said in April after sealing the deal. “I don’t care about the economics at all.”

He cared a little more when the subsequent plunge in the stock market meant that he was overpaying by a significant amount. Analysts estimated that Twitter was worth not $44 billion but $30 billion, or maybe even less. For a few months, Mr. Musk tried to get out of the deal.

This had the paradoxical effect of bringing the transaction down to earth for spectators. Who among us has not failed to do due diligence on a new venture — a job, a house, even a relationship — and then realized that it was going to cost so much more than we had thought? Mr. Musk’s buying Twitter, and then his refusal to buy Twitter, and then his being forced to buy Twitter after all — and everything playing out on Twitter — was weirdly relatable.

Inescapable, too. The apex, or perhaps the nadir, came this month when Mr. Musk introduced a perfume called Burnt Hair, described on its website as “the Essence of Repugnant Desire.”

“Please buy my perfume, so I can buy Twitter,” Mr. Musk tweeted on Oct. 12, garnering nearly 600,000 likes. This worked, apparently; the perfume is now marked “sold out” on its site. Did 30,000 people really pay $100 each for a bottle? Will this perfume actually be produced and sold? (It’s not supposed to be released until next year.) It’s hard to tell where the joke stops, which is perhaps the point.

Evan Spiegel.

“What was unique about Twitter was that no one actually controlled it,” said Richard Greenfield, a media analyst at LightShed Partners. “And now one person will own it in its entirety.”

He is relatively hopeful, however, that Mr. Musk will improve the site, somehow. That, in turn, will have its own consequences.

“If it turns into a massive home run,” Mr. Greenfield said, “you’ll see other billionaires try to do the same thing.”

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Peter Thiel, Major U.S. Political Donor, Is Said to Pursue Maltese Citizenship

A spokesman for Mr. Angermayer, who has based his family office and other business ventures in Malta, did not respond to requests for comment.

In early 2021, Thiel Capital also became a shareholder in a Malta entity through a byzantine series of developments. The deal involved Coru, a Mexican online financial advice start-up, which has a parent company incorporated in London.

Entities controlled by Mr. Thiel and Mr. Danzeisen, his husband, were among Coru’s biggest owners, corporate filings show. The start-up needed additional funding in late 2020, but its investors could not reach an agreement to put more cash in, said two former investors. The company went into administration, the equivalent of bankruptcy.

Around that time, Mr. Thiel, Mr. Danzeisen and several other Coru investors established a company in Malta called EUM Holdings Melite Ltd., Maltese records show. That company bought Coru’s shares out of administration for about $100,000, according to British records. The records do not detail EUM’s business activities.

Now Coru is owned by EUM. Its shareholders include Mr. Thiel, Mr. Danzeisen, Richard Li — a son of Hong Kong’s richest man, Li Ka-shing — and a group with a former Nicaraguan government official and a scion of the Spanish family that made a fortune selling Lladró porcelain figurines.

Mr. Thiel began exploring Maltese citizenship around that time, said people familiar with the process. By late 2021, documents show, he was far along in the application process and retained an agency that fielded questions from the Maltese government about his businesses and political activities.

The questions included Mr. Thiel’s role with Palantir Technologies, a data analytics company he founded that works with governments and corporations, and his political activity supporting Mr. Trump.

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Interest Rates Are Expected To Increase Again

Investors brace for another big interest rate increase this week from the Federal Reserve. The hikes are having an effect on homebuyers.

Another interest rate hike is approaching to temper inflation, but it’s flaring tempers for some who are afraid the dream of a big purchase is getting too expensive. 

“I would die to be a homeowner,” said Heather Blanchet, who’s looking for a home. 

Another three quarters of a percentage point higher interest means the standard borrowing rate to buy homes, cars and put money on a credit card is climbing. 

That’s straining people like Blanchet, who’s staring down increasing monthly payments on her would-be mortgage. 

“Getting a loan, I feel like, is increasingly hard, interest rates are crazy,” said Blanchet. 

But that’s exactly the point for the Federal Reserve, which is trying to lower white-hot demand not just for homes, but for everything.

“It’s not quite a buyer’s market yet, but it’s balancing out,” said Joy Dysart, a real estate agent.  

In the housing market it’s helping to balance the scales. While it could make a mortgage more expensive for now, it’s also leaving sellers with fewer interested buyers and less power in the deal. 

“I think we are now entering a market where sellers are working with buyers and that’s great when people are negotiating again,” said Kelly Fogul, a mortgage broker. 

Garrett and Marisa Severen know how tough it’s been for buyers. They bought a house earlier this year in cash, something they tried to avoid. 

“We probably had four houses that we really fell in love with that we lost because we didn’t do cash offers,” said Garrett Severen.  

And the number of homes being bought with cash is still above pre-pandemic levels. 

Redfin recently found more than 31% of homes are selling with all-cash offers. 

“A lot of the ‘cash buyers’ are people who are high net worth individuals who have leveraged their portfolio of assets, so they’ve taken a line of credit,” said Holly Meyes Lucus, a real estate agent.  

Still, the cooling market can be good news for people needing a mortgage, like Alexis Sande and her fiance. They just bought a new home in Florida and had a much easier time of it than they would have just months before. 

“This house had been on the market for about five days. With the interest rates going up, we didn’t have to get into a bidding war with anybody or offer more money for the home or anything like that,” said Sande. 

Still, plenty will feel the pinch of a higher rate. 

And many like Zach Van Emmerick are counting on their lucky stars they bought a home when they did. 

“I think if I would have waited another month and that would have been at 6% it probably would have limited my purchasing power and it probably would have pushed me out of where I wanted to live and the city I wanted to live in. I don’t know how much that would have raised my mortgage payment a month, a couple hundred and that hits pretty hard,” said Emmerick.  

Source: newsy.com

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Sun Valley Conference 2022: When Private Jets Land in Small-Town Idaho

HAILEY, Idaho — Robert Kraft, the owner of the New England Patriots, flies in a Gulfstream G650. So do Jeff Bezos and Dan Schulman, PayPal’s chief executive. The jets, roughly 470 of which are in operation, retail for about $75 million each.

Most days, those planes are spread out, ferrying captains of industry to meetings around the globe. But for one week in July, some of them converge on a single 100-foot-wide asphalt runway beside the jagged hills of Idaho’s Wood River Valley.

The occasion is the annual Sun Valley conference, a shoulder-rubbing bonanza organized by the secretive investment bank Allen & Company. Known as “summer camp for billionaires,” the conference kicks off this year on Tuesday, and it draws industry titans and their families — some of whom are watched over by local babysitters bound by nondisclosure agreements. In between organized hikes and fly-fishing at past gatherings, there have been sessions on creativity, climate change and immigration reform.

the ninth hole of the golf course, the head of General Electric expressed interest in selling NBC to Comcast. It is where Mr. Bezos met with the owner of The Washington Post before agreeing to buy the paper, and where Disney pursued a plan to purchase ABC — with Warren Buffett at the center of the discussions.

a year-round population of 1,800.

During a 24-hour period last year as the conference began, more than 300 flights passed through Friedman Memorial Airport in Hailey, a small town near Sun Valley, according to data from Flightradar24, an industry data firm. They ranged from tiny propeller planes to long-wing commercial jets. By comparison, two weeks ago, when Mr. Pomeroy gave me a brief tour of the airport, just 44 flights took off or landed there over 24 hours, according to the data firm.

“This is empty right now,” Mr. Pomeroy said, smoothly steering his white 2014 Ford Explorer (what he calls his “mobile command center”) past a swath of freshly paved asphalt. “But in the summer, and during the event in particular, there’s airplanes parked everywhere up here.”

Much like the activities of the conference, elements of the travel there are shrouded in secrecy. Many jets flying in are registered to obscure owners and limited liability companies, some with only winking references to their passengers. The jet that carried Mr. Kraft last year, for example, is registered under “Airkraft One Trust,” according to records from the Federal Aviation Administration. The plane that Mr. Bezos flew in on is registered to Poplar Glen, a Seattle firm.

Representatives for Mr. Kraft and Mr. Bezos declined to comment. Mr. Bezos is not expected to turn up at Sun Valley this year, according to an advance list of guests that was obtained by The New York Times.

Mr. Pomeroy plans well in advance to deal with the intense air traffic generated by the conference, which he refers to obliquely as “the annual fly-in event.” Without proper organization, flocks of private jets could stack up in the airspace around Friedman, creating delays and diversions while pilots burn precious fuel.

That was the case for the 2016 conference, which coincided with Mr. Pomeroy’s first week on the job. That year, some aircraft circled overhead or sat on the tarmac for more than an hour and a half, waiting for the airspace and runway to clear.

“I saw airplanes literally lined up to take off from the north end of the field almost all the way down to the south end of the field,” Mr. Pomeroy said, referring to the 7,550-foot runway. “Tail to nose, all the way up the taxiway.”

After that episode, Mr. Pomeroy enlisted Greg Dyer, a former district manager at the F.A.A., to help unclutter the tarmac. The two coordinated with an F.A.A. hub in Salt Lake City to line up flights, sometimes 300 to 500 miles outside Sun Valley. For some flights, the staging begins before the planes take off.

“Before, it looked like an attack — it was just airplanes coming from all points of the compass, all trying to get here at the same time,” said Mr. Dyer, an airport consultant for Jviation-Woolpert.

Last year, delays were kept to a maximum of 20 minutes, and no commercial travelers missed connecting flights because of air traffic caused by the conference, Mr. Pomeroy said.

When moguls are forced to circle in the air, they often loiter in great style. Buyers willing to shell out tens of millions for a high-end private plane are unlikely to balk at an additional $650,000 to outfit the aircraft with Wi-Fi, said Lee Mindel, one of the founders of SheltonMindel, an architectural firm that has designed the interiors of Gulfstream and Bombardier private jets. Some owners, he said, have opted for bespoke flatware from Muriel Grateau in Paris, V’Soske rugs or other luxe features.

“If you have to ask what it costs, you really can’t afford to do it,” Mr. Mindel said.

During the pandemic, when commercial travel slowed because of restrictions, corporate jaunts increased among a subset of executives who didn’t want to be held back, said David Yermack, a professor at New York University’s Stern School of Business. He added that it might be cheaper in the long run to compensate chief executives with jet travel than pay them with cash.

“I think it was Napoleon who said, ‘When I realized people would lay down their lives for little pieces of colored ribbon, I knew I could conquer the world,’” Mr. Yermack said.

The glut of flights certainly raises practical concerns. The residents of Hailey, as well as nearby Ketchum and Sun Valley, have complained in the past about the noise created by the jets zooming into Friedman Memorial Airport.

To deal with the complaints, Mr. Pomeroy and the Friedman Memorial Airport Authority curtailed flights between 11 p.m. and 7 a.m. and limited the number of takeoffs and landings from the north, over the little city of Hailey.

Before the conference, Mr. Pomeroy sends a letter to incoming pilots about what to expect, admonishing them to keep the noise to a minimum.

“While the overwhelming majority of users during this event are respectful of our program and community, only a few operators who blatantly disregard our program, or who are negligent in educating themselves about our program, leave a negative impression on all of us,” Mr. Pomeroy wrote this year.

Allen & Company’s stinginess about some conference details extends to the airport. But Mr. Pomeroy and his team get enough information to conclude when the moguls will arrive and are about to leave town.

When the schmoozing is over next week, Mr. Pomeroy will begin the arduous task of ushering the corporate titans out of Idaho. Often that means closing the airport briefly to arrivals while they hustle out departures for an hour.

As the last jets get ready to leave, Mr. Pomeroy said, he and his team breathe a sigh of relief.

“Afterward, I am ready to hit the river for some serious fly-fishing for a day or two,” he said.

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Sam Bankman-Fried, Crypto Billionaire, Wants Washington to Follow His Lead

Mr. Bankman-Fried spent much of Crypto Bahamas shuttling back and forth from his laptop to the convention stage. Even his mother, Barbara Fried, had trouble getting time alone with him: As she tried to catch his eye one afternoon, a blockchain bro in a polo shirt cornered Mr. Bankman-Fried, asking him to film a birthday message for a friend. A few minutes later, he was backstage, shaking hands with Tony Blair and making awkward small talk about Brexit.

Unlike some crypto conferences, the gathering in the Bahamas was an invitation-only affair, and it drew a high-rolling crowd. As a party favor, FTX’s guests were offered discounts at a private jet company. On the bus ride to a beachside party, one attendee talked up his crypto yacht collective — “the most exclusive club that’s the most inclusive once you’re in.”

In places like Puerto Rico, the arrival of crypto millionaires chasing tax breaks has sent housing prices skyrocketing, outraging longtime residents. But the political leadership of the Bahamas has welcomed FTX with open arms. Prime Minister Philip Davis began the first day of conference programming with an enthusiastic speech, declaring that crypto entrepreneurs are “better wired for innovation and change than most people on the planet.” Later, in an interview, Mr. Davis said he’d been pleasantly surprised when Mr. Bankman-Fried wore a suit to a meeting at his office. “We want you here,” Mr. Davis recalled telling him.

Mr. Bankman-Fried skipped most of the conference festivities, but he didn’t neglect his hosting duties. He had dinner with Mr. Blair and Mr. Clinton, and rarely turned down a selfie. He also made plenty of time for Mr. Scaramucci, the chairman of SALT, a corporate events organization that helped put on the conference.

SBF’s double act with the Mooch marked the end of Crypto Bahamas. Back in the green room, FTX staffers exchanged hugs and high fives. Mr. Bankman-Fried was scrolling on his phone. He stretched and ran his hands through his hair. Then he checked his watch. The comedy bit had taken about four minutes. “I’ve got a lot of emails to catch up on,” he said.

Outside, the convention center was emptying, as hundreds of crypto enthusiasts headed for the airport. It was the calm before the coming meltdown. To leave the resort, guests had to walk through the Baha Mar casino, the largest in the Caribbean, a brightly lit hall of flashing slot machines.

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Jeffrey Epstein, a Rare Cello and an Enduring Mystery

At first Mr. DeRosa didn’t take Mr. Epstein’s command seriously. But Mr. Epstein kept calling, as did members of his staff, asking if he’d made any progress. Mr. DeRosa got to work tracking down a cello.

Like many professional musicians, Mr. DeRosa was wired into the small world of rare string instruments, a few of which command prices as high as $20 million. His own cello, made by the Italian master Domenico Montagnana in 1739, is considered one of the world’s finest and is likely worth millions of dollars. Mr. DeRosa assured Mr. Epstein he wouldn’t have to spend that much.

Soon after, Mr. DeRosa was visiting his mother in Los Angeles when he learned of a cello being sold there by a musician who recorded soundtracks for Hollywood studios. (Before that, the cello had been played by a member of the Indianapolis symphony orchestra.)

While not a Stradivarius or a Montagnana, this cello had a distinguished pedigree, and was manufactured by Ettore Soffritti, who worked in the string instrument center of Ferrara, Italy, from the late 1800s until his death in 1928. Benning Violins, the Los Angeles dealer, described the cello’s sound as “rich and powerful” and said the instrument was “suitable for the finest of cellists.”

Mr. DeRosa tried the cello. He was smitten. He said he considered it “one of the greatest modern cellos in existence.” (By “modern” he meant any produced after the Italian Renaissance.) With an asking price of $185,000, he also considered it a bargain.

Mr. Epstein seemed pleased when Mr. DeRosa told him he’d found something. He said the cello’s intended recipient — a young Israeli man named Yoed Nir — had to test the instrument first. Mr. DeRosa knew nearly every up-and-coming cellist, but he had never heard of Mr. Nir.

Mr. DeRosa had the cello on a trial basis, and Mr. Nir tested the instrument on a visit to Mr. DeRosa’s mother’s house in Los Angeles. Mr. Nir, who was about 30 years old and had dark, shoulder-length hair, which he tossed theatrically while playing, played some of Bach’s unaccompanied cello suites. He had clearly had musical training (he was a graduate of the Jerusalem Academy of Music and Dance), but Mr. DeRosa considered his playing unexceptional by his exacting standards. He could think of many young cellists more deserving of such an instrument. “I thought it incredibly odd that Jeffrey had chosen this guy,” Mr. DeRosa recalled.

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How Roman Abramovich Used Shell Companies and Wall Street Ties to Invest in the U.S.

In July 2012, a shell company registered in the British Virgin Islands wired $20 million to an investment vehicle in the Cayman Islands that was controlled by a large American hedge fund firm.

The wire transfer was the culmination of months of work by a small army of handlers and enablers in the United States, Europe and the Caribbean. It was a stealth operation intended, at least in part, to mask the source of the funds: Roman Abramovich.

For two decades, the Russian oligarch has relied on this circuitous investment strategy — deploying a string of shell companies, routing money through a small Austrian bank and tapping the connections of leading Wall Street firms — to quietly place billions of dollars with prominent U.S. hedge funds and private equity firms, according to people with knowledge of the transactions.

The key was that every lawyer, corporate director, hedge fund manager and investment adviser involved in the process could honestly say he or she wasn’t working directly for Mr. Abramovich. In some cases, participants weren’t even aware of whose money they were helping to manage.

asked Congress for more resources as it helps to oversee the Biden administration’s sanctions program along with a new Justice Department kleptocracy task force. And on Capitol Hill, lawmakers are pushing a bill, known as the Enablers Act, that would require investment advisers to identify and more carefully vet their customers.

Mr. Abramovich has an estimated fortune of $13 billion, derived in large part from his well-timed purchase of an oil company owned by the Russian government that he sold back to the state at a massive profit. This month, European and Canadian authorities imposed sanctions on him and froze his assets, which include the famed Chelsea Football Club in London. The United States has not placed sanctions on him.

a pair of luxury residences near Aspen, Colo. But he also invested large sums of money with financial institutions. His ties to Mr. Putin and the source of his wealth have long made him a controversial figure.

Many of Mr. Abramovich’s U.S. investments were facilitated by a small firm, Concord Management, which is led by Michael Matlin, according to people with knowledge of the transactions who were not authorized to speak publicly.

Mr. Matlin declined to comment beyond issuing a statement that described Concord as “a consulting firm that provides independent third-party research, due diligence and monitoring of investments.”

A spokeswoman for Mr. Abramovich didn’t respond to emails and text messages requesting comment.

Concord, founded in 1999, didn’t directly manage any of Mr. Abramovich’s money. It acted more like an investment adviser and due diligence firm, making recommendations to the directors of shell companies in Caribbean tax havens about potential investments in marquee American investment firms, according to people briefed on the matter.

Paycheck Protection Program loan worth $265,000 during the pandemic. (Concord repaid the loan, a spokesman said.)

Concord’s secrecy made some on Wall Street wary.

In 2015 and 2016, investigators at State Street, a financial services firm, filed “suspicious activity reports” alerting the U.S. government to transactions that Concord arranged involving some of Mr. Abramovich’s Caribbean shell companies, BuzzFeed News reported. State Street declined to comment.

American financial institutions are required to file such reports to help the U.S. government combat money laundering and other financial crimes, though the reports are not themselves evidence of any wrongdoing having been committed.

But for the most part, American financiers had no inkling about — or interest in discovering — the source of the money that Concord was directing. As long as routine background checks didn’t turn up red flags, it was fine.

Paulson & Company, the hedge fund run by John Paulson, received investments from a company that Concord represented, according to a person with knowledge of the investment. Mr. Paulson said in an email that he had “no knowledge” of Concord’s investors.

Concord also steered tens of millions of dollars from two shell companies to Highland Capital, a Texas hedge fund. Highland hired a unit of JPMorgan Chase, the nation’s largest bank, to ensure that the companies were legitimate and that the investments complied with anti-money-laundering rules, according to federal court records in an unrelated bankruptcy case.

“corporate governance services” to investment managers.

For $15,000 a year, plus other fees, HighWater would provide an employee to sit on the board of the financial vehicle that the fund manager was expected to launch to accept the wealthy family’s money, according to emails between the fund manager and a HighWater executive reviewed by The New York Times.

The fund manager also brought on Boris Onefater, who ran a small U.S. consulting firm, Constellation, as another board member. Mr. Onefater said in an interview that he couldn’t remember whose money the Cayman vehicle was managing. “You’re asking for ancient history,” he said. “I don’t recall Mr. Abramovich’s name coming up.”

The fund manager hired Mourant, an offshore law firm, to get the paperwork for the Cayman vehicle in order. The managing partner of Mourant did not respond to requests for comment.

He also hired GlobeOp Financial Services, which provides administration services to hedge funds, to ensure that the Cayman entity was complying with anti-money-laundering laws and wasn’t doing business with anyone who had been placed under U.S. government sanctions, according to a copy of the contract.

“We abide by all laws in all jurisdictions in which we do business,” said Emma Lowrey, a spokeswoman for SS&C Technologies, a financial technology company based in Windsor, Conn., that now owns GlobeOp.

John Lewis, a HighWater executive, said in an email to The Times that his firm received four referrals from Concord from 2011 to 2014 and hadn’t dealt with the firm since then.

“We were aware of no links to Russian money or Roman Abramovich,” Mr. Lewis said. He added that GlobeOp “did not identify anything unusual, high risk, or that there were any politically exposed persons with respect to any investors.”

The Cayman fund opened for business in July 2012 when $20 million arrived by wire transfer. The expectation was that tens of millions more would follow, although additional funds never showed up. The Cayman fund was run as an independent entity, using the same investment strategy — buying and selling exchange-traded funds — employed by the fund manager’s main U.S. hedge fund.

The $20 million was wired from an entity called Caythorpe Holdings, which was registered in the British Virgin Islands.

Documents accompanying the wire transfer showed that the money originated with Kathrein Privatbank in Vienna. It arrived in Grand Cayman after passing through another Austrian bank, Raiffeisen, and then JPMorgan. (JPMorgan was serving as a correspondent bank, essentially acting as an intermediary for banks with smaller international networks.)

A spokesman for Kathrein declined to comment. A spokeswoman for JPMorgan declined to comment. Representatives for Raiffeisen did not respond to requests for comment.

The fund manager noticed that some of the documentation was signed by a lawyer named Natalia Bychenkova. The Russian-sounding name led him to conclude that he was probably managing money for a Russian oligarch. But the fund manager wasn’t bothered, since GlobeOp had verified that Caythorpe was compliant with know-your-customer and anti-money-laundering rules and laws.

He didn’t know who controlled Caythorpe, and he didn’t ask.

In early 2014, after Russia invaded the Ukrainian region of Crimea, markets tanked. The fund manager made a bearish bet on the direction of the stock market, and his fund got crushed when stocks rallied.

The next year, Caythorpe withdrew its money from the Cayman fund. Caythorpe was liquidated in 2017.

The fund manager said he didn’t realize until this month that he had been investing money for Mr. Abramovich.

Susan C. Beachy and Kitty Bennett contributed research. Maureen Farrell contributed reporting.

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They Made Millions on Luna, Solana and Polygon: Crypto’s Boom Beyond Bitcoin

Brenda Gentry, 46, a cryptocurrency speculator from San Antonio, said she started buying Bitcoin in 2020 before switching her focus to lesser-known tokens like Bund, which is tied to a decentralized sports-betting network. Ms. Gentry’s Bund trades netted her around $400,000 in profits, she said, and her total portfolio is now in the mid-six figures, after taking a hit from the recent drop in prices.

“It’s like a child walking into a candy store,” Ms. Gentry said, noting that she can buy one token, then convert it into another, and then another.

On top of her cryptocurrency investments, Ms. Gentry, a former mortgage underwriter, has found work as a consultant advising DeFi and NFT projects. She’s planning to use her cryptocurrency income to buy an acre in San Antonio. She wants to build a house, with a crypto mining operation in a storage unit next door.

Many people who have gotten wealthy through little-known cryptocurrencies said they didn’t plan to cash out. They said they preferred to HODL, or hold on for dear life, and keep speculating.

Consider Mr. vantKruys, the Luna investor. He said he recently used about $1 million of his cryptocurrency holdings to buy a house for a loved one. But he has no interest in selling his stash of Luna, despite market volatility that led to a drop from $99 to below $50 per coin between December and January.

“My idea is Luna is going to be $500 in five years,” said Mr. vantKruys, who is 45. “That’s the horizon we’re playing with.”

Recently, he has become fixated on another obscure token, Pocket Network, that offers digital infrastructure for a range of blockchain initiatives. (Mr. vantKruys, the managing partner at the crypto fund TRGC, is an adviser on the Pocket Network project.)

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‘Davos Man,’ Marc Benioff and the Covid Pandemic

He frequently tells the story of his supposed inspiration for founding Salesforce. Despite success at Oracle, where he worked early in his career, Mr. Benioff was plagued by existential doubt, prompting him to take a sabbatical to southern India. There, he visited a woman known as “the hugging saint,” who urged him to share his prosperity.

From the incorporation of Salesforce in 1999, Mr. Benioff pledged that he would devote 1 percent of its equity and product to philanthropic undertakings, while encouraging employees to dedicate 1 percent of their working time to voluntary efforts. Salesforce employees regularly volunteer at schools, food banks and hospitals.

“There are very few examples of companies doing this at scale,” Mr. Benioff told me in an interview. He noted that people were always talking to him about another business known for its focus on doing good, Ben & Jerry’s. He said this with a chuckle, clearly amused that his company — now worth more than $200 billion — could be compared to the aging Vermont hippies who had brought the world Cherry Garcia ice cream.

Mr. Benioff is by many indications a true believer, not just idly parroting Davos Man talking points. In 2015, when Indiana proceeded with legislation that would have allowed businesses to discriminate against gay, lesbian and transgender employees, he threatened to yank investment, forcing a change in the law. He shamed Facebook and Google for abusing the public trust and called for regulations on search and social media giants. Early in the pandemic, Salesforce embraced remote work to protect employees.

“I’m trying to influence others to do the right thing,” he told me. “I feel that responsibility.”

I found myself won over by his boyish enthusiasm, and his willingness to talk at length absent public relations minders — a rarity for Silicon Valley.

His philanthropic efforts have been directed at easing homelessness in San Francisco, while expanding health care for children. He and Salesforce collectively contributed $7 million toward a successful 2018 campaign for a local ballot measure that levied fresh taxes on San Francisco companies to finance expanded programs. The new taxes were likely to cost Salesforce $10 million a year.

That sounded like a lot of money, ostensible evidence of a socially conscious C.E.O. sacrificing the bottom line in the interest of catering to societal needs. But it was less than a trifle alongside the money that Salesforce withheld from the government through legal tax subterfuge.

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Why Silicon Valley Can’t Escape Elizabeth Holmes

SAN JOSE, Calif. — In 2016, start-up founders sang, “Theranos doesn’t represent, we are better,” in a holiday video created by the venture capital firm First Round Capital.

Over the next few years, several columnists wrote that Silicon Valley shouldn’t be blamed for Theranos.

Last month, Keith Rabois, a venture capitalist, said on Twitter that articles connecting Theranos with Silicon Valley culture contained “more fabrication than anything ever uttered by Trump.”

The technorati in Silicon Valley and beyond have long tried to separate themselves from Theranos, the blood testing start-up in Palo Alto, Calif., that was exposed for lying about its abilities. But the fraud trial of the company’s founder, Elizabeth Holmes, has shown that just as Bernard Madoff was a creature of Wall Street and Enron represented the get-rich-quick excesses of the 1990s, Theranos and its leader were very much products of Silicon Valley.

a jury found the entrepreneur guilty of four of 11 counts of fraud, starkly underlined her participation in Silicon Valley’s culture.

Ms. Holmes, 37, used the mentorship and credibility of tech industry big shots like Larry Ellison, a co-founder of Oracle, and Don Lucas, a Silicon Valley venture capitalist, to raise money from others. She lived in Atherton, Calif., amid Silicon Valley’s elite and was welcomed into their circles.

She also used the start-up playbook of hype, exclusivity and a “fear of missing out” to win over later investors. She embodied start-up hustle culture by optimizing her life for the maximum amount of work. She dismissed the “haters” and anything that interfered with her vision of a better world. She parroted mission-driven technobabble. She even dressed like Steve Jobs.

No industry wants to be judged only by its worst actors. And many venture capitalists who heard Ms. Holmes’s impossibly lofty claims didn’t fall for them. But if anyone in Silicon Valley was suspicious of her proclamations, none spoke publicly about it until after things went south.

said in a hearing in May before the trial began.

At its best, Silicon Valley is optimistic. At its worst, it is so naïve it believes its own hogwash. Throughout her trial, Ms. Holmes’s lawyers argued she was simply a wide-eyed believer. Any statements that weren’t entirely truthful, they said, were about the future. It was what investors wanted to hear, they said.

“They weren’t interested in today or tomorrow or next month,” Ms. Holmes testified. “They were interested in what kind of change we could make.”

Soon after Theranos got started in 2003, Ms. Holmes used her vision of the future to win over investors and advisers like Mr. Ellison and Mr. Lucas. Mr. Lucas, who was chairman of Theranos’s board until 2013, was involved with more than 20 investment vehicles that backed Theranos. Those included his son’s venture firm, Lucas Venture Group; another vehicle, PEER Venture Partners; and trusts and foundations associated with members of his family.

Bad Blood,” a book by John Carreyrou, a former Wall Street Journal reporter.

Brian Grossman, an investor at the heath care-focused hedge fund PFM Health Sciences, learned about Theranos through Thomas Laffont, a co-founder of Coatue Management, a prominent investment fund with a San Francisco presence. In an email that was part of the court filings, Mr. Laffont gushed that Theranos had “one of the most impressive boards I’ve ever seen” and said Mr. Grossman’s firm should let him know “ASAP” if it was interested in an introduction.

Coatue did not respond to a request for comment and PFM Health Sciences declined to comment.

embraced by many in the tech industry. “This is what happens when you work to change things,” she said in a TV interview. “First they think you’re crazy, then they fight you, and then all of a sudden you change the world.”

In the years since Theranos collapsed, more tech start-ups have followed its strategy of looking outside the small network of Sand Hill Road venture capital firms for funding. Start-ups are raising more money at higher valuations, and deal-making has accelerated. Mutual funds, hedge funds, family offices, private equity funds and megafunds like SoftBank’s Vision Fund have rushed to back them.

Mr. Salehizadeh said Silicon Valley’s shift to a focus on fund-raising over all else was one reason he had left to set up a private equity firm on the East Coast. The big money brought more glitz to tech start-ups, he said, but it had little basis in business fundamentals.

“You’re always left feeling like either you’re an idiot or you’re brilliant,” he said. “It’s a tough way to be an investor.”

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