Invest ideasNews
24 May 2026, 21:31
Silicon Valley Law Firm Fenwick & West Settles FTX Fraud Claims for $54 Million
Fenwick & West LLP, the Silicon Valley law firm that served as lead outside counsel for collapsed crypto exchange FTX, agreed to pay $54 million to settle a federal class-action lawsuit filed by former FTX customers. Lawfirm Cuts $54M Deal With FTX Customers After Lead Counsel Allegations The proposed settlement was filed this week in
24 May 2026, 20:02
Senator Elizabeth Warren Attacks Ripple (XRP) Again. Here’s the Latest
A sitting U.S. Senator is once again challenging federal regulators over one of the most significant banking approvals in crypto history. The Office of the Comptroller of the Currency granted Ripple conditional approval to operate as a National Trust Bank in December 2025. The move gave Ripple federal oversight for digital asset custody services and positioned its RLUSD stablecoin for further regulatory recognition. For the XRP community, it was a landmark step forward. Senator Elizabeth Warren sees it differently. On May 18, Warren sent a formal letter to OCC Comptroller Jonathan Gould, arguing the approvals violated the National Bank Act and calling them outright illegal. Ripple was not the only target. The OCC has approved national trust banking charter applications for nine companies and their affiliates, including Coinbase, Circle, and others. JUST IN: Infamous U.S Senator Elizabeth Warren says the OCC’s approval allowing #Ripple to operate as a National Trust Bank is “illegal.” This is a serious problem to have people so incompetent in a Senator position. She is actually ridiculous and needs to go immediately. pic.twitter.com/mxC0OH0GaS — Crypto Dyl News (@cryptodylnews) May 23, 2026 Warren’s Core Argument Warren said these companies look more like crypto banks than trust companies. Her position is that the OCC overstepped its authority by approving firms whose business plans go beyond traditional fiduciary activities. The legal controversy centers on what national trust banks are permitted to do. The National Bank Act allows national banks to limit their activities to the operations of a trust company. Traditionally, this meant fiduciary activities like holding and managing assets on another’s behalf. Warren also argued these approvals are serious risks to the safety and soundness of the U.S. banking system. She set a June 1, 2026, deadline for the OCC to produce charter records and any Trump family communications tied to the approvals. A Pattern of Opposition This move fits a well-established pattern. Warren has spent years positioning herself as one of crypto’s most vocal critics in Congress. Ahead of the Senate Banking Committee’s markup of the Digital Asset Market Clarity Act earlier this month, Warren filed 44 proposed amendments to the CLARITY Act alone. One amendment targeted the bill’s grandfather clause , which would automatically classify certain crypto assets as commodities if they already back a U.S.-listed spot ETF or ETP by January 1, 2026. Warren aimed to remove that shortcut entirely. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Another proposal aimed to block the U.S. Federal Reserve from granting master accounts to crypto firms, with Ripple among the companies directly affected. Despite her efforts, the CLARITY Act cleared the Senate Banking Committee , with Warren’s amendment to bar digital assets from retirement accounts failing in committee. Where Things Stand Ripple holds a conditional OCC approval, and the CLARITY Act is advancing toward a full Senate vote. Warren’s letter demands answers by June 1, but her amendments have already failed to gain traction. The regulatory path for Ripple and XRP continues to move forward. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Senator Elizabeth Warren Attacks Ripple (XRP) Again. Here’s the Latest appeared first on Times Tabloid .
24 May 2026, 19:10
OpenAI and Anthropic now sit at the center of Big Tech’s AI cloud backlog
The AI boom now has one very ugly question hanging over it. Is the money real, or are Big Tech companies just feeding cash to AI startups and booking the same cash as cloud sales later? That question now sits right on top of OpenAI and Anthropic, because fresh filings show both companies are tied to more than half of the almost $2 trillion in future cloud revenue sitting on the books of Microsoft ( MSFT ), Oracle (ORCL), Alphabet ( GOOGL ), and Amazon (AMZN). It sounds too good to be true, and yes, it is wild. A tech giant invests billions in an AI firm through some financing agreement, and in that agreement, the AI firm is advised to deploy its funds on purchasing cloud infrastructure owned by the same tech giant. And so, the AI firm receives funding, the cloud firm makes income, and Wall Street enjoys looking at some impressive figures. The money does not get very far, however. It goes out through one door and returns through another door in the guise of a new customer. Microsoft books OpenAI cloud spending after funding the same customer Microsoft’s OpenAI collaboration serves as an illustrative example. Microsoft spent close to $13 billion on funding OpenAI; however, this investment was not limited to cash contributions only. The majority of that investment consisted of Azure credits, which OpenAI used to develop and execute its AI models using Microsoft infrastructure. The usage of the Microsoft servers by OpenAI generated revenues for Microsoft. As a result, Microsoft contributed financially to OpenAI’s activities, OpenAI used Microsoft resources to execute them, and Microsoft recognized that contribution as demand from its customers. OpenAI’s cloud bill has now climbed above $60 billion a year. Its revenue is around $25 billion. That means its server costs are more than double what it brings in. For a normal company, that would look like a giant red flag. In AI land, it gets treated like growth. Anthropic is running a similar play with Amazon. The company spent about $2.66 billion on Amazon Web Services in nine months. That was roughly the same size as its revenue at the time. So the money coming in was almost matched by the money going straight back out to AWS. That is where the second part of the scam plays out. With more money flowing into Anthropic or OpenAI at a higher valuation, the technology giants that have invested in them can inflate the value of their stakes to make money without having sold any goods or collected any cash. A gain has been made. Google’s parent company, Alphabet, earned $62.6 billion in the first quarter of 2026. $28.7 billion was attributed to Google’s gains in relation to its stake in Anthropic. Amazon posted $30.3 billion in earnings in the first quarter of 2026. Its Anthropic gains accounted for $16.8 billion of it. Amazon burns real cash while AI paper gains lift reported profit However, Amazon’s cash metrics appeared to be in a more difficult position. Free cash flow fell by 95% to $1.2 billion, and the company also invested $44.2 billion into physical data centers. This clearly demonstrates the difference between accounting profits and real cash. One sits in spreadsheets, while the latter builds real-life data centers using land, semiconductors, electricity, cooling, connections, buildings, and personnel. This could lead to concentration risks for both companies. In particular, Microsoft has 49% of its $627 billion future backlog dependent on OpenAI. On its part, Oracle has 54% of its $553 billion future pipeline dependent on OpenAI alone. This all looks eerily familiar to something straight out of the dot-com era. Back in 2001, when Global Crossing and Qwest Communications traded equal fiber network capacity and recorded such swaps as sales. As a result, Qwest lost $1.4 billion in fraudulent revenue. Meanwhile, Global Crossing filed for bankruptcy. The only thing that separates both cases today is the fact that such swaps by telecommunications companies were not considered legal at that time, while today’s AI cloud loop easily fits in today’s accounting rules. According to the Kobeissi Letter, the ten largest American stocks constitute 41% of the S&P 500. Among these stocks, we find Magnificent Seven, including Apple and Tesla. This percentage is 14 points above the previous dot-com peak in 2000. “This means about 41 cents of every dollar invested in the S&P 500 flows directly into shares of just 10 firms,” The Kobeissi Letter wrote . “Roughly 35 cents of every dollar flows specifically into the Magnificent 7 group. All while nearly 50 cents of every dollar is now going into AI-linked stocks. Mega-cap tech is all that matters right now.” Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .
24 May 2026, 18:43
Big Short’s Michael Burry Warns SEC Tokenized Stock Plan Risks ‘Snow Crash’ Future
Michael Burry warned this week that the U.S. may be heading toward a “Snow Crash cyber-punk future” as the U.S. Securities and Exchange Commission (SEC) prepares rules that would let crypto platforms trade tokenized versions of traditional stocks. Burry Warns SEC Tokenized Stocks Could Erode Human Connections Writing on his Substack channel “Cassandra Unchained” and
24 May 2026, 16:36
SpaceX Reveals How Much Bitcoin (BTC) It Owns
SpaceX has revealed in a new S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) that it owns $1.293 billion in Bitcoin (BTC) on its balance sheet. The disclosure is the first time the company has publicly shared details about its crypto treasury ahead of its IPO. SpaceX Discloses Its BTC Position In SpaceX’s filing, the company says it holds 18,712 BTC, which it purchased at an average cost of around $35,324 per BTC for a total of around $661 million. As of March 31, 2026, the fair value of those holdings stood at $1.293 billion, with an unrealized gain of nearly 119%. “The company has ownership of and control over its digital assets, which consists of Bitcoin, and utilizes, and expects to continue to utilize third-party custodians to hold its Bitcoin,” read the filing. Elon Musk has publicly hinted at his company’s interest in digital assets through his frequent social media commentary for years. However, this filing marks the first time the aerospace giant has formally acknowledged holding BTC. Until now, estimates of the firm’s holdings had been mostly speculative, with analysts tracking Arkham-linked wallets putting the figure at around 8,285 BTC. The revelation places SpaceX among the largest corporate holders of BTC worldwide, surpassing Tesla’s own reserves. According to data from BitcoinTreasuries.net, the former now ranks seventh globally, while the latter sits in 13th place with holdings of 11,509 BTC. Elsewhere, Strategy remains the largest BTC treasury company, with the firm recently making a multi-billion dollar purchase of 24,869 BTC, bringing its entire stash to 843,738 BTC. SpaceX’s Upcoming IPO SpaceX is getting ready for its much-anticipated IPO, which it plans to list on the Nasdaq under the ticker SPCX next month. The company is aiming to raise about $75 billion, with a valuation that’s expected to fall between $1.75 trillion and $2 trillion. If successful, the offering would surpass the Saudi Aramco IPO from 2019, which raised $29.4 billion and currently holds the record for the biggest debut ever. The aerospace firm said in its Wednesday prospectus that it sees a total addressable market of about $28.5 trillion, with its strategy focused on identifying opportunities that match this under its repeatable business model. The document also shows that Musk will keep about 85.1% of the voting power after the listing, meaning that he will still have strong control over key company decisions even after it becomes a public entity. Meanwhile, Circle’s IPO made headlines last year in the crypto space, as the USDC issuer raised over $1 billion in its public debut. The offering also received lots of interest from major investors, with firms like ARK Investment and BlackRock contributing to its shares being oversubscribed by more than 25 times. The post SpaceX Reveals How Much Bitcoin (BTC) It Owns appeared first on CryptoPotato .
24 May 2026, 16:00
FTX Lawyers Pay $54M In Settlement Over Services Rendered To Exchange – Details
In a noteworthy development, US law firm Fenwick & West has agreed to pay $54 million to settle claims arising from its legal services for the defunct crypto exchange FTX. The proposed settlement, filed in federal court in Miami on Friday, resolves allegations from FTX customers who accused the Silicon Valley-based firm of facilitating misconduct tied to one of the largest financial frauds in US history. Fenwick Denies Knowledge Of FTX Illicit Activities Despite Settlement According to court filings as reported by Reuters, Fenwick & West served as a lead outside counsel for FTX during the exchange’s rapid expansion into a global crypto trading platform. Plaintiffs in the class action lawsuit alleged the firm “helped to craft and implement strategies that facilitated FTX’s fraud,” accusing the lawyers of assisting with regulatory and operational structures later tied to the misuse of customer funds. The proposed settlement agreement still requires approval from US District Judge K. Michael Moore in Miami. Attorneys representing FTX customers, including prominent litigator David Boies, argued the deal was reasonable and would prevent prolonged and costly litigation. However, Fenwick rejected allegations that it knowingly participated in fraudulent conduct. In a public statement, the law firm said it “was not aware of the fraud at FTX,” adding that it stood by the integrity of its legal work. The $54 million agreement marks the largest settlement in a second wave of FTX-related class action resolutions. Other settlements include an $11.75 million payment from former FTX auditor Prager Metis and a $420,000 settlement involving former Miami Heat player Udonis Haslem, who promoted the exchange. The Journey So Far FTX collapsed in November 2022 after revelations that an estimated $11- $13 billion in customer funds had allegedly been diverted to its sister trading firm, Alameda Research. The exchange’s bankruptcy triggered widespread panic across the digital asset market and erased $200 billion in global crypto market cap. In 2024, founder Sam Bankman-Fried was convicted on fraud and conspiracy charges and sentenced to 25 years in prison. Although he pleaded not guilty and has since appealed the conviction, claiming the initial trial was unfairly prejudiced against him. Meanwhile, the FTX Recovery Trust has continued efforts to reimburse affected creditors under the company’s Chapter 11 restructuring process. In March 2026, the estate announced a fourth distribution of approximately $2.2 billion, bringing cumulative repayments to eligible claimants close to $10 billion. Several customer classes, including many US-based users, have reportedly reached full or near-full recovery levels under the court-approved repayment plan.
