soared 30 percent in its initial public offering on Wednesday. Amazon indefinitely extended its ban on police usage of its facial recognition software, which has faced ethical criticism. And New York City lifted nearly all of its pandemic restrictions, allowing businesses to welcome customers back at full capacity.

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Elon Musk Impostors Scammed $2 Million in Cryptocurrency, U.S. Says

The proposition was tantalizing: Handsome returns awaited investors who would be willing to provide an infusion of cryptocurrency to Elon Musk, the billionaire chief executive of Tesla and founder of SpaceX, for a moneymaking venture.

It seemed too good to be true, because it was.

Investors lost $2 million in six months to fraudsters who impersonated Mr. Musk, the Federal Trade Commission said in a report released on Monday that was meant to draw attention to a spike in cryptocurrency scams.

The commission found that nearly 7,000 people lost a reported $80 million over all from October through March as part of various scams targeting investors in Bitcoin and other cryptocurrencies like Dogecoin, a nebulous marketplace that Mr. Musk has bullishly promoted on Twitter. The median amount that they lost was $1,900, according to the commission.

The spate of fraud cases — a nearly 1,000 percent increase compared with the same period the previous year, the report said — came as the price of Bitcoin and Dogecoin soared toward record highs.

bought $1.5 billion worth of Bitcoin, which Tesla said was part of an initiative to invest in alternative assets like digital currencies and gold bullion.

accept Bitcoin as payment for cars in the United States, sent the price of Bitcoin skyward by more than 10 percent. But then Mr. Musk reversed course this month, saying that the company will no longer accept the cryptocurrency because of concerns over its effects on the environment.

Mr. Musk has similarly sent mixed messages regarding Dogecoin, which was created as a cryptocurrency parody in 2013 and has recently been booming.

Last week, he polled his 55.1 million followers on Twitter on whether Tesla should accept Dogecoin; 78 percent of respondents said yes. He also revealed last week that SpaceX would launch a satellite to the moon next year in exchange for a payment in Dogecoin. In a May 8 appearance on “Saturday Night Live,” Mr. Musk said that cryptocurrency was both “the future of currency” and “a hustle.”

Joseph A. Grundfest, a professor of law and business at Stanford and a former member of the Securities and Exchange Commission, said in an interview on Monday night that the surge in scams involving cryptocurrency was not at all surprising amid the surging prices.

He said that investors should be more circumspect when faced with propositions like those concocted by the impersonators of Mr. Musk.

“Don’t send cryptocurrency to Elon Musk,” Mr. Grundfest said. “He already has more than he needs.”

The Federal Trade Commission cautioned on Monday in the report that fraudsters had used online dating platforms to lure people into cryptocurrency scams. About 20 percent of the money that people reported losing through romance schemes since October was sent in cryptocurrency, the report said.

The commission also noted that people ages 20 to 49 were more than five times as likely as older people to report losing money on cryptocurrency investment scams.

Cryptocurrency experts cautioned that it was especially difficult for victims of fraud schemes to get their money back and that cryptocurrency had become a preferred payment method for those orchestrating ransomware attacks.

“As a practical matter, there is no recourse,” Mr. Grundfest said. “Why crypto? It’s very simple. It’s very hard to trace.”

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AT&T’s Big Deal With Discovery Unwinds Billions in Mergers

Goldbelly’s growth surpassed its expectations. Sales more than quadrupled last year, and it nearly doubled the number of restaurants on its platform, to 850. That, according to Joe Ariel, its co-founder and C.E.O., was because the company allows restaurants like Di Fara pizzeria in Brooklyn and Parkway Bakery and Tavern in New Orleans to go national: “We’re basically opening up a 3,000-mile radius for restaurants.”

Can that good fortune continue? As in-person dining resumes across the U.S., Ariel concedes that Goldbelly’s phenomenal growth rate last year “is not going to happen forever.” But its newest backers believe that restaurants will keep making online sales part of their businesses. Goldbelly is also counting on maintaining its lead by spending more on marketing, offering livestreamed cooking classes and relying on the loyalty of chefs.


Cryptocurrency’s rise to prominence is reflected in the latest U.S. tax documents (due today, in case you forgot). This year, a virtual currency question tops Form 1040, the individual income tax return form, right after the personal identifying information. The I.R.S. wants to know: “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”

Yes means no, sort of. If you only bought crypto with “real currency” then you aren’t required to answer “yes,” per the I.R.S. But this guidance is not binding, which means you can’t entirely rely on it. This relatively simple question, which is generating consternation among accountants, reflects the greater state of disarray when it comes to digital asset taxation.

Cryptocurrency is property for tax purposes. That means that there is a tax liability for every sale or purchase using crypto, said Amy Kim, the chief policy officer of the Chamber of Digital Commerce, a trade group: “Imagine reporting the gain or loss on every cup of coffee you bought at Starbucks.”

Big Crypto wants the I.R.S. to flip its script. The tax authorities have engaged in an “enforcement-focused approach,” Kim said. “We believe this approach should be reversed — issue practical guidance, then enforce that guidance against those who do not comply.”

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Dogecoin Went Wild in 2021. Here’s What It Taught Us.

Richard Lenz, a 31-year-old project manager for a hazardous waste removal company in North Ridgeville, Ohio, bought his Dogecoin in March 2014, after a subreddit for NASCAR fans banded together to sponsor the driver Josh Wise using cryptocurrency. (Mr. Wise ended up racing in a Doge-wrapped car.)

“Within a year I was done,” he said. “This was like, literally, just a joke.”

Then, a couple months ago, Mr. Lenz started seeing headlines about Dogecoin’s price surging. He also started getting nervous: He knew he’d stored his coins on his old computer’s hard drive, but he wasn’t sure where that drive was.

“I started looking for it a month, two months ago, and couldn’t find it,” he said. Somewhere, he had $10,000 worth of Dogecoin, then $40,000. “My father was kind of upset,” he said, a feeling that intensified as the price climbed.

Mr. Lenz resigned himself to the fact that his coins were gone. “If God wanted me to have the money, I would have had the money,” he said. Then, on May 7, the day before Elon Musk was slated to host “Saturday Night Live,” he found the drive and sold his coins immediately, for around $70,000. (After “S.N.L.,” where Mr. Musk joked about the currency, the price tumbled.)

Mr. Lenz gave a chunk of the money to his parents and plans to help pay for his sister’s wedding. As for the rest? “I am not kidding you when I say I YOLOed it,” he said, on shares of the hedge fund manager Bill Ackman’s SPAC, Pershing Square Tontine Holdings.

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He’s a Dogecoin Millionaire. And He’s Not Selling.

Last February, when Glauber Contessoto decided to invest his life savings in Dogecoin, his friends had concerns.

“They were all like, you’re crazy,” he said. “It’s a joke coin. It’s a meme. It’s going to crash.”

Their skepticism was warranted. After all, Dogecoin is a joke — a digital currency started in 2013 by a pair of programmers who decided to spoof the cryptocurrency craze by creating their own virtual money based on a meme about Doge, a talking Shiba Inu puppy. And investing money in obscure cryptocurrencies has, historically, been akin to tossing it onto a bonfire.

But Mr. Contessoto, 33, who works at a Los Angeles hip-hop media company, is no ordinary buy-and-hold investor. He is among the many thrill-seeking amateurs who have leapt headfirst into the markets in recent months, using stock-trading apps like Robinhood to chase outsize gains on risky, speculative bets.

In February, after reading a Reddit thread about Dogecoin’s potential, Mr. Contessoto decided to go all in. He maxed out his credit cards, borrowed money using Robinhood’s margin trading feature and spent everything he had on the digital currency — investing about $250,000 in all. Then, he watched his phone obsessively as Dogecoin became an internet phenomenon whose value eclipsed that of blue-chip companies like Twitter and General Motors.

disavowed the coin, and even Mr. Musk has warned investors not to over-speculate in cryptocurrency. (Mr. Musk recently sent the crypto markets into upheaval again, after he announced that Tesla would no longer accept Bitcoin.)

What explains Dogecoin’s durability, then?

There’s no doubt that Dogecoin mania, like GameStop mania before it, is at least partly attributable to some combination of pandemic-era boredom and the eternal appeal of get-rich-quick schemes.

But there may be more structural forces at work. Over the past few years, soaring housing costs, record student loan debt and historically low interest rates have made it harder for some young people to imagine achieving financial stability by slowly working their way up the career ladder and saving money paycheck by paycheck, the way their parents did.

Instead of ladders, these people are looking for trampolines — risky, volatile investments that could either result in a life-changing windfall or send them right back to where they started.

posted a screenshot of his cryptocurrency trading app, showing that he’d bought more. And on Thursday, when the value of his Dogecoin holdings fell to $1.5 million, roughly half what it was at the peak, he posted another screenshot of his account on Reddit.

“If I can hodl, you can HODL!” the caption read.

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Coinbase made $771 million in profit in the first quarter, benefiting from crypto mania.

The cryptocurrency exchange Coinbase said on Thursday that its quarterly profit soared by more than 20 times from a year earlier as its revenue skyrocketed, in a sign of how enthusiasm for digital currencies has gone mainstream in the pandemic.

Coinbase said it brought in $1.8 billion in revenue during the first three months of the year, up from $191 million in the same period a year ago. Profits jumped to $771 million from $32 million. It was the company’s first earnings report since it went public last month.

But Coinbase also offered a cautionary note, saying that rivals were swarming the market and increasing competition. The company has been spending heavily on marketing and development to keep ahead of its competitors.

“The rapid expansion of the cryptoeconomy also creates challenges for Coinbase,” it said in a letter to shareholders. “We also have to continue to move quickly to address them, and that inspires us toward action and growth.”

a wave of market manias have gripped the financial world during the pandemic. That surge has also driven growth and profits for Coinbase. It said Thursday that 56 million people were verified on its platform, up from 34 million a year earlier.

But Coinbase’s share price has dropped as cryptocurrencies have fallen from their highs and its market capitalization now stands at $53 billion. On Wednesday, Elon Musk, chief executive of Tesla and a vocal cryptocurrency supporter, tweeted that Tesla would stop accepting Bitcoin as payment for cars, citing environmental reasons, and Bitcoin’s value dropped. One Bitcoin was worth under $50,000 on Thursday, down from more than $63,000 in mid-April.

Coinbase has also faced criticism as it has grown. Customers have said the company has ignored their pleas for help when their digital fortunes were stolen or when they were locked out of their accounts. Current and former employees have also said Coinbase has treated Black and women employees unfairly.

This week, Coinbase said it was increasing compensation for its employees as it tried to stay competitive and reduce uncertainty. Employees will no longer negotiate for salaries when starting at the company, which “can disproportionately leave women and underrepresented minorities behind,” it said in a blog post.

started as a joke, would be available to trade on Coinbase in six to eight weeks.

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Dogecoin Had an Eventful Weekend, Thanks to Elon Musk.

Is Elon Musk really taking Dogecoin to the moon? That’s what the Tesla chief executive has been pledging to do with the jokey cryptocurrency, mostly in terms of cheering on its skyrocketing price. But on Sunday, he tweeted that one of his other companies, SpaceX, is launching a satellite called Doge-1 on a mission paid for with Dogecoin, the DealBook newsletter reports.

Saturday Night Live,” at one point calling the token “a hustle.” Dogecoin, which is based on an internet meme about a Shiba Inu, fell by nearly a third in price on the night of the show. It was such an eventful night for the cryptocurrency that the Robinhood trading app couldn’t keep up. The crypto token is still up more than 10,000 percent in price this year.

SpaceX and Geometric Energy Corporation, a Canadian technology firm, are teaming up to carry a 90-pound satellite on a Falcon 9 moon mission, according to a statement on Sunday. “Having officially transacted with DOGE for a deal of this magnitude, Geometric Energy Corporation and SpaceX have solidified DOGE as a unit of account for lunar business,” said G.E.C.’s chief executive, Samuel Reid. (A company representative confirmed to DealBook that the project was not a joke but declined to explain further.)

growing contingent of lobbyists in Washington and a recent hiring spree of former regulators. This month, the House passed a bill backed by crypto lobbyists to create a working group to examine frameworks for regulating digital assets.

The bill, said Representative Stephen F. Lynch, Democrat of Massachusetts, was a chance “to act proactively toward financial innovation rather than to address gaps in our regulatory framework after the fact.”

The bill is now with the Senate Banking Committee. “Financial regulators have been slow when it comes to protecting consumers from private-sector digital assets that add more risks to our financial system,” Sherrod Brown of Ohio, the committee chair, told DealBook in a statement. He declined to provide a timeline for advancing the legislation.

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Elon Musk’s SpaceX Takes Dogecoin as Payment for Moon Mission

Is Elon Musk really taking Dogecoin to the moon? That’s what the Tesla chief executive has been pledging to do with the jokey cryptocurrency, mostly in terms of cheering on its skyrocketing price. But on Sunday, he tweeted that one of his other companies, SpaceX, is launching a satellite called Doge-1 on a mission paid for with Dogecoin, the DealBook newsletter reports.

Saturday Night Live,” at one point calling the token “a hustle.” Dogecoin, which is based on an internet meme about a Shiba Inu, fell by nearly a third in price on the night of the show. It was such an eventful night for the cryptocurrency that the Robinhood trading app couldn’t keep up. The crypto token is still up more than 10,000 percent in price this year.

SpaceX and Geometric Energy Corporation, a Canadian technology firm, are teaming up to carry a 90-pound satellite on a Falcon 9 moon mission, according to a statement on Sunday. “Having officially transacted with DOGE for a deal of this magnitude, Geometric Energy Corporation and SpaceX have solidified DOGE as a unit of account for lunar business,” said G.E.C.’s chief executive, Samuel Reid. (A company representative confirmed to DealBook that the project was not a joke but declined to explain further.)

growing contingent of lobbyists in Washington and a recent hiring spree of former regulators. This month, the House passed a bill backed by crypto lobbyists to create a working group to examine frameworks for regulating digital assets.

The bill, said Representative Stephen F. Lynch, Democrat of Massachusetts, was a chance “to act proactively toward financial innovation rather than to address gaps in our regulatory framework after the fact.”

The bill is now with the Senate Banking Committee. “Financial regulators have been slow when it comes to protecting consumers from private-sector digital assets that add more risks to our financial system,” Sherrod Brown of Ohio, the committee chair, told DealBook in a statement. He declined to provide a timeline for advancing the legislation.

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As Scrutiny of Cryptocurrency Grows, the Industry Turns to K Street

The board of advisers at the digital chamber is stuffed with former federal regulators, including a former member of Congress and a recent chairman of the Commodity Futures Trading Commission, J. Christopher Giancarlo, who was named to the board of BlockFi, a financial services company that tries to link cryptocurrencies with traditional wealth managers.

Max Baucus, the Democratic former chairman of the Senate Finance Committee, and Jim Messina, a former top Obama adviser, also have recently been named to senior industry posts.

Lobbying disclosure records show that at least 65 contracts as of early 2021 addressed industry matters such as digital currency, cryptocurrency or blockchain, up from about 20 in 2019. Some of the biggest spenders on lobbying include Ripple, Coinbase — the largest cryptocurrency exchange in the United States — and trade groups like the Blockchain Association.

The lobbying burst is one of several recent signs nationwide that the industry is becoming a bigger presence in the economy. FTX, the cryptocurrency trading firm, is spending $135 million to secure the naming rights to the home arena of the Miami Heat.

The billionaire Elon Musk, who hosted “Saturday Night Live” this weekend, was asked about Dogecoin, a cryptocurrency featuring the face of a Shiba Inu dog that was created as a joke but has recently surged in value. “It’s the future of currency. It’s an unstoppable financial vehicle that’s going to take over the world,” Mr. Musk said, before adding, “Yeah, it’s a hustle.” The price of Dogecoin plunged nearly 35 percent in the hours after the show aired.

With the industry’s hires of recent government officials, claims of conflicts of interest are already starting to emerge.

Jay Clayton, who was the S.E.C. chairman until December, is now a paid adviser to the hedge fund One River Digital Asset Management, which invests hundreds of millions in Bitcoin and Ether, two cryptocurrencies, for its clients. Mr. Clayton declined to comment.

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