But first, we’re looking at why FTX cofounder and ex-CEO Sam Bankman-Fried’s criminal trial has implications that could upend the entire crypto industry.

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Yes, Sam Bankman-Fried, not crypto, is the one on trial. But make no mistake: the industry has plenty at risk despite not being listed as a defendant.

(For a refresher on the trial, start here.)

Bankman-Fried, the cofounder and ex-CEO of crypto exchange FTX, was deeply enmeshed in the crypto ecosystem. Simply known as SBF, he became one of the industry’s most recognizable faces (and heads of hair).

Plenty of people were happy to go along for the ride, from high-profile backers like Tom Brady and Kevin O’Leary to startups looking for funding.

That’s why SBF’s trial boils down to crypto’s trial. FTX’s bankruptcy filing and Michael Lewis’ book on Bankman-Fried have been eye-opening, to put it mildly. The proceedings will likely provide more fascinating details about the inner workings of FTX and the broader crypto industry, potentially airing out its dirty laundry and shortcomings.

SBF’s own defense team seems keen to start pointing fingers, according to reporting from Insider’s Katie Balevic, Jacob Shamsian, and Grace Kay. In his opening statements, Mark Cohen, SBF’s defense attorney, shifted blame to Bankman-Fried’s ex-girlfriend, Caroline Ellison, and the volatility of the crypto market.

One crypto exec recently told me the industry “has already learned many lessons from the FTX (and others’) collapse.”

The exec, who asked to remain anonymous, said crypto has transformed for the better, and the trial won’t change anything. They pointed to the wave of bitcoin ETF applications from big players as evidence that crypto is here to stay.

But I’d argue that’s an even bigger risk for the industry. Financial giants could view the details from the trial as evidence for why they should co-opt crypto from smaller, native players.

BlackRock and Fidelity have both filed applications for launching bitcoin ETFs. PayPal unveiled a stablecoin pegged to the US dollar. Visa, too, has pushed further into the space.

In short, big institutions seem primed to take over the space and shape it to their liking.

Some in the crypto industry are embracing a more grown-up approach. A recent industry conference was light on yacht parties and NFTs, instead focusing on regulation and practical tech.

But as more evidence comes out regarding the role that the wider crypto industry played in SBF’s rise and fall, it remains to be seen whether they’ll be part of crypto’s next chapter or pushed aside by bigger players.

🔔 Before the opening bell: U.S. stock futures edge slightly lower as investors look ahead to key jobs data.

2. Oil prices take a dip. After a surge in pricing over the past few months, oil prices have started to slightly fall. The end of peak travel season, along with reports of Russia lifting its ban on diesel exports, has some worrying about “demand destruction.”

3. Where the market is headed, according to the experts. It’s pretty tough to make sense of the market these days. Get perspective from top Wall Street strategists about what’s next after a brutal September.

2. IBM’s CEO said he doesn’t intend to “get rid of” a single programmer because of AI. Arvind Krishna added that, although it could automate a “repetitive, white-collar job,” he thinks AI is a job creator.

3. “I made over $800,000 at Meta. Here’s how I significantly increased my compensation.” When he first joined as a senior engineer in 2017, Rahul Pandey’s total compensation was $390,000. When he left in 2022, he was a tech lead and manager with a total compensation of $823,000.

2. Private credit is a fan favorite among hedge funds. Also called alternative credit or direct lending, the private credit sector is rapidly growing. It’s all thanks to higher interest rates and distressed banks.

3. Some of America’s richest people are simply not paying their taxes. New IRS data revealed that nearly 1,000 people who make more than $1 million annually didn’t file taxes multiple times between 2015 to 2020.

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Dan DeFrancesco, senior editor and anchor, in New York City. Diamond Naga Siu, senior reporter, in San Diego. Hallam Bullock, editor, in London. Lisa Ryan, executive editor, in New York City. Annie Smith, associate producer, in London. Shona Ghosh, deputy executive editor, in London. Jack Sommers, senior editor, in London. Spriha Srivastava, UK bureau chief, in London.

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