Silicon Valley Tech News Roundup – June 5th

FTC report – Americans lost almost $1 billion to crypto scams – 6/3

A study published by the Federal Trade Commission this Friday reveals Americans lost nearly $1 billion to crypto scams since January 2021. The reported losses are from January 1, 2021, to March 31, 2022. According to the report, the median amount of money people lost was $2,600.

The report states: “Crypto has several features that are attractive to scammers… There’s no bank or other centralized authority to flag suspicious transactions and attempt to stop fraud before it happens. Crypto transfers can’t be reversed – once the money’s gone, there’s no getting it back. And most people are still unfamiliar with how crypto works.”

Around $575 million went to “investment” scams, $185 million to “romance” scams, and $133 million went to “government and business impersonation” scams. The rate of losses is skyrocketing – the losses in this period were 60 times higher than the losses reported in 2018. Contrary to cyber trends, younger people in their thirties are most likely to fall victim to crypto scams. But older people are more likely to lose more money per incident.

Sheryl Sandberg leaving Facebook – 6/2

In a Facebook post published this week, Sheryl Sandberg, the chief operating officer of Meta, announced she is leaving the company after 14 years. Javier Olivan, the chief growth officer, will take over her position. Sandberg stated she hopes to focus on philanthropic work and her foundation in the future. After Sandberg announced her departure, Meta shares fell 4%.

Mark Zuckerberg stated in a Facebook post: “Sheryl architected our ads business, hired great people, forged our management culture, and taught me how to run a company… She created opportunities for millions of people around the world, and she deserves the credit for so much of what Meta is today.”

Sandberg’s time at Facebook was not without controversies – the 2016 election, the 2018 Cambridge Analytica scandal, and the Capitol riots after the 2020 election. Likewise, Meta is facing fresh challenges like slower user growth. Also, countries are tightening their social media regulations which directly impacts Meta’s targeted advertising business.

Elon Musk plans to cut 10% of jobs at Tesla – 6/3

In an email sent to Tesla executives on Thursday, Elon Musk said he has a “super bad feeling” about the economy and that the company will have to cut 10% of jobs at Tesla. The title of the email was “pause all hiring worldwide.” Tesla shares fell nearly 3% in the U.S. premarket trade, while the Nasdaq future turned negative and traded at 0.6% lower.

Based on the SEC filing, the company employed almost 100,000 people at Tesla and its subsidiaries at the end of 2021.

Musk also ordered his staff to return to the office full time in an email sent earlier this week. For Tesla employees, remote working is no longer possible. In one of the emails, he wrote: “Everyone at Tesla is required to spend a minimum of 40 hours in the office per week… If you don’t show up, we will assume you have resigned.” When asked to comment on Twitter about people not being willing to adhere to the new policy, he replied they can: “pretend to work somewhere else”.

Lawmakers pushing for the new anti-trust bill before mid-terms – 6/4

The American Innovation and Choice Online Act passed through the Judiciary Committee earlier in the year. Its advocates believe for it to survive, it needs to be ushered through before the mid-terms or by the end of the year.

Also known as the anti-discrimination or self-preferencing bill, it would prohibit tech platforms like Amazon, Google, and Apple from giving preferential treatment to their services in the marketplace they operate.

Experts and advocates claim there is no time spare. They believe if the Republicans control the House after the November vote, the party will follow the caucus leaders who feel the anti-trust reform is not a high priority.

It remains unclear whether the bill has the 60 votes it needs to pass through Senate. The anti-trust bill created a coalition of lawmakers that included conservatives and liberals. But within each party, there are still members hesitant about the approach.