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Law

“Pentagon leaker” sentenced for sharing US military secrets

I guess this is a lesson on why not to use Discord. Former Massachusetts Air National Guard member Jack Teixeira was handed a 15-year prison sentence on Tuesday after pleading guilty last year for leaking highly classified US military documents.

Classified concequences

The FBI arrested Teixeira in North Dighton, Massachusetts, in April 2023, and he has been in federal prison since May 2023. The sentencing follows Teixeira's guilty plea to six federal counts of willful retention and transmission of national defense information in March.

• Teixeira was protected from further Espionage Act charges by prosecutors in return for his guilty plea.

The series of intelligence leaks is considered one of the largest in the last 10 years, and Teixeira has been described as “one of the most prolific leakers of classified information in American history,” by FBI special agent Jodi Cohen.

Officials said the intelligence leak put US personnel at “mortal risk” and damaged relationships with allies.

Discord dissemination

Two years after joining the Air National Guard, Teixeira, a specialist in information technology, received top-secret security clearance in 2021.

• According to court documents, he had been posting weekly updates to a Discord server with various confidential material, including classified information regarding the war in Ukraine.

  • Some documents disclosed troop activity in the area, per US Attorney Joshua S. Levy, while others included information about a foreign adversary’s plan to target US forces abroad.

Teixeira’s attorneys stated that “his intent was never to harm the United States.” They went on to say he only wanted to “educate his friends about world events to make certain they were not misled by misinformation." If only they had been subscribed to NextGen News…

Levy said Teixeria, who is just 22 years old, will serve as an example for those thinking about leaking classified material, adding that “[his] name will be mentioned when people are trained about the gravity of a top-secret clearance and the consequences.”

International

Saudi Arabia’s futuristic megacity is in shambles

In the least surprising news of the day, a megacity built in the middle of the desert is encountering problems. After Nadhmi al-Nasr, the CEO of Neom Development, abruptly quit, it marked yet another hitch in the undertaking of the world’s largest construction project.

Crown Prince Mohammed bin Salman has been trying to diversify Saudi Arabia’s economy for years, as oil makes up for over 40% of its GDP. However, it remains to be seen what exactly makes this city such a good economic investment.

Underestimated undertaking

The nation’s $2 trillion futuristic city, ominously called “The Line”, has been plagued with engineering challenges and financial overloads that typically come with building two giant parallel skyscrapers in the sand:

• Originally planned to be 105 miles long and 33 times the square footage of New York, the development had to be scaled down to a more manageable 1.5 miles.

• Executives wanted 1.5 million people to move into the city by 2030, an expectation that has also been toned down.

Considering the sheer size of the towers (each building is supposed to be 200 feet taller than the Empire State Building) and the complex layout—among other things—construction delays mounted.

Management madness

Taking aside the other issues, the project has also been a breeding ground for mismanagement. Nasr, who was CEO of the development from 2018, garnered a dictatorial reputation, said he treats everyone “like a slave.”

• Wayne Borg, head of Neom’s media division, said three workers who died on the project were “f—ing morons,” and stated his annoyance that the deaths would be bad for PR.

• One executive, Antoni Vives, worked on the megacity after being charged with fraud in Spain but later quit.

  • One top manager remains under investigation for corruption in his home country, and several others have been investigated for embezzlement.

Looking forward: Considering all of that, the project’s new interim CEO, Aiman al-Mudaifer, an expert in real estate from Saudi Arabia's national wealth fund, shouldn’t have too hard of a job replacing Nasr.

Finance

Crypto holders basically won the election

Crypto found its savior with this election. Since Donald Trump became the President-elect last week, crypto has been off to the races. Bitcoin is the main driver of growth, however, Ethereum and Dogecoin have also continued to surge.

Crypto mania

Since Trump’s election win, Bitcoin has skyrocketed 32%, hitting a record price of 93,000, and has continued to grow. Ethereum has shot up 31%, and Dogecoin has ballooned as much as 150% but is still overshadowed by its 2021 peak.

• On Tuesday, Dogecoin actually surpassed Ford in market value, with its market cap sitting at $58.8 billion as of Wednesday.

As crypto rides the wave of enthusiasm since the re-election of Donald Trump, the President-elect has recently become a staunch supporter of the digital currency, calling it an “incredible technology”.

But it isn’t just a huge parade for Trump: During the election cycle, an estimated $245 million was spent by the cryptocurrency sector to support pro-digital currency candidates, most of whom have won.

• In contrast, the industry has opposed the Biden administration's attempts to regulate cryptocurrencies (which mostly function in a legal gray area) for years.

Going forward: The odds of Bitcoin reaching $100,000 this year increased to 71% on Polymarket on Wednesday, indicating that many investors think the crypto frenzy won't slow down anytime soon.

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Grab Bag

Amazon wants its drivers to wear smart glasses

Delivery workers can rejoice now that smart glasses can map out a dog’s location for them (I’m serious). Following the success of Meta's Ray-Ban smart glasses, which have sold over 700,000 units, competitors such as Apple, and now Amazon, are taking a look at the same market.

The e-commerce giant is creating a version of its Echo Frames smart glasses that would be accessible to its delivery drivers (not consumers), helping them trim time off deliveries by providing them with location details.

Delivery device

The glasses will feature a built-in Alexa that guides drivers in and around buildings, giving turn-by-turn navigation, like telling them which way to go after they exit a staircase and what room number to stop at.

• It also has a built-in dog detection feature, so drivers no longer have to worry about the one neighbor who refuses to keep their dog on a leash (for some reason).

While Amazon thinks the tech could shave off seconds of each delivery and ultimately save countless hours, production of the smart glasses has hit a speedbump:

• It would take years to collect all of the data needed for the glasses to function properly.

• The battery currently isn't lasting for the full eight-hour shift drivers would need it for.

• Plus, drivers still need to be convinced to wear the device, which could be cumbersome and likely not fashion-forward.

Hard sell: Amazon could make the glasses a potential time saver to get a leg up on deliveries but it’s been difficult to sell them to consumers. The company has only sold around 10,000 Echo Frames, a small figure compared to Meta’s 700,000.

Bankers should expect some big bonuses

If you know a banker ask them to give you a better Christmas gift this year. According to a report released this week from consultant Johnson Associates, Wall Street bankers can expect fatter bonus checks across the board toward the end of this year.

The bigger bonuses indicate that the banking industry has bounced back from its post-pandemic downturn and is optimistic about its prospects, especially since incentive pay was reduced over the past two years.

How big of a bonus?

It depends on what kind of banker you are. While nearly all Wall Street bankers will see bigger bonuses, not everyone will get the same bump in pay.

• Currently, according to the New York State Comptroller’s Office, the average yearly bonus for a Wall Street banker sits around $176,500.

So who gets the biggest increase? That would be debt underwriters. As revenue pours in from debt insurance growth, those in the position should see anywhere from a 25% to 35% pay bump from last year.

• Next up are equity underwriters, who are projected to get increases as much as 25%, according to the report.

• Asset and wealth management bankers will see a 7% to 12% bonus hike.

• Bankers in mergers and acquisitions should see a 5% to 10% bump, though the Fed’s plans to lower interest rates could lead to a bigger increase next year.

  • Fixed-income sales and investment bankers should see the same pay bump.

The bonuses this year will likely be the biggest since 2021 when Wall Street made bank (no pun intended) thanks to interest rates that were close to zero. Additionally, Alan Johnson, managing director of Johnson Associates, said “Firms are optimistic about 2025”, signaling the influx of cash could spiral into next year.

Fast Facts

Butter Boom: 80,000 pounds of butter were recalled by Costco because the labels did not state that milk was included. Someone call the Costco Guys.

Going Golfing: For the first time in eight years, South Korean leader Yoon Suk Yeol has resumed golf practice, according to the country's presidential office, in anticipation of "golf diplomacy" with President-elect Trump, who is an avid golfer. 

Boring Bout: Today, the boxing match between 27-year-old Jake Paul and 58-year-old Mike Tyson will take place in Dallas' AT&T Stadium and be streamed live on Netflix.

FEMA Fired: A FEMA employee was dismissed after telling a hurricane relief team to avoid helping houses with pro-Trump yard signs.

Plagiarism Platform: Chegg, the online education platform college students used to cheat learn during the pandemic, has lost about $15 billion in market value due to a 99% stock decline since 2021.