8: AWS that we're partnering to build together, which will have
Speaker 8: tens of thousands of Blackwell platforms connected together with very
Speaker 8: fast interconnects, which is going to deliver over four hundred
Speaker 8: exaFLOPS of compute power, so that n Video can build
Speaker 8: their own foundation models, simulate the Earth and so on
Speaker 8: and so forth, and so optionality really matters, and we're
Speaker 8: going to continue to build our own chips, We're going
Speaker 8: to continue to bring chips from other providers, and we're
Speaker 8: going to continue to invest and partner with n Video.
Speaker 4: That word Vice president of AI products at Amazon Web
Speaker 4: Service is really grateful for your time. And you know,
Speaker 4: I always love talking about AI accelerators and chips. Elon
Speaker 4: Musk's X is testing a feature let's users create or
Speaker 4: join community, so the focused on adult content or other
Speaker 4: not safe for work material, joining us with more as
Speaker 4: Bloombos Kirk Wagner, we talk about X wanting to be
Speaker 4: the everything app.
Speaker 5: This is a new area for them. What have you learned?
Speaker 2: Well?
Speaker 9: I think this sort of aligns with this idea that
Speaker 9: we've heard from Elon that you know, nothing is off
Speaker 9: limits really when it comes to.
Speaker 3: X unless it's illegal. Right.
Speaker 9: It's sort of a way I see to differentiate X
Speaker 9: from some of the other platforms. Now X has had
Speaker 9: you know, not safe for work content, usually we're talking
Speaker 9: about pornography, sexual content. It's had this for years. I
Speaker 9: had this well before Elon showed up. It didn't necessarily
Speaker 9: lean into it in the way that it seems like
Speaker 9: Elon is comfortable and willing to do. And again for me,
Speaker 9: I see this as a way for him to sort
Speaker 9: of differentiate X and and you know, hold the flag
Speaker 9: high that hey, look, anything goes here. That's been my
Speaker 9: mantra this whole time, and here I am to prove it.
Speaker 4: So, K, let's just WP me through the methodology of
Speaker 4: how we learned about this testing and feature. Right, this
Speaker 4: is not something that X is announced. Just just bring
Speaker 4: me your reporting.
Speaker 9: Sure, So got a tip from a guy, a researcher
Speaker 9: at Watchful. He is basically his is you know what
Speaker 9: he does. He goes and he finds unreleased features within
Speaker 9: these apps, and so he reached out with some screenshots
Speaker 9: and showed us that they're testing this. The way that
Speaker 9: it works is that if you're a user that's creating
Speaker 9: a community on exit, community is essentially just a group.
Speaker 9: You could go into settings and you could, you know,
Speaker 9: hit a button that says, hey, this group is going
Speaker 9: to contain adult content or not safe for work content.
Speaker 9: The group then gets a label to specify that. What
Speaker 9: we don't know is if they're going to age gate
Speaker 9: these groups. So X has rules that if you're under eighteen,
Speaker 9: you're not supposed to have access to adult content. Presumably
Speaker 9: that will apply to groups as well, But when we
Speaker 9: reached out to the company, they declined to comment and
Speaker 9: share any of the specifics with us.
Speaker 4: We just have fifteen seconds or so, but just remind
Speaker 4: me about your book.
Speaker 9: Oh thank you, Ed, Battle for the Bird, the story
Speaker 9: of Twitter and Elon Muskt's out right now. You know,
Speaker 9: it explains a lot of why we're here right now
Speaker 9: talking about this, so I hope people will pick it up.
Speaker 4: All right, bloom Vis Kat Wagner, I just wanted to
Speaker 4: make sure that you've got the opportunity to tell us
Speaker 4: that thank you very much for your time. Welcome back
Speaker 4: to Bloomberg Technology, Ed Lovelow here in San Francisco. As
Speaker 4: we said earlier in the show, it is the final
Speaker 4: trading day of the first quarter of twenty twenty four
Speaker 4: in the moment, this Thursday, this is what it looks like.
Speaker 4: And remember it's a short week here in the US
Speaker 4: Good Fridays a markets holiday. Then, as that one hundred
Speaker 4: is completely flat.
Speaker 5: There's some slightly better performance.
Speaker 4: Up three ten percent in the Philadelphia Semiconductor Index. Names
Speaker 4: I can VideA names like AMD and Intel pushing higher.
Speaker 4: Remember that in Nvidia is the best performer year to
Speaker 4: date both on the NASDAK one hundred index and the
Speaker 4: Semi Philadelphia Semiconductor Index.
Speaker 5: There are some news items going on.
Speaker 4: Walgreens is up a tenth for percent, had a strong
Speaker 4: quarter in the quarter gone, but trimmed its outlook for
Speaker 4: the fiscal year. The CEO of Walgreens will be joining
Speaker 4: us in just a few minutes time. What do you
Speaker 4: guys think about Walgreens? Message me on social media. I'd
Speaker 4: love to field your questions to the CEAE. We're also
Speaker 4: looking at the ADRs or the US listed shares of
Speaker 4: Chinese technology company Jaomi, because it's just unveiled a twenty
Speaker 4: nine thousand dollars electric vehicle and that enters an already
Speaker 4: competitive market in China domestic market where there are many
Speaker 4: more ev players and many more models. But investors like
Speaker 4: what they've seen, and perhaps in the coming weeks we'll
Speaker 4: talk a bit more about the Joomi story. Bitcoin is
Speaker 4: one to watch. We're above seventy one thousand US dollars
Speaker 4: per token. There is a lot in the news cycle
Speaker 4: this week about the continued momentum of spot bitcoin ETFs,
Speaker 4: the net inflows of money into those ets. We had
Speaker 4: Mike Novagrats on the show yesterday making the ball case
Speaker 4: for bitcoin, and in the background, Sam Bankman Freed is
Speaker 4: awaiting sentencing in New York City and he is facing
Speaker 4: the prospect of between forty and fifty years of prison time.
Speaker 5: Let's get the latest.
Speaker 4: We're Bloomberg's David Gura, who joins us from outside the courthouse.
Speaker 5: David, what is happening.
Speaker 1: Yeah, things are wrapping up here.
Speaker 2: Ed.
Speaker 5: The judge is now speaking.
Speaker 1: So we heard from Sam Bankman Freed, as he mentioned
Speaker 1: just a moment ago. He didn't explicitly apologize to everyone,
Speaker 1: but acknowledge that people were upset and had been hurt
Speaker 1: by things that he did in his past. And then
Speaker 1: we heard from the prosecution who kind of rejected all
Speaker 1: of the arguments that both Sam Bankman Fried made and
Speaker 1: his attorneys made. Nick Rose, who was one of the
Speaker 1: lead prosecutors, saying he lied to banks, he lawfully transferred money,
Speaker 1: lawfully transferred money, he interfered with the bankruptcy collection, the
Speaker 1: acid protection process, obstructed justice, and committed perjury.
Speaker 6: Judge Lewis Kaplan now speaking.
Speaker 1: Kind of summarizing, yes, what transpired during the course of
Speaker 1: the trial, but also the conclusions of the jury.
Speaker 6: They reached their vertice a.
Speaker 1: Few months back, and he said, SBF is what one
Speaker 1: would call a very high achieving autistic person. Something that
Speaker 1: had come up during the sentencing memoranda had to do
Speaker 1: with the way that Sam Bankman Freed acts, his parents,
Speaker 1: talking a lot about what they call his ahedonia, his
Speaker 1: inability to feel happiness. The judge addressing that head on,
Speaker 1: but he said the goal for Sam Bankman Freed was
Speaker 1: a always power and influence. He got into this argument
Speaker 1: that the prosecution tried to make during the course of
Speaker 1: the trial about extraw donations, about the campaign meddling that
Speaker 1: sam Beglefrid tried to do with customer money.
Speaker 6: This was going to be part of.
Speaker 1: A second trial if the prosecution chose to have one
Speaker 1: this year. They elected not to do that in light
Speaker 1: of the guilty of vertic they had. But again Judge
Speaker 1: Kaplan seizing on the fact that in his view, Sam
Speaker 1: Begmnfried wasn't kind of bumbling into this. He had a
Speaker 1: very clear objective fear of getting political influence and power
Speaker 1: across the world.
Speaker 4: End all right, Bloomboos David Gurez, you can see is
Speaker 4: outside of the courthouse, and the moment that there is
Speaker 4: a development, we will bring it to you live here
Speaker 4: on Bloomberg Television and Bloomberg Technology. There is still much
Speaker 4: more to discuss about what happens next and whether there
Speaker 4: is a lasting impact on this industry. Bitwise, Asset Management
Speaker 4: CIO Matt Hogan joins me for his thoughts on what's
Speaker 4: next for your industry.
Speaker 5: Matt, you know I have Mike no regrets.
Speaker 4: On the show yesterday, he gave some very interesting thought
Speaker 4: it's about the legal system in this country, but essentially
Speaker 4: described it as a bookend, the sentencing, whatever happens.
Speaker 9: How are you approaching this, Yeah, I think that's exactly right. Look,
Speaker 9: the crypto industry has moved on. We're past FTX, we're
Speaker 9: onto ETFs, we're past Sam Bankman Free, We're on to
Speaker 9: Larry Fink and others. So we've entered a new institutional
Speaker 9: moment for the crypto industry, and that's for the better,
Speaker 9: for the vastly better. I like the idea of this
Speaker 9: as a bookend. We need to deal with these issues
Speaker 9: that we encountered in the last crypto market cycle and
Speaker 9: put them aside. Hopefully this is the last time we're
Speaker 9: talking about Sam Bekmin Freed on National TV. That would
Speaker 9: be the best thing for crypto and the right thing
Speaker 9: for crypto. So I'm optimistic about closing this chapter and
Speaker 9: moving on.
Speaker 4: Matt Our guest earlier in the program was Christine Adams.
Speaker 4: She spent eleven years in the Los Angeles US Attorney's Office,
Speaker 4: you know, an experience federal prosecutor, and she explained to
Speaker 4: her audience that what happens with sentencing, one of the
Speaker 4: biggest points of it is deterrence to dissuade others from
Speaker 4: acting in the same way as Sam Bankman freed in
Speaker 4: the future. The reason I outline that to you is
Speaker 4: that this is still an industry where we're trying to
Speaker 4: assess the investment in startups who are working at the
Speaker 4: technology level blockchain for a general description, how much stress
Speaker 4: and anxiety do you think that the leaders and entrepreneurs
Speaker 4: in your industry are under to get it right to
Speaker 4: not take risks?
Speaker 9: Absolutely, if you operate in crypto, you're operating in an
Speaker 9: emerging regulatory environment and it can be challenging. I do
Speaker 9: hope the sentence is harsh enough that it provides a
Speaker 9: deterrent to other fraudsters. But this was classic financial fraud.
Speaker 9: There was nothing crypto specific about this. It was classic
Speaker 9: financial fraud. I think the big thing that it points
Speaker 9: out is we need more regulatory clarity here. In the US,
Speaker 9: so a lot of the sort of worst things that
Speaker 9: have happened in crypto's past, the ghosts of crypto past,
Speaker 9: happened because of this lack of regulatory clarity, because of
Speaker 9: efforts to make it difficult for crypto to interoperate with
Speaker 9: the traditional financial system, to get exposure to banks, to
Speaker 9: benefit from regulation.
Speaker 3: I'm hopeful as we bookend this.
Speaker 9: Past chapter and turn to the new chapter, it's not
Speaker 9: just relying on crypto to be good, which of course
Speaker 9: it should be, but we get more regulatory clarity that
Speaker 9: provides the benefits of regulation. I think, for what it's worth,
Speaker 9: the ETF is a great example of that. ETFs came
Speaker 9: to market, they lowered costs by ninety percent, they increased
Speaker 9: investor confidence, and everyone is in a better place.
Speaker 3: Hopefully that's the playbook we.
Speaker 9: Get moving forward, more regulatory clarity, more investor protections, and
Speaker 9: a bigger, better crypto industry.
Speaker 4: Matt, as your industry fully regains the trust of investors.
Speaker 3: I think we're working through that.
Speaker 9: I do think pro regulatory environments like the ETA are
Speaker 9: part and parcel of building that trust. It's absolutely true
Speaker 9: investors shouldn't trust offshore exchanges that they don't know they want.
Speaker 9: A lot of investors want the benefits of regulation. It's
Speaker 9: been difficult to get those in crypto, but we're making
Speaker 9: great progress. I do think there is a crypto of
Speaker 9: today and a crypto of the past. We're in a
Speaker 9: new institutional era of crypto, and I think that trust
Speaker 9: is building significantly. You can see that in prices, you
Speaker 9: can see that in the type of investors who are
Speaker 9: moving into crypto for the first time. And I think
Speaker 9: that momentum is going to build for the foreseeable future.
Speaker 4: A bit wise Asset Management COO Matt Hoger, and thank
Speaker 4: you for your time and your reaction to what's happening
Speaker 4: in Sam Banguin Freed's sentencing. Now coming up on the program,
Speaker 4: we're going to sit down with the CEO of Wolgreens
Speaker 4: to discuss the company's future Wallgreens in the reinvention era.
Speaker 4: Right now, that conversation is coming up now we will
Speaker 4: be right back.
Speaker 5: This is Bloomberg Technology.
Speaker 4: Walgreen shares a touch higher on the day after the
Speaker 4: company reported earnings, with profit and sales topping estimates.
Speaker 5: In the court of gone.
Speaker 4: However, the company narrowed its fiscal twenty twenty four guidance
Speaker 4: and cited a challenging retail environment. Delight to say that
Speaker 4: joining us now is Walgreen's Boots Alliance CEO Tim Wentworth.
Speaker 4: Let's get right to that consumer point. You outlined a
Speaker 4: picture where there is some hesitance from the consumer, retail
Speaker 4: spending perhaps not as strong, and that was based principally
Speaker 4: at the core of your outlook.
Speaker 5: What is happening?
Speaker 10: Well, I think what you see is that the consumer
Speaker 10: continues to behave in ways that show that they're challenged,
Speaker 10: they are seeking value, they are willing to bulk purchase
Speaker 10: and do other things. So when you look across the
Speaker 10: retail spectrum, you'll see some folks doing better than others
Speaker 10: if they're in the super high value part of the ecosystem.
Speaker 10: In our case, obviously we count on folks to come
Speaker 10: in and to not only visit our pharmacies, but also
Speaker 10: come in by impulse items, get last minute items, get
Speaker 10: seasonal items, and a lot of those things our purchases
Speaker 10: that you've got to get the value equation right on
Speaker 10: or else they feel discretionary to folks.
Speaker 5: And so we have.
Speaker 10: Been re engineering our experience, our SKUs and our product
Speaker 10: line and our pricing strategy and promotion strategy to bring
Speaker 10: back those that we've lost and to keep the ones
Speaker 10: that we've got. And what you see is we are
Speaker 10: anticipating the second half that is not going to meaning
Speaker 10: if we dissipate, although I also don't think it's going
Speaker 10: to get worse.
Speaker 6: I think we've got.
Speaker 10: Ourselves position to now build from the second half of
Speaker 10: this year back to a place where cans Us will
Speaker 10: begin again to prefer Walgreens more often than they do test.
Speaker 4: Say, Tim, does that consumer behavior extend to both your
Speaker 4: store footprints and your digital offerings or are you seeing
Speaker 4: any discrepancy in those two marketplaces.
Speaker 10: No, it's interesting. Our digital offerings have really proven to
Speaker 10: be not only robust, but important parts of holding up
Speaker 10: our underlying value, both value to our shareholders but also
Speaker 10: value to the consumer. So we see meaningful increases of
Speaker 10: same day delivery. You know, eighty percent of our deliveries
Speaker 10: are actually done within an hour, not a day, not
Speaker 10: two hours, eighty percent within a day, slightly over eighty percent.
Speaker 10: And so we have seen the investments in both the
Speaker 10: underlying technology to enable the consumer to interface with us
Speaker 10: that way, and then the underlying ecosystem to get it
Speaker 10: reliably to them has meaningfully brought consumers back into the fold.
Speaker 4: Tim, A big part of that technology is built and executed.
Speaker 5: On by door Dash.
Speaker 4: I know that you are only a little period into
Speaker 4: your ten year CEO of Walgreens, but what have you
Speaker 4: made of door dash and the relationship there.
Speaker 6: Yeah, we are really pleased.
Speaker 10: I will confess to you coming in, I wasn't certain
Speaker 10: how to sort of think about that. Obviously, we were
Speaker 10: not in a position to build a distribution system store
Speaker 10: door all the way to people's houses with our own
Speaker 10: vehicles and so forth. It's not necessary. DoorDash has been
Speaker 10: a great partner. They deliver it, they communicate phenomenally. If
Speaker 10: you haven't actually used the experience, I recommend everyone give
Speaker 10: it a try. The communications from both Walgreens and from
Speaker 10: DoorDash throughout the journey of the product that you've ordered
Speaker 10: is phenomenal, and so they have been great. I am
Speaker 10: super happy with the results that we're getting with them.
Speaker 5: Tim.
Speaker 4: I scanned through the transcripts of you were earning school
Speaker 4: a few times and I was looking for one thing
Speaker 4: artificial intelligence.
Speaker 5: I saw the word automation.
Speaker 4: How big was the temptation to try and tell Woolgreen's
Speaker 4: AI story, and frankly that has been the pressure of
Speaker 4: this earning season for CEOs across all sectors.
Speaker 10: So ed, if you know me at all, you'll know
Speaker 10: that I won't use buzzwords if I can possibly avoid it,
Speaker 10: and I won't say things that don't have deep meaning.
Speaker 10: And as it relates to AI, there are some very
Speaker 10: very interesting things we are doing in our business, both
Speaker 10: within our own four walls and working with others that
Speaker 10: we are super excited about in terms of everything from
Speaker 10: load balancing to inventory management. Ultimately too, I think some
Speaker 10: of the work that people are doing in stores. So
Speaker 10: there's a there's a fairly wide landscape of things that
Speaker 10: we are using AI as a tool for. But it's
Speaker 10: a tool and it needs use cases that we're and
Speaker 10: by the ways, you know, we have got we've got
Speaker 10: years of machine learning applicability to certain things, right, But
Speaker 10: as we look at predicting consumer behavior, as we look
Speaker 10: at meeting consumers where they want to be before they
Speaker 10: even know that we're we're going to be there, those
Speaker 10: sorts of things, and again in terms of a very
Speaker 10: complex operating model where we can actually improve service improve
Speaker 10: working capital, integrate our stores with our micro fulfillment centers.
Speaker 6: We think there's some really interesting things that we can
Speaker 6: do there.
Speaker 10: I just spoke with Alex Karp this week from Pallenteer,
Speaker 10: who clearly is doing some interesting things there, and that's
Speaker 10: one of a number of folks that we're working with
Speaker 10: to actually again really get at meaningful things that we
Speaker 10: can do in the business leveraging AI.
Speaker 4: Please keep us posted on Bloomberg Technology about the relationship
Speaker 4: with Palenteer in the future. You know, I recently spoke
Speaker 4: with DOTR Karp as well. Listen, this is the early
Speaker 4: innings of what people are calling the reinvention era of Walgreens.
Speaker 4: You have your strategic business review next month, but pharmacy
Speaker 4: does seem to be kind of a core pillar of
Speaker 4: that in our world. It's a world that Amazon is
Speaker 4: increasingly moving into. Just explain the strategy, the early stages
Speaker 4: of it for pharmacy for our audience.
Speaker 10: So I think what you've got to look at to
Speaker 10: understand our pharmacy strategy is what are the possibility and
Speaker 10: the things today that we're doing in the back of
Speaker 10: our stores. So it's more than just delivering acute meds
Speaker 10: to folks when they need them because they've they've got
Speaker 10: a short term problem. It's more than just filling long
Speaker 10: term maintenance medications, neither mailing it to the patient or
Speaker 10: having them come in and pick it up. It's more
Speaker 10: than vaccines. Even now we're doing test and treat, we're
Speaker 10: doing some other things, not to mention some workflow changes
Speaker 10: that just free up pharmacist time so they can consult
Speaker 10: with patients. And I think that's the big difference when
Speaker 10: I look at it, Tim the other player.
Speaker 4: Yes, Tim, I'm sorry to interrupt to you. Tim Wentworth,
Speaker 4: all greens Boots Alliance CEO. We have some breaking news.
Speaker 4: Sam Bankman Freed, the FTX founder, has been sentenced to
Speaker 4: twenty five years in prison by the judge in his
Speaker 4: fraud and white collar crime case. I will repeat that
Speaker 4: Sam Bankman Freed has been sentenced to twenty five years
Speaker 4: in prison. He was convicted of fraud as a reminder
Speaker 4: over the collapse of FTX. The prosecution had been pushing
Speaker 4: for a sentence in between forty to fifty years. The
Speaker 4: defense had been pushing for six and a half.
Speaker 5: The result is.
Speaker 4: That Sam Bankman Fried has been sentenced to twenty five years.
Speaker 4: That's bring in Bloomberg's Max Chafkin, who joins me and
Speaker 4: has done deep reporting on this.
Speaker 5: Max.
Speaker 11: Your reaction, Yeah, I mean I think this is sort
Speaker 11: of within kind of what a lot of people were expecting.
Speaker 11: You know, the prosecution asked for forty or forty to fifty,
Speaker 11: defense had asked for five. What we've seen from Judge
Speaker 11: Kaplan based on the reports that we're getting from Bloomberg
Speaker 11: reporters in the courtroom, you know, he excoriated bankmin free,
Speaker 11: you know, said he lied repeatedly, causing a huge amount
Speaker 11: of harm, and yet said he didn't think the forty
Speaker 11: to fifty years was he thought that was too severe.
Speaker 6: So we've seen a bit of a compromise.
Speaker 4: Now.
Speaker 11: Now twenty five years in prison is a very long time.
Speaker 11: You know, Sam Bankmin freed is you know, in his
Speaker 11: early thirties now he's going to be in his late
Speaker 11: fifties when he comes out of federal prison. And so
Speaker 11: this essentially we'll put an end to the case, barring,
Speaker 11: of course, the inevitable appeal by his lawyers, which will
Speaker 11: come when this is all concluded.
Speaker 5: Max, stay with us.
Speaker 4: First of all, a headline that Bank Sam Bankmin Freed
Speaker 4: has been ordered to forfeit more than eleven billion dollars.
Speaker 4: Let's get out to the courthouse in New York City
Speaker 4: and Bloomberg's David Gura David the latest, please.
Speaker 1: Yeah, so twenty five years, as you said, Ed, and
Speaker 1: I'll just summarize her of what we heard from Judge
Speaker 1: Lewis Kaplan here ahead of that sentencing. He said from
Speaker 1: the get go he thought that what the prosecution was
Speaker 1: asking for was too high. Again, they were asking for
Speaker 1: forty to fifty years. But he emphasized that was not
Speaker 1: for the purpose of diminishing the seriousness of those crimes,
Speaker 1: and emphasized several times in his statement that he was
Speaker 1: quite critical of what Sam Bankman Freed had done and
Speaker 1: that there needed to be something here that would deter
Speaker 1: both him and others from these kinds of crimes. He said,
Speaker 1: theres absolutely no doubt that Sam Bankman Freed's name pretty
Speaker 1: much is mud around the world right now. But he said,
Speaker 1: there is a risk this man will be in a
Speaker 1: physician to do something very bad in the future. So
Speaker 1: again there was a fear of recidivism here, something that
Speaker 1: the prosecution brought up several times in their sensing memo
Speaker 1: and was obviously very compelling to Judge Lewis Kaplan. He
Speaker 1: lingered on the words this was a very serious crime,
Speaker 1: he said, though slowly, according to our colleagues who are
Speaker 1: in the courtroom and watching all of this unfold. So
Speaker 1: I'm not diminishing in any way the enormous harm that
Speaker 1: he did, the brazenness of his actions, his exceptional flexibility
Speaker 1: with the truth, his apparent lack of any real remorse,
Speaker 1: and the need to deter others engaging in comparable behavior. Again,
Speaker 1: I think what so many people were looking for here
Speaker 1: the prosecution, certainly the victims of the crimes that were
Speaker 1: committed by Sam Begmanfreed, was a concrete apology at and
Speaker 1: that was something that we didn't get from Sam Bankman
Speaker 1: Freed when he spoke to the court this morning, and
Speaker 1: the judge very aware of that fact as he issued
Speaker 1: the sentence in just a moment ago. Twenty five years
Speaker 1: in prison for Sam Bankman Freed.
Speaker 4: Okay, I'm going to recap the headline. Sam Bankman Freed
Speaker 4: sentenced to twenty five years in prison. He has been
Speaker 4: ordered to forfeit more than eleven billion dollars. We will
Speaker 4: dig into the mechanics of how that's going to work eventually.
Speaker 4: I'm sure we need more detail. Bloombo's Max Chafkin is
Speaker 4: with me out of New York City.
Speaker 5: Max.
Speaker 4: You know, the story that BusinessWeek told, that we told
Speaker 4: through our podcasts was complex. But let's go to the
Speaker 4: basics of what happened to FTX and why Sam Bankman
Speaker 4: Freed has actually been sentenced to twenty five years in prison.
Speaker 7: Yeah.
Speaker 11: I mean, the basics are that Sam Bankman Freed started what,
Speaker 11: in retrospect was a fraudulent cryptocurrency exchange, an exchange that
Speaker 11: poses a place where you'd send money and buy these
Speaker 11: crypto assets. But in fact what happened is your money
Speaker 11: went into Sam Bankment Freed's pockets and in the pockets
Speaker 11: of people close to him, and they spent it on
Speaker 11: all number of things, including some sort of very interesting
Speaker 11: in retrospect investments, some investments in uh strange tokens, and uh,
Speaker 11: you know, investments in real estate and the Bahamas, some payments,
Speaker 11: payments to his parents and uh, you know, really wide
Speaker 11: and broad portfolio, and of course huge amounts of money
Speaker 11: spent on marketing and and and you know, one.
Speaker 6: Of the most difficult parts of this story.
Speaker 11: And the thing you see in these in these victim
Speaker 11: statements is that the marketing said this was safe. Key
Speaker 11: point to Sam bankman Fried's sort of the way he presented,
Speaker 11: the way he marketed himself was that he was more responsible.
Speaker 11: He was the kinder, gentler version of crypto. He was
Speaker 11: the version of crypto you know that that hung out
Speaker 11: with Gizell and Tom Brady, that you know, was comfortable
Speaker 11: around democratic politicians and so on.
Speaker 6: And of course he was.
Speaker 11: He bought that, and he he bought that with customer funds,
Speaker 11: and and and many of that much of that money
Speaker 11: was gone at the time that Fts collapsed. Now now,
Speaker 11: since the collapse, the bankruptcy attorneys led by John Ray,
Speaker 11: have managed to recover you know, a significant part of
Speaker 11: the money that was lost, and that's some relief for
Speaker 11: the victims, although as we saw today and as we've
Speaker 11: seen from victim statements in the past, you know, it's
Speaker 11: kind of small comfort people even if they've gotten their
Speaker 11: initial investment back, even if they expect to get their
Speaker 11: initial investment back one day. Many people's lives were ruined
Speaker 11: by this episode, and they're never going to be the same.
Speaker 4: Let's go back out to the courthouse on the ground
Speaker 4: with Bloomberg's David Gura. I mean, the numbers here are
Speaker 4: staggering when you look at the charges. The totality of
Speaker 4: it was one hundred and ten years, the prosecution forty
Speaker 4: to fifty. We end up with twenty five years. There
Speaker 4: is so much happening, and we're getting more information. What
Speaker 4: is top of mind for you, David.
Speaker 1: Yeah, So we're at the point now and the hearing
Speaker 1: where the judge is sort of indicating where he thinks
Speaker 1: Sim Bankman Freed might be remanded to prison. He said
Speaker 1: he's going to recommend a prison in the San Francisco
Speaker 1: Bay area.
Speaker 10: Course.
Speaker 1: Sam Bankman Freed grew up very close to the Stanford
Speaker 1: University camp.
Speaker 6: Both of his parents, who are.
Speaker 1: In the building behind me in the courtroom today are
Speaker 1: members of the Stanford Law School faculty. So by virtue
Speaker 1: of that geographic proximity, it seems logical he might end
Speaker 1: up there. The judge saying he doesn't think there's the
Speaker 1: need for any sort of maximum security situation for Sam
Speaker 1: Bacon Freed when he goes to prison, but we'll wait
Speaker 1: to see if we hear anything from prosecutors after this
Speaker 1: hearing concludes, after the verdict was entered, we did hear
Speaker 1: from US Attorney Damian Williams, and he wants to send
Speaker 1: this verdict to send a message. The speed of this
Speaker 1: case to send a message, something we've been talking about
Speaker 1: a lot today is just the resonance of that message
Speaker 1: and how the strength of this sentence, the length of
Speaker 1: this sentence will make that message work forceful.
Speaker 6: So we'll see if we.
Speaker 1: Hear anything from them, but it'll be a matter of weeks,
Speaker 1: if not months, before Sam Begmantry moves from jail in
Speaker 1: Brooklyn where he's been for the last few months, to
Speaker 1: prison wherever that may be.
Speaker 4: At our team coverage here with Bloomberg's Max Chafkin and
Speaker 4: David Gurra, I mean, Max, as we come towards the
Speaker 4: end of Bloomberg Technology, this is a historic moment in
Speaker 4: the context of white collar crime, fraud, but also the industry.
Speaker 5: You're closing thoughts.
Speaker 11: Yeah, I mean, we've seen why collar criminals get big sentences.
Speaker 11: A lot of people have compared this this episode to
Speaker 11: Bernie Madeoff, which I think is a fair comparison. Madeoff
Speaker 11: got a much larger sentence. But as you know, both
Speaker 11: the defense, the prosecution, the judge. Everyone sort of acknowledged
Speaker 11: he was very elderly when he got this like insanely high,
Speaker 11: you know, one hundred year plus sentence. I don't think
Speaker 11: anyone expected him to serve it in its totality.
Speaker 6: I do think it is staggering.
Speaker 11: I mean, you know, just a couple of years ago,
Speaker 11: Sam Mangminfried was seen as one of the wealthiest, sort
Speaker 11: of most respected, you know, one of the pillars of
Speaker 11: the business world. And you know, really in a very
Speaker 11: short amount of time he has you know, not only
Speaker 11: lost all that money, not only become as the judge said,
Speaker 11: his name is mud, you.
Speaker 6: Know, because of the anger that people feel.
Speaker 11: But he's going to prison, and the speed with which
Speaker 11: that has happened, as David said, is remarkable. I mean,
Speaker 11: it was a incredibly rapid rise and an even quicker font.
Speaker 4: Bloomberg's Max Chafkin of Business Week, Bloomberg's David Gura hosts
Speaker 4: a big take on the ground in New York City.
Speaker 5: Thank You Now.
Speaker 4: Reminder coming up on Bloomberg Television a full hour of
Speaker 4: Bloomberg Crypto, a special that will focus on the sentencing
Speaker 4: of Sam Bankman freed who has been sentenced to twenty
Speaker 4: five years of prison, with the judge recommending prison in
Speaker 4: the San Francisco Bay Area. Please tune in for that
Speaker 4: special and Bloomberg's team coverage that does it. For this
Speaker 4: edition of Bloomberg Technology. It has been an incredible show
Speaker 4: recap on the podcast We're publishing on Apple, Spotify, and
Speaker 4: iHeart No BTech tomorrow though in a short US week.
Speaker 4: This is Bloomberg Technology.