Good morning readers. In a blast from the past that's more spellbinding than your high school history class, a group in Massachusetts is on a mission to scrub clean the tainted names of the state's alleged 17^th -century broomstick riders. The Massachusetts Witch-Hunt Justice Project is channeling their inner Atticus Finch to right the witchy wrongs of yesteryear, with a modern charm—an online petition casting for 1,000 signatures to clear the names of all who were accused or indicted for witchcraft in the state between 1600 — 1700.

Draco Malfoy would be so proud.

Let’s jump into today’s storylines.

In today’s digest:

• Sam Bankman-Fried guilty on 7 counts of fraud

• Headline Hustle: Six Flags and Cedar Fair merge, Apple sales fall again, Ivanka Trump skips court with school excuse

• Uber & Lyft pay to ride with rules

• Pulse Points: What’s Trending

FINANCE

Sam Bankman-Fried found guilty of fraud in FTX collapse

Once hailed as the golden boy of cryptocurrency, Sam Bankman-Fried's wings have thoroughly melted, leading to a nosedive that ended in a federal jury finding him guilty on all counts of fraud. The verdict is a climax to the saga of FTX's implosion—a tale of billions of dollars in digital dust and dreams dashed. The jury wasn't buying what Bankman-Fried was selling: his actions were painted not as a blunder but as a calculated funneling of funds for everything from debts to donations, leaving FTX customers financially high and dry.

Witness stand wipeout

Choosing to be his own courtroom champion, Bankman-Fried's defense strategy unfolded like a gamble with too many bluffs. His stint on the witness stand, far from a saving grace, became an Achilles' heel as the prosecution's narrative—backed by the confessions of his one-time allies—cast him not as an overtaxed visionary, but as the architect of his empire’s collapse. In the face of such betrayal and testimonies, his "overwhelmed entrepreneur" act did little to sway the court's judgment.

Big picture: The ripple effects of this conviction extend far beyond the personal fate of Bankman-Fried; they reflect a pivotal moment for the unregulated wild west of cryptocurrencies. This legal milestone, spearing through the heart of decentralized finance's cavalier attitude, demands a sobering return to the foundational values of trust, honesty, and oversight. As the narrative around Bankman-Fried shifts from crypto pioneer to cautionary tale, the industry is left to grapple with the sobering truth: without a backbone of regulation, the most innovative financial frontiers can quickly become the lawless ones. His conviction may well be the harbinger of a regulatory renaissance, aiming to restore balance in a market that teeters on the edge of trust.

Headline Hustle

🎢 Six Flags and Cedar Fair are merging. In a landmark $2 billion all-stock merger, amusement titans Six Flags and Cedar Fair are set to create an industry juggernaut, with Six Flags' shareholders receiving 0.58 new shares and Cedar Fair unit holders getting a one-to-one exchange. The fusion will birth a $3.5 billion equity-valued entity, operating under Six Flags' name but trading with Cedar Fair's FUN ticker from Charlotte, N.C. This expanded empire will boast 27 amusement and 15 water parks across North America. Amidst the pandemic recovery phase, where theme parks are yet to hit pre-COVID attendance levels, this deal marks a strategic play for dominating leisure time.

🍎 Apple sales decline for fourth straight quarter. Apple Inc. confronts a challenging landscape as its sales dipped for the fourth consecutive quarter, with revenues hitting $89.5 billion, a marginal decline that nevertheless beat net income expectations at $23 billion. Notably, the tech behemoth witnessed a 2.5% sales contraction in China, its third-largest market, missing the mark set by analysts amid an economic downturn, rising local competition, and regulatory pressures. Despite these headwinds and a broader smartphone market slump, iPhone sales modestly increased by 2.8% to $43.8 billion, buoyed by the new iPhone 15 family launch. While Apple CEO Tim Cook's impromptu China visit signaled strategic prioritization, the firm, mirroring other tech giants, navigates a tense earnings season marked by investor scrutiny despite sectors like cloud computing and AI showing promising returns.

📚 Ivanka Trump delays testimony with school excuse. Ivanka Trump is appealing to delay her testimony in a $250 million New York fraud case against the Trump family business, citing undue hardship due to the timing during a school week. A previous order to testify was appealed after a judge denied her attempt to avoid the stand. New York Attorney General Letitia James opposes the stay of the trial, noting Ivanka's relevant knowledge despite her removal as a co-defendant on statute-of-limitations grounds. Ivanka's legal team argues she's beyond the court's jurisdiction, living in Florida, but James refutes this, stating Ivanka still has New York ties and her testimony is crucial to the case's resolution.

BUSINESS

Uber & Lyft hit a $328M pothole

It’s been a costly Uber ride for ride-hailing giants Uber and Lyft, as they’ve buckled up and agreed to pay a whopping $328 million to settle allegations faster than a New York minute. The office of New York Attorney General Letitia James flagged down the two companies for policies that allegedly dipped into drivers' pockets unfairly, leading to back pay dues for countless current and former drivers. The lion’s share of the settlement, a hefty $290 million, is on Uber's tab, while Lyft is pitching in with a not-so-paltry $38 million.

This isn't just about back pay; it's a ride into the future of workers' rights. By setting an "earnings floor" and ensuring paid sick leave, the settlement could be the GPS navigating gig workers towards rights akin to those in more traditional jobs. It’s also a pothole for the gig economy business models, proving they're not immune to legal speed bumps that could slow down their profitability and operational strategies. Companies like Uber and Lyft may need to recalibrate their GPS to avoid such costly detours.

But hold onto your seatbelts, corporate America — this settlement could shift gears for gig work globally. While Uber and Lyft didn't hang their heads out the window admitting guilt, paying up might as well be a wave of the hand acknowledging the need for a course correction. It’s a clear signal that, innovative or not, these companies are expected to play by the labor law rules. And with Uber hinting at a willingness to pick up regulators on their journey, we could be en route to a new era where tech companies and regulatory bodies share the ride.

SNIPPETS

Pulse Points

• Elon Musk is requesting that a federal judge excuse him from testifying in the SEC's investigation of his $44 billion acquisition of Twitter.

• Starbucks is enhancing its growth strategy by partnering with Apple to test new technologies at its Green Apron Innovation store.

• The FTC's lawsuit reveals "Project Nessie" as an algorithmic pricing scheme by Amazon, which discreetly increased prices to earn the company $1.4 billion.

• PayPal has received a subpoena from the SEC about its U.S. dollar-pegged stablecoin, amid increased regulatory scrutiny, just three months after its entry into the stablecoin market.

• Contestants in the new TV series "007: Road To A Million" undertake global challenges inspired by James Bond for a chance to win 1 million pounds.

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