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The Fall of FTX and Renewed Mistrust Signal Disaster for Cryptocurrencies

NNPA NEWSWIRE — In a CBS News interview, Treasury Secretary Janet Yellen said the fall of FTX should warn Americans about investing their money in “extremely risky” financial products traded in a space lacking “appropriate supervision and regulation,” adding, “I think this is a space where investors and consumers should really be very careful.”
The post The Fall of FTX and Renewed Mistrust Signal Disaster for Cryptocurrencies first appeared on BlackPressUSA.

Published

1 year ago

December 19, 2022

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

The fall of Cryptocurrencies, the recent wave of the investment craze that includes NFTs and trading cards, has not only ruined bank accounts for some but now has the federal government investigating its dramatic downfall.

FTX, the Bahamas-based cryptocurrency exchange founded just before the pandemic paralyzed America and much of the world, landed in bankruptcy this month, leaving federal authorities perplexed over the fall of the company, which was valued at $32 billion.

Some have compared crypto’s fall to the famed failed Ponzi scheme orchestrated by Bernie Madoff.

“And just as Madoff’s Ponzi scheme fell apart during the 2008 financial crisis, FTX’s collapse arrives amid a broader pullback for the tech industry,” Erin Griffith, a tech writer, penned for the New York Times’s digital newsletter.

“Tech stocks have crashed. Venture capital funding is drying up. As a result, nearly 800 tech companies have laid off more than 120,000 workers this year, with cuts hitting Meta, Amazon, and Twitter,” Griffith noted.

In a CBS News interview, Treasury Secretary Janet Yellen said the fall of FTX should warn Americans about investing their money in “extremely risky” financial products traded in a space lacking “appropriate supervision and regulation,” adding, “I think this is a space where investors and consumers should really be very careful.”

“We have very strong investor and consumer protection laws for most of our financial markets, but in some ways, the crypto space has inadequate regulation.”

Yet, the crypto space has lured not just financial bigwigs but heavyweights in entertainment like Snoop Dogg, Jay-Z, Russell Simmons, and Ja Rule.

Along with friend and business partner Herb Rice, Ja Rule co-founded The Painted House and launched the NFT collection Black Is Beautiful, with a charitable component benefiting historically Black colleges and universities.

Earlier this year, Ja Rule told the Black Press that he wanted to create a space for people of color in the crypto world.

“That’s important. We need to be at that table,” Ja Rule said.

Simmons, the hip-hop architect, and successful businessman said he leaped into the NFT market because he wanted hip-hop pioneers to get their flowers and much-deserved money while still alive.

In collaboration with NFT marketplace Tokau, Simmons’ NFT honored individuals like D.J. Hollywood, Bizzy Bee Starski, and Grandmaster Caz.

Snoop Dogg agreed to curate the NFT collection.

“This is a multi-billion-dollar industry, and so many of the younger generation don’t know the shoulders on whom they stand,” Simmons told the Black Press at his launch party.

“Some of these guys [founders] don’t even have bank accounts, but we have to consider, all of us have to consider. None of us would be here without them.”

Simmons insisted that Snoop Dogg “gets it.”

“He wants to be a part of this. That’s why I love him so much,” Simmons asserted. “Snoop has such a big heart; he cares about these guys.”

In June, Jay-Z announced that he teamed with Twitter Founder Jack Dorsey to launch a new “Bitcoin Academy” for underserved residents – particularly those in Brooklyn, New York’s Marcy Houses.

The plan included adding other locations for the program designed in collaboration with Crypto Blockchain Plug and Black Bitcoin Billionaire.

Jay-Z and Dorsey said their mission included providing education and empowering the community with knowledge.

Program participants were promised MiFi devices, a one-year limited data plan, and smartphones if needed.

Each of the artists has yet to speak on the current state of the crypto space.

This week, a new study found that the District of Columbia topped the list of American states and places that have demonstrated the most interest in NFTs and cryptocurrency.

The study found that Bitcoin sold for a record $68,000 in November 2021, while NFT sales peaked at $12.6 billion in January 2022.

Both have since dropped precipitously.

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” John Ray III, the new CEO of FTX, told MSN as he laid out “a damning description of FTX’s operations under its founder Sam Bankman-Fried, from a lack of security controls to business funds being used to buy employees homes and luxuries.”

“From compromised systems integrity and faulty regulatory oversight abroad to the concentration of control in the hands of a very small group of inexperienced, unsophisticated, and potentially compromised individuals, this situation is unprecedented,” said Ray.

He performed cleanup work in the aftermath of the disastrous Enron scandal.

Griffin wrote in the New York Times newsletter that it would take time and multiple federal investigations to entirely understand what happened behind the scenes at FTX.

However, the impact is already evident.

“Lawmakers are calling for more oversight,” Griffin wrote.

“Crypto die-hards are trying to distance themselves. Critics of this sector of finance are crowing. And for those of you who had, until now, managed to ignore the rise and rise and rise of crypto as a phenomenon? First of all, good for you. And second, you may want to watch this one play out.”

The post The Fall of FTX and Renewed Mistrust Signal Disaster for Cryptocurrencies first appeared on BlackPressUSA.

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IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78

NNPA NEWSWIRE — Born on September 4, 1945, in Los Angeles, California, activist Ramona Edelin’s early years were marked by a commitment to education and social justice. According to her HistoryMakers biography, after graduating from Fisk University with a Bachelor’s degree in 1967, she pursued further studies at the University of East Anglia in England. She earned her master’s degree before completing her Ph.D. at Boston University in 1981.
The post IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78 first appeared on BlackPressUSA.

Published

4 weeks ago

April 3, 2024

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

Once upon a time, Black Americans were simply known as colored people, or Negroes. That is until Ramona Edelin came along. The activist, renowned for her pivotal roles in advancing civil rights, education reform, and community empowerment, died at her D.C. residence last month at the age of 78. Her death, finally confirmed this week by Barnaby Towns, a communications strategist who collaborated with Dr. Edelin, was attributed to cancer.

Born on September 4, 1945, in Los Angeles, California, Edelin’s early years were marked by a commitment to education and social justice. According to her HistoryMakers biography, after graduating from Fisk University with a Bachelor’s degree in 1967, she pursued further studies at the University of East Anglia in England. She earned her master’s degree before completing her Ph.D. at Boston University in 1981.

Edelin’s contributions to academia and activism were manifold. She was pivotal in popularizing the term “African American” alongside Rev. Jesse L. Jackson in the late 1980s.

Jackson had announced the preference for “African American,” speaking for summit organizers that included Dr. Edelin. “Just as we were called Colored, but were not that, and then Negro, but not that, to be called Black is just as baseless,” he said, adding that “African American” “has cultural integrity” and “puts us in our proper historical context.”

Later, Edelin told Ebony magazine, “Calling ourselves African Americans is the first step in the cultural offensive,” while linking the name change to a “cultural renaissance” in which Black Americans reconnected with their history and heritage.

“Who are we if we don’t acknowledge our motherland?” she asked later. “When a child in a ghetto calls himself African American, immediately he’s international. You’ve taken him from the ghetto and put him on the globe.”

The HistoryMakers bio noted that Edelin’s academic pursuits led her to found and chair the Department of African American Studies at Northeastern University, where she established herself as a leading voice.

Transitioning from academia to advocacy, Edelin joined the National Urban Coalition in 1977, eventually ascending to president and CEO. During her tenure, she spearheaded initiatives such as the “Say Yes to a Youngster’s Future” program, which provided crucial support in math, science, and technology to youth and teachers of color in urban areas. Her biography noted that Edelin’s efforts extended nationwide through partnerships with organizations like the National Science Foundation and the United States Department of Education.

President Bill Clinton recognized Edelin’s expertise by appointing her to the Presidential Board on Historically Black Colleges and Universities in 1998. She also co-founded and served as treasurer of the Black Leadership Forum, solidifying her standing as a respected leader in African American communities.

Beyond her professional achievements, Edelin dedicated herself to numerous boards and committees, including chairing the District of Columbia Educational Goals 2000 Panel and contributing to the Federal Advisory Committee for the Black Community Crusade for Children.

Throughout her life, Edelin received widespread recognition for her contributions. Ebony magazine honored her as one of the 100 Most Influential Black Americans, and she received prestigious awards such as the Southern Christian Leadership Award for Progressive Leadership and the IBM Community Executive Program Award.

The post IN MEMORIAM: Ramona Edelin, Influential Activist and Education Advocate, Dies at 78 first appeared on BlackPressUSA.

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Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues

NNPA NEWSWIRE — Recent legislative actions in Tennessee, such as repealing police reform measures enacted after the killing of Tyre Nichols, underscore a troubling trend of undermining local control and perpetuating racist agendas. The new law preventing local governments from restricting police officers’ authority disregards community efforts to address systemic issues of police violence and racial profiling.
The post Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues first appeared on BlackPressUSA.

Published

4 weeks ago

April 3, 2024

Stacy M. Brown

By Stacy M. Brown, NNPA Newswire Senior National Correspondent
@StacyBrownMedia

Tennessee State University (TSU), the state’s only public historically Black college and university (HBCU), faces a tumultuous future as Gov. Bill Lee dissolved its board, a move supported by racist conservatives and MAGA Republicans in the Tennessee General Assembly, who follow the lead of the twice-impeached, four-times indicted, alleged sexual predator former President Donald Trump. Educators and others have denounced the move as an attack on diversity, equity, and inclusion (DE&I) and a grave setback for higher education.

Critics argue that TSU’s purported financial mismanagement is a manufactured crisis rooted in decades of underinvestment by the state government. They’ve noted that it continues a trend by conservatives and the racist MAGA movement to eliminate opportunities for Blacks in education, corporate America, and the public sector.

Gevin Reynolds, a former speechwriter for Vice President Kamala Harris, emphasizes in an op-ed that TSU’s financial difficulties are not the result of university leadership because a recent audit found no evidence of fraud or malfeasance.

Reynolds noted that the disbanding of TSU’s board is not an isolated incident but part of a broader assault on DE&I initiatives nationwide. Ten states, including Tennessee, have enacted laws banning DE&I policies on college campuses, while governors appointing MAGA loyalists to university trustee positions further undermine efforts to promote inclusivity and equality.

Moreover, recent legislative actions in Tennessee, such as repealing police reform measures enacted after the killing of Tyre Nichols, underscore a troubling trend of undermining local control and perpetuating racist agendas. The new law preventing local governments from restricting police officers’ authority disregards community efforts to address systemic issues of police violence and racial profiling.

The actions echo historical efforts to suppress Black progress, reminiscent of the violent backlash against gains made during the Reconstruction era. President Joe Biden warned during an appearance in New York last month that Trump desires to bring the nation back to the 18th and 19th centuries – in other words, to see, among other things, African Americans back in the chains of slavery, women subservient to men without any say over their bodies, and all voting rights restricted to white men.

The parallels are stark, with white supremacist ideologies used to justify attacks on Black institutions and disenfranchise marginalized communities, Reynolds argued.

In response to these challenges, advocates stress the urgency of collective action to defend democracy and combat systemic racism. Understanding that attacks on institutions like TSU are symptomatic of broader threats to democratic norms, they call for increased civic engagement and voting at all levels of government.

The actions of people dedicated to upholding the principles of inclusivity, equity, and justice for all will determine the outcome of the ongoing fight for democracy, Reynolds noted. “We are in a war for our democracy, one whose outcome will be determined by every line on every ballot at every precinct,” he stated.

The post Tennessee State University Board Disbanded by MAGA Loyalists as Assault on DE&I Continues first appeared on BlackPressUSA.

Stacy M. Brown

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Braxton Haulcy and the Expansion of Walker|West Music Academy

May 24, 2023 – Walker West Music Academy gets an early start on expansion. Join us for a Wednesday episode of The …
The post Braxton Haulcy and the Expansion of Walker|West Music Academy first appeared on BlackPressUSA.