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Facebook, TikTok, Twitter failed election integrity test in Kenya’s elections • ZebethMedia

Social media platforms Facebook, TikTok and Twitter did not live up to their election integrity pledges during Kenya’s August elections, according to a new study by the Mozilla Foundation. The report says content labeling failed to stop misinformation, as political advertising served to amplify propaganda. The study found that hours after voting ended in Kenya these social media platforms were awash with mis- and disinformation on candidates that were purported to have won the elections, and that labeling by Twitter and Tiktok was spotty and failed to stop the spread of these falsehoods. It says that the spotty labeling of posts calling the elections ahead of the official announcement affected some parties more than others, which made the platforms seem partisan. Facebook failed majorly on this front by not having “any visible labels” during the elections, allowing the spread of propaganda — like claims of the kidnapping and arrest of a prominent politician, which had been debunked by local media houses. Facebook recently put a label on the original post claiming kidnapping and arrest of the prominent politician. “The days following Kenya’s federal election were an online dystopia. More than even, we needed platforms to fulfill their promises of being trustworthy places for election information. Instead, they were just the opposite: places of conspiracy, rumor, and false claims of victory,” said Odanga Madung, the Mozilla Tech and Society Fellow who conducted the study and previously raised concerns over the platforms inability to moderate content in the lead up to the Kenya’s elections. Mozilla found similar failures during the 2021 German elections. “This is especially disheartening given the platform’s pledges leading up to the election. In just a matter of hours after the polls closed, it became clear that Facebook, TikTok and Twitter lack the resources and cultural context to moderate election information in the region.” Prior to the elections these platforms had issued statements on measures they were taking in the lead up to Kenya’s elections including partnerships with fact-checking organizations. Madung said that in markets like Kenya, where the trust level of institutions is low and challenged, there was need to study how labeling as solution (which had been tested in western contexts) could be applied in these markets too. Kenya’s general election this year was unlike any other as the country’s electoral body the Independent Electoral and Boundaries Commission (IEBC) released all results data to the public in its quest for transparency. Media houses, parties of main presidential contenders– Dr. William Ruto (now president) and Raila Odinga, and individual citizens conducted parallel tallies that yielded varying results, which further “trigger[ed] confusion and anxiety nationwide.” “This untamed anxiety found its home in online spaces where a plethora of mis- and disinformation was thriving: premature and false claims of winning candidates, unverified statements pertaining to voting practices, fake and parody public figure accounts…” Madung added that platforms implemented interventions when it was too late, and ended soon after elections. This is despite knowledge that in countries like Kenya, where results have been challenged in court in the last three elections, more time and effort is required to counter mis- and disinformation. Political advertising The study also found that Facebook allowed politicians to advertise 48 hours to the election day, breaking Kenya’s law, which requires campaigns to end two days before the polls. It found that individuals could still purchase ads, and that Meta applied less stringent rules in Kenya unlike in markets like the U.S. Madung also identified several ads containing premature election results and announcements, something Meta said it did not allow, raising the question of safety. “None of the ads had any warning labels on them — the platform (Meta) simply took the advertiser’s money and allowed them to spread unverified information to audiences,” it said. “Seven ads may hardly be considered to be dangerous. But what we identified along with findings from other researchers suggests that if the platform couldn’t identify offending content in what was supposed to be its most controlled environment, then questions should be raised of whether there is any safety net on the platform at all,” said the report. Meta told ZebethMedia that it “relies on advertisers to ensure they comply with the relevant electoral laws” but has set measures that ensure compliance and transparency including also verifying persons posting ads. “We prepared extensively for the Kenyan elections over the past year and implemented a number of measures to keep people safe and informed- including tools to make political ads more transparent, so people can scrutinize them and hold those responsible to account. We make this clear in our Advertising Standards that advertisers must ensure they comply with the relevant electoral laws in the country they want to issue ads,” said Meta Spokesperson. Mozilla is calling on the platforms to be transparent on the actions they take on their systems to uncover what works in stemming dis- and misinformation, and to initiate interventions early enough (before elections are held) and after sustain the efforts after the results have been declared.

Musk flip-flops on Twitter verification — brings back (some) ‘Official’ badges (in some parts of the world) • ZebethMedia

Strap back in for another Musk-Twitter U-turn: After a wave of impersonation chaos that hit a number of high profile brands and celebrities in recent hours, including an account pretending to be pharma giant Eli Lilly tweeting that insulin in “now free” — surely cooling the last embers of any advertiser ardour for the social media platform — Twitter’s new billionaire owner, Elon Musk, seems to have had another rethink as it appears that an extra layer of “Official” verification has been brought back. Just, er, it depends on where you’re viewing the platform from. (Quick reminder: After the Twitter owner/chaos edgelord’s decision on taking over to devalue Twitter’s legacy ‘blue check’ verification system — by opening it up to anyone who’ll pay him $8 — some of the sane people still left at the company (following Musk’s 50% headcount cull) apparently tried keep up with the madness by rushing out the grey check ‘Official’ badge layer of verification that was applied to some of the legacy verified Twitter accounts (including, briefly, @ZebethMedia). But a few hours later the badges had gone and Musk tweeted that he’d “killed it”.) The Verge spotted the re-reversal (if we can put it that way) earlier, writing that “brands such as Coca-Cola, Twitter, Wired, and Ars Technica have the new-old gray checks”. ZebethMedia’s account has also been re-badged “Official”. However, at the time of typing (and lord knows what might happen in an hour or two at Musk-Twitter), the truth looks a little, uh, greyer — because these returned “Official” badges/grey check marks are not always visible, depending on where in the world you’re looking at Twitter. For eg, if you’re looking at ZebethMedia’s Twitter account with an IP address inside the US the “Official” stamp is visible (below, top). However in some locations outside the US (including the UK and Spain) the verification badge is missing (for now). Although a colleague in India was able to see the Official stamp on our account. So, er, fresh chaos reigns! Now you see it officially badged (top, US IP), now you don’t (above, UK IP)… (Natasha Lomas/ZebethMedia) Is this ‘regional Official verification’ another Musk joke now that he has his hands on the Twitter steering wheel — perhaps aimed at trolling mainstream media? Or is this just a slow global rollout of the U-turn, given he liquidated half the staff and a bunch more have been walking out the door. Frankly, who tf knows. We can’t confirm officially with the company because Twitter sacked its comms department and messages to the press email and individuals still working at Twitter since Musk took over have been ignored. What else is coming? It’s anyone’s guess but Musk tweeted recently (in reply to a Twitter user called “BiasedGirl”) to imply that Official verification status won’t be universally granted to legacy-verified Twitter users — saying: “Far too many corrupt legacy Blue “verification” checkmarks exist, so no choice but to remove legacy Blue in coming months”. Far too many corrupt legacy Blue “verification” checkmarks exist, so no choice but to remove legacy Blue in coming months — Elon Musk (@elonmusk) November 10, 2022 In another recent emission from the previously self-styled Chief Twit, Musk has also stipulated that “parody impersonation” accounts must clearly label themselves as such in their name, not just in their Twitter bio. “Basically, tricking people is no ok,” he added. Advertisers will surely be flocking back to a version of Twitter that’s flooded with verified parody impersonation accounts whose priority tweets trashing their brands are flooding the feeds of the remaining, very confused users. Not. To be more precise, accounts doing parody impersonations. Basically, tricking people is not ok. — Elon Musk (@elonmusk) November 11, 2022

Prediction Capital hits first close of €30M for new fund to back startups addressing UN SDGs • ZebethMedia

Another day, another dollar, and another VC fund launches. But, refreshingly, this one will specifically address the United Nations Sustainable Development Goals. Prediction Capital is a new VC sprung out of the Swiss Family Office infinitas Capital, the investment firm of former entrepreneur and investor Robin Lauber, and formed together with Christopher Chuffart and Kilian Graulich. The fund, which has hit its first close of €30M, will focus on startups covering ConsumerTech and FinTech mainly in the German-speaking DACH region. Another focus will be on businesses that embrace the UN’s Sustainable Development Goals (SDGs), in particular Good Health and Wellbeing, Quality Education, Gender Equality, Decent Work and Economic Growth, Reduced Inequalities, Responsible Consumption and Production, Climate Action, Peace, Justice and Strong Institutions and Partnerships for the Goals.  So far it’s invested in Heritas, Foodetective (Online Infrastructure & Intelligence of the Merchant Industry, raised $2M) and House of Change. Lauber has been in real estate but also brought Dunkin’ Donuts to Switzerland where he successfully exited the business in 2020. Chuffart was most recently at Mountain Partners, a Zurich based VC before moving to i2i Logic (Australian corporate finance FinTech) to open their European HQ. Graulich is former McKinsey & Company.

RIP to FTX? • ZebethMedia

Image Credits: ZebethMedia We had to talk about the news that rocked the crypto world this week in our Thursday episode: the Binance/FTX deal that never was. To begin, we gave you a rundown of WTF just happened with the beef between two of the largest crypto exchanges in the world and how Sam Bankman-Fried’s storied exchange fell so far so fast, bringing down investors, cryptocurrencies and other companies in the space tumbling down with it. Welcome to Chain Reaction, where we unpack and explain the latest in crypto news, drama and trends, breaking things down block by block for the crypto curious. You can listen to the episode below: Once we ran through the background behind the situation that’s been unfolding in real-time this week, we shared our thoughts on the massive implications this fiasco might have for the rest of the crypto industry, from venture capitalists and startups to regulation across the globe. It’s a fascinating backdrop for our conversation at our crypto event in Miami next week, where we’ll be chatting with Binance CEO Changpeng Zhao (CZ), the billionaire who is seen as the catalyst for FTX’s downfall. You can use the promo code REACT for 15% off a General Admission ticket to the event to hear from CZ and plenty of other crypto market players about what the future of this tumultuous industry might hold in the coming months. Chain Reaction comes out every Tuesday and Thursday at 12:00 p.m. PT, so be sure to subscribe to us on Apple Podcasts, Spotify or your favorite pod platform to keep up with the action.

Sequoia Capital writes off its $210M investment in crypto exchange FTX • ZebethMedia

To get a roundup of ZebethMedia’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here. Tech reporting is a lot of things, but it sure ain’t boring, as the chaos around Twitter, crypto, and layoffs continues. We’re just trying to hang on for dear life to try to make some sense of it all. We think we did a pretty decent job, and here, we’ve got a selection of what’s been happening in the past 24 hours of tech. — Christine and Haje. The ZebethMedia Top 3 Another domino falls: It was probably already a fiasco, but Binance deciding to not buy FTX led Sequoia Capital to claim its minority stake in FTX as nothing more than some unrealized gains, Connie reports. Investor letter and everything. Meanwhile, over at our other favorite hot mess: Elon Musk was right when he tweeted that the company would be doing “lots of dumb things.” Darrell reports on one of its latest take-backs (because they seem to accumulate before we even have time to take a breath), where all of these accounts were promised that little blue checkmark in exchange for $8, but as you all know, when you make fake accounts, that means we can’t have nice things. More Twitter changes: Another group of top dogs at Twitter decided to leave the nest. This time it is chief information security officer Lea Kissner, followed by chief compliance officer Marianne Fogarty and chief privacy officer Damien Kieran. The latter two have reportedly resigned today, according to Zack and Ingrid, who teamed up to chase down the details. Startups and VC Denver-based VC firm SpringTime Ventures is pivoting away from its original focus on its home state of Colorado, despite being the only local fund in two of the state’s 10 unicorn companies, Becca reports. It’s also now able to expand its team thanks to raising three times as much money for Fund II, giving SpringTime enough cash on hand to allow its partners to finally pay themselves “a real salary.” New crypto startups forged ahead during Alliance DAO’s demo day on Wednesday amid the FTX implosion. The most recent cohort, known as All9, for Alliance DAO, a web3 accelerator and builder community, presented their ideas on Wednesday during a demo day, exclusively covered by Jacquelyn. And here’s a smattering of other things that caught our beady little eyes today: Use IRS Code Section 1202 to sell your multimillion-dollar startup tax-free Image Credits: BrianAJackson (opens in a new window) / Getty Images Founding teams usually select a corporate structure like an LLC or S-Corp, but those who hope to exit for $10 million or more should consider starting up as a Qualified Small Business (QSB) C-Corporation, advises tax attorney Vincent Aiello. Under IRS Code Section 1202, founders who hold QSB stock for five years or longer will be exempt from paying capital gains tax after a sale. “It constitutes a significant tax savings benefit for entrepreneurs and small business investors,” Aiello says. “However, the effect of the exclusion ultimately depends on when the stock was acquired, the trade or business being operated, and various other factors.” Three more from the TC+ team: ZebethMedia+ is our membership program that helps founders and startup teams get ahead of the pack. You can sign up here. Use code “DC” for a 15% discount on an annual subscription! Big Tech Inc. Elon Musk wants Twitter workers in the office and wants them battling spam. Those were some of the messages the new owner had for his social media staff, Ivan writes. Oh, he also told them to be ready for “difficult times ahead,” which is always something you want to hear from your leader with regard to the future of your job. After the Binance deal fell through, FTX founder Sam Bankman-Fried has some new focuses: winding down trading at Alameda Research and winding up his fundraising prowess, Manish reports. We promise, no more FTX or Twitter below:

More key Twitter execs just quit, including the head of trust and safety • ZebethMedia

Hours after news broke that Twitter lost top cybersecurity executive Lea Kissner, another round of departures deepened the company’s ongoing crisis. Platformer’s Zoë Schiffer first reported that Twitter’s Head of Trust and Safety Yoel Roth quit the company Thursday after just two weeks under Musk’s leadership. Robin Wheeler, who was elevated to lead Twitter’s marketing and sales teams, has also reportedly left the company, according to Bloomberg. Roth, who remained a public face at the company in the brief Musk era and tweeted reassurances about the company’s moderation efforts, is an especially shocking departure. But both executives played a visible role in Musk’s version of the company. Just yesterday Roth and Wheeler moderated a rambling Twitter Space in which Musk shared his vision for the company. Twitter also lost its chief privacy officer Damien Kieran and Chief Compliance Officer Marianne Fogarty on Thursday along with the departure of its CISO. The latest wave of resignations on top of Musk’s erratic behavior and his haphazard mass layoffs are likely to crater whatever advertiser and regulator trust remained in Musk’s ability to run the company. I’ve made the hard decision to leave Twitter. I’ve had the opportunity to work with amazing people and I’m so proud of the privacy, security, and IT teams and the work we’ve done. I’m looking forward to figuring out what’s next, starting with my reviews for @USENIXSecurity 😁 — Lea Kissner (@LeaKissner) November 10, 2022 Per multiple reports, Musk also convened an impromptu all-hands meeting at the company on Thursday, painting a dire picture of its financials and stating that “bankruptcy isn’t out of the question.” Twitter’s new owner repeated his assertion that the company would no longer allow remote work, suggesting that anyone who didn’t report to the office in person would be fired. This story is developing…

FTC warns ‘no CEO or company is above the law’ if Twitter shirks privacy order • ZebethMedia

The FTC has telegraphed what appears to be a now-inevitable investigation into Twitter’s internal data handling practices, as the company continues to shed important staff and improvise new features. “No CEO or company is above the law,” the agency said in a statement — and if Elon Musk’s Twitter continues its current spree, they may find themselves in violation of the FTC’s order and facing serious consequences. To be clear at the outset, the FTC has not announced any investigation into Twitter, Elon Musk, or even that they are gathering information in service of such an investigation. Nor would it be able to confirm it was investigating if it was. But circumstantial evidence, common sense, and the ominous statement issued today leave little doubt that the company is in the agency’s crosshairs. In the course of its ordinary oversight duties, the FTC looks into complaints by consumers, companies, and anyone with a bone to pick about things like misleading advertising, broken privacy promises, illicit business arrangements, and so on. But in 2011 Twitter agreed to a consent decree with the regulator after being found to have misused user data. It was also found to have done so again for many years in an investigation culminating in a $150 million settlement earlier this year, so this isn’t some bygone red tape. This decree required Twitter to establish and maintain a program to ensure and regularly report that its new features do not further misrepresent “the extent to which it maintains and protects the security, privacy, confidentiality, or integrity of any nonpublic consumer information.” The revised order adds more oversight and gives the FTC more power, since evidently Twitter needed a stick as well as a carrot. The gist of it is that Twitter is in the doghouse with the FTC already, and it has specific and legally binding requirements regarding what it can and can’t do with data, and how it verifies that it is in compliance. Around the time of the settlement, Elon Musk entered the stage and now we have all… this. But the news that last night several data handling executives, no doubt important to walking the line with a watchful regulator, all reportedly left at once. Literally minutes after I wrote this paragraph, the company’s head of trust and safety, Yoel Roth, was reported to be leaving as well. NEW: A senior member of Twitter’s legal team just posted this message in Slack:“Everyone should know that our CISO, Chief Privacy Officer and Chief Compliance Officer ALL resigned last night. This news will be buried in the return-to-office drama. I believe that is intentional.” — Zoë Schiffer (@ZoeSchiffer) November 10, 2022   This would be troubling at any company, at any time, under any level of federal scrutiny. But for Twitter the departing chiefs might as well have hired a skywriter to spell out “INVESTIGATE ME” in huge letters above Twitter HQ. (Of course normally that might apply to any number of companies in downtown San Francisco, but right now there’s little question.) The amount of changes, new products, eliminations of various departments and processes (many of which had to do with privacy, fairness, data handling and other crucial topics) don’t mean Twitter is necessarily in violation of the consent decree. But with things going the way they are, it’s quite hard to imagine that it is in compliance now, or it is is, will remain so for long. It’s important, though, to understand that the FTC isn’t like the FBI, kicking doors down and arranging evidence in damning dioramas. The FTC conducts its investigations privately and at great length — they can’t and don’t publicize the fact that they are looking into a company for some violation or another until there is a legally binding consequence like a signed consent decree, settlement, or a decision to go to trial via the Department of Justice. Although many expected the FTC under the leadership of tech skeptic and very smart person Lina Khan to be more proactive, it is limited by law what it can do. It’s actually a bit surprising that the agency got as spicy as it did in the full statement: We are tracking recent developments at Twitter with deep concern. No CEO or company is above the law, and companies must follow our consent decrees. Our revised consent order gives us new tools to ensure compliance, and we are prepared to use them. Though it stops short of saying “We are sharpening our knives,” this statement nevertheless is about as strong an implication that they will be giving Twitter a call soon as they can make. (A juicy tidbit uncovered by CNN’s Brian Fung, while enticing, could relate to ongoing discussions regarding the $150M settlement, so don’t get too excited.) If they decide to pursue an investigation, which would probably happen if there are any red flags at all, let alone this many, it will be done confidentially — but importantly, it is not secret. That means that although it is the FTC’s policy not to reveal or comment on an investigation, a company or person being investigated may do so at any time if they wish. So if the FTC makes a formal request for certain data from Twitter, or deposes its executives (present or former), they may decide to publicize that information. In fact Twitter did this in late 2020, long before the settlement with the FTC was finalized. After all, you don’t want your investors to be the last to hear about something like a $150M charge, even though in telling them you risk discovery by hawk-eyed journalists. So if the FTC investigates Twitter, it’s far more likely that we will hear about it from the company — in a filing with investors or, more likely, from its incautious and prolix CEO during one of his increasingly frequent emergency meetings. The state of chaos at Twitter makes the commonplace observation that we don’t know what it will look like in six months

Google says surveillance vendor targeted Samsung phones with zero-days • ZebethMedia

Google says it has evidence that a commercial surveillance vendor was exploiting three zero-day security vulnerabilities found in newer Samsung smartphones. The vulnerabilities, discovered in Samsung’s custom-built software, were used together as part of an exploit chain to target Samsung phones running Android. The chained vulnerabilities allow an attacker to gain kernel read and write privileges as the root user, and ultimately expose a device’s data. Google Project Zero security researcher Maddie Stone said in a blog post that the exploit chain targets Samsung phones with a Exynos chip running a specific kernel version. Samsung phones are sold with Exynos chips primarily across Europe, the Middle East, and Africa, which is likely where the targets of the surveillance are located. Stone said Samsung phones running the affected kernel at the time include the S10, A50, and A51. The flaws, since patched, were exploited by a malicious Android app, which the user may have been tricked into installing from outside of the app store. The malicious app allows the attacker to escape the app sandbox designed to contain its activity, and access the rest of the device’s operating system. Only a component of the exploit app was obtained, Stone said, so it isn’t known what the final payload was, even if the three vulnerabilities paved the way for its eventual delivery. “The first vulnerability in this chain, the arbitrary file read and write, was the foundation of this chain, used four different times and used at least once in each step,” wrote Stone. “The Java components in Android devices don’t tend to be the most popular targets for security researchers despite it running at such a privileged level,” said Stone. Google declined to name the commercial surveillance vendor, but said the exploitation follows a pattern similar to recent device infections where malicious Android apps were abused to deliver powerful nation-state spyware. Earlier this year security researchers discovered Hermit, an Android and iOS spyware developed by RCS Lab and used in targeted attacks by governments, with known victims in Italy and Kazakhstan. Hermit relies on tricking a target into downloading and installing the malicious app, such as a disguised cell carrier assistance app, from outside of the app store, but then silently steals a victim’s contacts, audio recordings, photos, videos, and granular location data. Google began notifying Android users whose devices have been compromised by Hermit. Surveillance vendor Connexxa also used malicious sideloaded apps to target both Android and iPhone owners. Google reported the three vulnerabilities to Samsung in late 2020, and Samsung rolled out patches to affected phones in March 2021, but did not disclose at the time that the vulnerabilities were being actively exploited. Stone said that Samsung has since committed to begin disclosing when vulnerabilities are actively exploited, following Apple and Google, which also disclose in their security updates when vulnerabilities are under attack. “The analysis of this exploit chain has provided us with new and important insights into how attackers are targeting Android devices,” Stone added, intimating that further research could unearth new vulnerabilities in custom software built by Android device makers, like Samsung. “It highlights a need for more research into manufacturer specific components. It shows where we ought to do further variant analysis,” said Stone.

Even Healthcare lands additional capital to advance primary care adoption in India • ZebethMedia

Even Healthcare, an Indian “healthcare membership” company, landed new financial support in the form of $15 million to further drive its mission of providing affordable care to communities across India. Even isn’t insurance, but allows members to access primary and preventative care at any of over 100 partnered hospitals. Typically, the way Indians access healthcare is through emergency services as opposed to the preventative care model followed in Western countries. They most often pay for services out of pocket, but Even provides what it describes as a more affordable, comprehensive care model. The company said last year when they last raised money that less than 5% of the Indian population has insurance and plans that do exist mainly cover emergency services.  “For us, Even is about giving members access to complete healthcare and building trust like a family doctor,” said co-founder Matilde Giglio. “Right from preventive care to diagnostics to hospitalization, our members will be assured of our support throughout their healthcare journey.” Depending on a user’s financial capabilities, there are three plans they can choose from. The cheapest is ₹ 40 per month ($0.50 USD) which includes unlimited consultations and a care team, but according to the company is meant for individuals looking to still pay for some services out of pocket. The plan gives users a glimpse at the care provided to then transition individuals to the second tier plan, Even Lite. Even Lite costs users ₹ 320 ($4 USD) per month and includes tests, consultations and a care team. For ₹ 528 ($6.54 USD) per month care becomes more comprehensive including COVID-19-specific services, emergency care across India and cashless hospitalization. The company’s standard pricing is for individuals, but it does have group plans for companies and groups. Even currently has 20,000 active members and has partnered with over 100 hospitals since its launch in 2020. Just a year ago the company had 5,000 on a waitlist. The Bangalore-based company asks new users to talk to a doctor to collect health information and assess risk for underlying conditions. According to Giglio, conditions like diabetes, high cholesterol, high BP and obesity are common in India, but often go uncontrolled due to a lack of primary care. The company claims half their new users learned they suffered from diabetes during the onboarding process. The new capital raised comes from Alpha Wave and Aspada (Lightrock). They are joining existing investors Khosla Ventures, Founders Fund, Lachy Groom, Palo Alto Networks CEO Nikesh Arora, CRED CEO Kunal Shah and DST Global partner Tom Stafford. Even first raised a $5 million seed round in 2021 led by Khosla Ventures. This round’s funds will be used to expand its clinical team and scale preventive care in conditions like diabetes, PCOS (polycystic ovary syndrome) and obesity.

Crypto’s crown prince stumbles • ZebethMedia

Welcome back to Chain Reaction. Last week on the podcast, we talked about trouble brewing for bitcoin miners. This week, we had to tear up our plans to cover pretty much anything else and turn our attention to what we think is the biggest story in crypto to unfold this year: the fall from grace of once-revered crypto exchange FTX and its former billionaire founder Sam Bankman-Fried (SBF). Do you want Chain Reaction in your inbox every Thursday? Sign up here: techcrunch.com/newsletters. this week in web3 Here are some of the biggest crypto stories ZebethMedia has covered this week. Sam Bankman-Fried says FTX in talks to raise capital, Alameda Research to wind down trading Sam Bankman-Fried said on Thursday that he will be winding down the trading firm Alameda Research and is attempting to raise liquidity for the troubled FTX International, as he scrambles to keep the world’s second largest crypto exchange alive after a bailout deal with Binance failed earlier this week. Bankman-Fried said in a series of tweets that he is engaging with a “number of players” to raise capital for FTX’s international business and those discussions are at various stages, including letters of intent and term sheet deliberations. Troubled crypto exchange FTX investigated by US regulators over customer funds Crypto trading behemoth FTX fell from grace this week after the exchange experienced a liquidity crunch and agreed to give its rival, Binance, the option to purchase the company’s non-U.S. operations in what appears to be a bailout. Now, U.S. regulators, including the SEC and CFTC, are looking into whether FTX potentially mishandled customer funds on its platform.  Say hello to the newest crypto startups from web3 accelerator Alliance DAO’s demo day New crypto startups forged ahead during Alliance DAO’s demo day on Wednesday amid the FTX implosion. The most recent cohort, known as All9, for Alliance DAO, a web3 accelerator and builder community, presented their ideas on Wednesday during a demo day, exclusively covered by ZebethMedia.  There were about 953 applications for this cohort, but only 17 teams were chosen and graduated from the program. Sequoia Capital marks its FTX investment down to zero dollars Sequoia Capital just marked down to zero the value of its stake in the cryptocurrency exchange FTX — a stake that accounted for a minor percentage of Sequoia’s capital but as of last week likely represented among the most sizable unrealized gains in the venture firm’s 50-year history. It alerted its limited partners in a letter that it sent out to them this evening, a copy of which ZebethMedia obtained and shared in this article. Some crypto VCs see decentralization as the future following FTX collapse (TC+) As the crypto market digests the past few days of chaos, venture capitalists see the moment as a warning, but also as an opportunity for the growth of decentralization and maturation of the larger blockchain space. ZebethMedia spoke with some investors to understand their long-term view of the industry following this week’s news from FTX. the latest pod We had to talk about the news that rocked the crypto world this week in our Thursday episode: the Binance/FTX deal that never was. To begin, we gave you a rundown of WTF just happened with the beef between two of the largest crypto exchanges in the world and how Sam Bankman-Fried’s storied exchange fell so far so fast, bringing down investors, cryptocurrencies and other companies in the space tumbling down with it. Once we ran through the background behind the situation that’s been unfolding in real time this week, we shared our thoughts on the massive implications this fiasco might have for the rest of the crypto industry, from venture capitalists and startups to regulation across the globe. It’s a fascinating backdrop for our conversation at our crypto event in Miami next week, where we’ll be chatting with Binance CEO Changpeng Zhao (CZ), the billionaire who is seen as the catalyst for FTX’s downfall. You can use the promo code REACT for 15% off a General Admission ticket to the event to hear from CZ and plenty of other crypto market players about what the future of this tumultuous industry might hold in the coming months. Chain Reaction comes out every Tuesday and Thursday at 12:00 p.m. PT, so be sure to subscribe to us on Apple Podcasts, Spotify or your favorite pod platform to keep up with the action. follow the money Web3 messaging infrastructure platform Notifi raised a $10 million seed round co-led by Hashed and Race Capital. Web3 API provider Ramp secured $70 million in a Series B funding round, co-led by Mubadala Capital and Korelya Capital. Blockchain fraud prevention startup TRM Labs expanded its Series B funding round by $70 million led by Thoma Bravo with participation from existing investors PayPal, American Express and Citigroup. Eterlast emerged from stealth with $4.5 million to develop web3 games for sports fans. Decentralized search engine Sepana raised $10 million from Hack VC, Pitango First and others. This list was compiled with information from Messari as well as ZebethMedia’s own reporting. Hear CZ for free at TC Sessions: Crypto Who better to give an insider take on the recent Binance/FTX news than Binance chief executive CZ himself? Score a free ticket, get the lowdown and explore the many conversations and networking opportunities at TC Sessions: Crypto on November 17 in Miami. The first 25 readers to register with this will join us in Miami on November 17 for free!

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