Posted on

Week in Review: Snapchat strikes back

Hello hello, and welcome back to Week in Review. Last week, I wrote about the possibility of a pending social media detente, this week I’m talking about a rising threat to Facebook’s biz.

If you’re reading this on the TechCrunch site, you can get this in your inbox here, and follow my tweets here. And while I have you, my colleague Megan Rose Dickey officially launched her new TechCrunch newsletter, Human Capital! It covers labor and diversity and inclusion in tech, go subscribe!


Image: TechCrunch

First off, let me tell you how hard it was to resist writing about Quibi this week, but those takes came in very hot the second that news dropped, and I wrote a little bit about it here already. All I will say, is that while Quibi had its own unique mobile problems, unless Apple changes course or dumps a ton of money buying up content to fill its back library, I think TV+ is next on the chopping block.

This week, I’m digging into another once-maligned startup, though this one has activated quite the turnaround in the last two years. Snap, maker of Snapchat, delivered a killer earnings report this week and as a result, investors deemed to send the stock price soaring. Its market cap has nearly doubled since the start of September and it’s clear that Wall Street actually believes that Snap could meaningfully increase its footprint and challenge Facebook.

The company ended the week with a market cap just short of $65 billion, still a far cry from Facebook $811 billion, but looking quite a bit better than it was in early 2019 when it was worth about one-tenth of what it is today. All of a sudden, Snap has a new challenge, living up to high expectations.

The company shared that in Q3, it delivered $679 million in reported revenue, representing 52% year-over-year growth. The company currently has 249 million daily active users, up 4% over last quarter.

Facebook will report its Q3 earnings next week, but they’re still in a different ballpark for the time being, even if their market cap is just around 12 times Snap’s, their quarterly revenue from Q2 was about 28 times higher than what Snap just reported. Meanwhile, Facebook has 1.79 billion daily actives, just about 7 times Snapchat’s numbers.

Snap has spent an awful lot of time proving the worth of features they’ve been pushing for years, but the company’s next challenge might be diversifying their future. The company has been flirting with augmented reality for years, waiting patiently for the right moment to expand its scope, but Snap hasn’t had the luxury of diverting resources away from efforts that don’t send users back to its core product. Some of its biggest launches of 2020 have been embeddable mini apps for things like ordering movie tickets or bite-sized social games that bring even more social opportunities into chat.

Snap’s laser focus here has obviously been a big part of its recovery, but as expectations grow, so will demands that the company moves more boldly into extending its empire. I don’t think Snapchat needs to buy Trader Joe’s or its own ISP quite yet, but working towards finding its next platform will prevent the service from settling for Twitter-sized ambitions and give them a chance at finding a more expansive future.


Image Credits: Bryce Durbin

Trends of the Week

These next few weeks are guaranteed to be dominated by U.S. election news, so enjoy the diversity of news happenings out there while it lasts…

Quibi is dead
Few companies that have raised so much money have appeared quite dead-on-arrival as Jeffrey Katzenberg’s mobile video startup Quibi. This week, the company made the decision to shut down operations and call it quits. More here.

Pakistan unbans TikTok
It appears that the cascading threat of country-by-country TikTok bans has stopped for now. This week, TikTok was unblocked in Pakistan with the government warning the company that it needed to actively monitor content or it would face a permanent ban. Read more here.

Facebook Dating arrives in Europe
Facebook Dating hasn’t done much to unseat Tinder stateside, but the service didn’t even get the chance to test its luck in Europe due to some regulatory issues relating to its privacy practices. Now, it seems Facebook has landed in the tentative good graces of regulatory bodies and has gotten the go ahead to launch the service in a number of European countries. Read more here.

Until next week,

Lucas M.

Read More

Posted on

Oil Industry Expresses Concern, Not Alarm, About Biden Comments

HOUSTON — Joseph R. Biden Jr.’s promise that he would “transition” the country away from oil and natural gas might hurt him politically in Texas and Pennsylvania, but it did not come as a surprise to many in the energy industry.

Oil and gas executives have been keenly aware that the world is starting to move from fossil fuels toward renewable energy, although they strongly argue that their industry will continue to provide cheap and plentiful energy for decades to come. And several of them said on Friday that while they did not like Mr. Biden’s comments, they were not alarmed by them, either.

What ultimately matters to the industry is not whether there would be an energy transition, but how rapid it would be and whether companies would be allowed to exploit oil and gas reserves by offsetting their environmental impact by capturing and storing greenhouse gas emissions.

Large European oil companies are embracing the change that Mr. Biden called for as concerns over climate change grow and investors begin to shun fossil-fuel businesses. For example, BP has announced that over the next decade it will shrink its oil and gas production by 40 percent and increase investments of renewables tenfold, to $5 billion a year.

But the U.S. oil industry, which has donated much more to President Trump’s campaign than to Mr. Biden’s, has been more reluctant to change its business models.

Executives note that natural gas is rapidly replacing coal, the dirtiest fossil fuel. Gas also complements renewables by providing power when the sun does not shine and the wind is still. Some energy executives have even endorsed levying a tax on the emissions that are causing climate change, arguing that it would create incentives for carbon capture and storage, which would reduce emissions.

“There needs to be a large workhorse, and ultimately that is what we are,” said George Stark, director of external affairs for Cabot Oil and Gas, which has extensive natural gas operations in Pennsylvania. “We complement wind and solar. You need something that can run on an ongoing basis.”

Keep up with Election 2020

Mr. Stark, like others in the industry, said he found Mr. Biden’s comments concerning, but stopped short of criticizing the former vice president harshly. “The opportunity will be there for a greener dialogue that has to take place regarding this whole notion of a transition,” he said.

In Thursday’s debate, Mr. Biden said he would seek to replace fossil fuels with renewables “over time,” noting that the oil industry “pollutes significantly.”

But he had previously said he was against ending hydraulic fracturing of shale fields, a common practice in Pennsylvania, Texas and Ohio. And some oil and gas executives said they liked parts of an energy plan that Mr. Biden put out this summer.

After the debate, Mr. Biden sought to clarify his remarks by saying fossil fuels would not be eliminated until 2050. In remarks that seemed designed to appeal to Democratic progressives and working-class voters who rely on fossil fuel jobs, he added that he wanted to eliminate fossil fuel subsidies.

“Of course we were disappointed in the vice president’s comments,” Mike Sommers, president of the American Petroleum Institute, the industry’s leading lobbying group in Washington, said in an interview. “You can’t just snap your fingers and get to a place where you are suddenly no longer using natural gas.’’

But Mr. Sommers also noted that Mr. Biden had expressed enough ambiguity that a rapid change in oil and gas shale fields was not likely.

The timing of the transition is hard to pin down, in part because the energy industry has been undergoing rapid change in recent years. The United States was importing increasing amounts of oil and natural gas just 15 years ago when suddenly hydraulic fracturing produced a glut of both fuels and made the United States a large exporter.

Now electric cars are becoming increasingly popular, and the costs of wind and solar power are dropping rapidly. Coal, which was the dominant power fuel at the beginning of the century, is in deep decline, losing out to natural gas and renewables.

“The fact that oil and gas are 70 percent of the world’s energy means that you can’t change that on a dime,” said Jon Olson, chairman of the petroleum and geosystems engineering department at the University of Texas at Austin. “If we don’t manage the transition really well, we could end up with energy shortages and all kinds of disasters.”

That still leaves the enduring politics of oil and gas in places, like Ohio, Pennsylvania and Texas, that the Democrats would like to win but where tens of thousands of jobs are directly or indirectly linked to fossil fuel production or processing. One plant, being built by Royal Dutch Shell in Western Pennsylvania to produce plastics from a natural gas byproduct, is providing construction jobs for thousands of workers.

After watching the debate, Mike Belding, chairman of the Greene County Commission in Western Pennsylvania, said he was concerned about the economic consequences of a Biden presidency.

“Regionally, coal, natural gas and oil have been an economic and work force-driving industry over the past century,” he said in an email. “Newly developed technology, like fracking and cracker plant operations, have great potential to drive our economies for the next century.”

But the growth of oil and gas exploration in recent years has also angered some voters in Pennsylvania, who said it had not been an economic boon to many residents and criticized the industry’s environmental record.

“We’ve been transitioning, and let’s keep transitioning,” said Lois Bower-Bjornson, a resident of Washington County in Southwestern Pennsylvania and a field organizer for the Clean Air Council, an environmental group. “It’s a question of economics. They’ve produced too much gas and have nowhere to put it.”

Peter Eavis contributed reporting.

Posted on

Amazon launches a program to pay consumers for their data on non-Amazon purchases

Amazon has launched a new program that directly pays consumers for information about what they’re purchasing outside of Amazon.com and for responding to short surveys. The program, Amazon Shopper Panel, asks users to send in 10 receipts per month for any purchases made at non-Amazon retailers, including grocery stores, department stores, drug stores and entertainment outlets (if open), like movie theaters, theme parks, and restaurants.

Amazon’s own stores, like Whole Foods, Amazon Go, Amazon Four Star and Amazon Books do not qualify.

Program participants will take advantage of the newly launched Amazon Shopper Panel mobile app on iOS and Android to take pictures of paper receipts that qualify or they can opt to forward emailed receipts to receipts@panel.amazon.com to earn a $10 reward that can then be applied to their Amazon Balance or used as a charitable donation.

Amazon says users can then earn additional rewards each month for every survey they complete. The optional surveys will ask about brands and products that may interest the participant and how likely they are to purchase a product. Other surveys may ask what the shopper thinks of an ad. These rewards may vary, depending on the survey.

The program is currently opt-in and invite-only, and is also only open to U.S. consumers at this time. Invited participants can now download the newly launched Shopper Panel app and join the panel. Other interested users can use the app to join a waitlist for an invite.

Image Credits: Amazon

Amazon claims it will delete any sensitive information from the receipts users upload, like prescription information. But it doesn’t delete users’ personal information, instead storing it in accordance with its existing Privacy Policy. It will allow users to delete their previously uploaded receipts, if they choose, but it’s not clear that will actually remove collected data from Amazon’s systems.

Consumer research panels are common operations, but in Amazon’s case, it plans to use the data in several different ways.

On the website, Amazon explains it “may use” customer data to improve product selection at Amazon.com and Whole Food Market, as well as to improve the content selection offered through Amazon services, like Prime Video.

Amazon also says the collected data will help advertisers better understand the relationship between their ads and product purchases at an aggregate level and will help Amazon build models about which groups of customers are likely to be interested in certain products.

And Amazon may choose to offer data to brands to help them gain feedback on existing products, the website notes.

Image Credits: Amazon

The program’s launch follows increased scrutiny over Amazon’s anti-competitive business practices in the U.S. and abroad when it comes to using consumers’ purchase data.

Amazon came under fire from U.S. regulators over how it had leveraged third-party merchants’ sales data to benefit its own private label business. When Amazon CEO Jeff Bezos testified before Congress in July, he said the company had a policy against doing this, but couldn’t confirm that policy hadn’t been violated. The retailer may also be facing antitrust charges over the practice in the E.U..

At the same time, Amazon has been increasing its investment in its advertising business, which grew by 44% year-over-year in Q1 to reach $3.91 billion. That was a  faster growth rate than both Google (13%) and Facebook (17%), even if tiny by comparison — Google ads made $28 billion that quarter and Facebook made $17.4 billion, Digiday reported.

As the pandemic has accelerated the shift to e-commerce by 5 years or so, Amazon’s need to better optimize advertising space has also been sped up — and it may rapidly need to ingest more data that what it can collect directly from its own website.

In a message to advertisers about the program’s launch, Amazon positioned its e-commerce business as a small piece of the overall retail market — a point it often makes in hopes of avoiding regulation:

“In this incredibly competitive retail environment, Amazon works with brands of all sizes to help them grow their businesses not just in our store, but also across the myriad of places customers shop. We also work hard to provide our selling partners—and small businesses in particular—with tools, insights, and data to help them be successful in our store. But our store is just one piece of the puzzle. Customers routinely use Amazon to discover and learn about products before purchasing them elsewhere. In fact, Amazon only represents 4% of US retail sales. Brands therefore often look to third-party consumer panel and business intelligence firms like Nielsen and NPD, and many segment-specific data providers, for additional information. Such opt-in consumer panels are well-established and used by many companies to gather consumer feedback and shopping insights. These firms aggregate shopping behaviors across stores to report data like average sales price, total units sold, and revenue on tens of thousands of the most popular products.”

The retailer then explained that the Shopper Panel could help it to support sellers and brands by offering additional insights beyond its own store.

Amazon doesn’t say when the program waitlist will be removed, but says anyone can sign up starting today.

Read More

Posted on

US charges Russian hackers blamed for Ukraine power outages and the NotPetya ransomware attack

Six Russian intelligence officers accused of launching some of the “world’s most destructive malware” — including an attack that took down the Ukraine power grid in December 2015 and the NotPetya global ransomware attack in 2017 — have been charged by the U.S. Justice Department.

Prosecutors said the group of hackers, who work for the Russian GRU, are behind the “most disruptive and destructive series of computer attacks ever attributed to a single group.”

“No country has weaponized its cyber capabilities as maliciously or irresponsibly as Russia, wantonly causing unprecedented damage to pursue small tactical advantages and to satisfy fits of spite,” said John Demers, U.S. assistant attorney general for national security. “Today the department has charged these Russian officers with conducting the most disruptive and destructive series of computer attacks ever attributed to a single group, including unleashing the NotPetya malware. No nation will recapture greatness while behaving in this way.”

The six accused Russian intelligence officers. Image Credits: FBI/supplied

In charges laid out Monday, the hackers are accused of developing and launching attacks using the KillDisk and Industroyer (also known as Crash Override) to target and disrupt the power supply in Ukraine, which left hundreds of thousands of customers without electricity two days before Christmas. The prosecutors also said the hackers were behind the NotPetya attack, a ransomware attack that spread across the world in 2017, causing billions of dollars in damages.

The hackers are also said to have used Olympic Destroyer, designed to knock out internet connections during the opening ceremony of the 2018 PyeongChang Winter Olympics in South Korea.

Prosecutors also blamed the six hackers for trying to disrupt the 2017 French elections by launching a “hack and leak” operation to discredit the then-presidential frontrunner, Emmanuel Macron, as well as launching targeted spearphishing attacks against the Organization for the Prohibition of Chemical Weapons and the U.K.’s Defense Science and Technology Laboratory, tasked with investigating the use of the Russian nerve agent Novichok in Salisbury, U.K. in 2018, and attacks against targets in Georgia, the former Soviet state.

The alleged hackers — Yuriy Sergeyevich Andrienko, 32; Sergey Vladimirovich Detistov, 35; Pavel Valeryevich Frolov, 28; Anatoliy Sergeyevich Kovalev, 29; Artem Valeryevich Ochichenko, 27; and Petr Nikolayevich Pliskin, 32 — are all charged with seven counts of conspiracy to hack, commit wire fraud and causing computer damage.

The accused are believed to be in Russia. But the indictment serves as a “name and shame” effort, frequently employed by Justice Department prosecutors in recent years where arrests or extraditions are not likely or possible.

Read More

Posted on

U.S. Unemployment Claims Remained Elevated Last Week

Applications for jobless benefits remained high last week, even as the collapse of stimulus talks in Washington raised fears of a new wave of layoffs.

Unemployment filings have fallen swiftly from their peak of more than six million last spring. But that progress has recently stalled at a level far higher than the worst weeks of past recessions. That pattern continued last week, the Labor Department said Thursday: More than 800,000 Americans filed new applications for state benefits, before adjusting for seasonal variations, roughly in line with where the total has been since early August.

“The level of claims is still staggeringly high,” said Daniel Zhao, senior economist at the career site Glassdoor. “We’re seeing evidence that the recovery is slowing down, whether it’s in slowing payroll gains or in the sluggish improvement in jobless claims.”

That slowdown comes as trillions of dollars in government aid to households and businesses has dried up. Prospects for a new stimulus package, already dubious in a divided Washington, appeared to fall apart this week when President Trump said he was pulling out of negotiations. Economists across the ideological spectrum warn that the loss of federal help will lead to more layoffs and business failures, and more pain for families.

The continued high level of jobless claims, combined with large monthly job gains, highlights the remarkable level of churn still roiling the U.S. labor market. Companies are continuing to rehire workers as they reopen, even as other companies cut jobs in response to still-depressed demand for goods and services. The result is a job market that is being pulled in two directions at once — and economic data that can appear to tell contradictory stories.

Adding to the challenge for analysts and forecasters, the pandemic has thrown the data itself into disarray. For the second week in a row, the jobless claims data carried a Golden-State-size asterisk: California last month announced that it would temporarily stop accepting new unemployment applications while it addressed a huge processing backlog and installed procedures to weed out fraud.

In the absence of up-to-date data, the Labor Department is assuming California’s claim number was unchanged from its pre-shutdown figure of more than 225,000 applications, or more than a quarter of the national total. The state began accepting new filings this week, and is expected to resume reporting data in time for next week’s report.

While the lack of data from California makes week-to-week comparisons difficult, the bigger picture is clear: The economic recovery is losing momentum, even as millions of Americans remain out of work.

Monthly jobs data released last week showed that job growth slowed sharply in September, and that last spring’s temporary furloughs are increasingly turning into permanent job losses. Major corporations like Disney and Allstate have announced thousands of new job cuts. And with winter approaching, restaurants and other businesses that were able to shift operations outdoors during warmer weather could be forced to pull back anew.

Separate data from the Census Bureau on Wednesday showed that 8.3 million Americans reported being behind on rent in mid-September, and 3.8 million reported that they were likely to be evicted in the next two months. Both figures have changed little since August.

“It seems increasingly unlikely that we’ll have a deal before the election, and bills are due now,” Mr. Zhao said. “Every week that passes puts extra pressure on workers’ households and small businesses, so any delay in the stimulus is going to have a meaningful impact on Americans.”

The situation is particularly dire for people who lost their jobs early in the pandemic, many of whom are now nearing the end of their unemployment benefits.

Last week was the 29th week since mass layoffs began in March. In most states, regular unemployment benefits last just 26 weeks, meaning that many people have already exhausted their benefits.

In March, Congress created a program funded by the federal government for people whose state benefits have expired. The number of recipients under that program, Pandemic Emergency Unemployment Compensation, swelled to nearly two million in mid-September, up from 1.4 million a month earlier.

The program adds only 13 weeks of additional benefits, however, so people who lost their jobs in March will receive those benefits only until mid-December. And the entire program will expire at the end of the year if Congress doesn’t extend it.

A separate program, which existed before the pandemic, offers an additional 13 to 20 weeks of benefits, depending on the state. But the benefits are based on state economic conditions, and the rapid decline in the unemployment rate means that workers in several states, including Idaho, Wyoming and Utah, would no longer qualify for it. Missouri will join their ranks next week.

Another emergency program, Pandemic Unemployment Assistance, also expires at the end of the year. That program covers freelancers, self-employed workers, part-timers and others who don’t qualify for benefits under the regular unemployment system. More than 460,000 people filed new applications under the program last week, and millions are receiving benefits in total.

The net result is that potentially millions of workers could see their benefits expire this winter. Epidemiologists warn that cases of the coronavirus are likely to rise as temperatures drop, and winter weather could reduce job opportunities.

“People are going to have their backs against the wall, and it’s pretty much the worst time of the year for the program to end,” said AnnElizabeth Konkel, an economist at the employment site Indeed.

Posted on

Bringing micromobility to Africa

When you look at maps of micromobility across the world, it appears there’s not a ton of activity throughout Africa. Well, that’s because there’s not, Gura Ride founder and CEO Tony Adesina said at TC Sessions: Mobility.

In Africa, there are “very few” micromobility operators, Adesina said. “Almost non-existent.”

That’s why launching bike and scooter share in Africa, and specifically Rwanda was strategic, he said. In Kigali, there are many bike lanes and cycling is quite popular in Rwanda, Adesina said. But bikeshare and scooters are “completely new to them.”

Gura Ride has been in operation for the last couple of years and says people are generally receptive to the idea. Still, it hasn’t attracted the same type of market activity as other places.

“Africa is quite unique,” Adesina said. “I don’t think it’s somewhere where you can bring an existing model, maybe that worked in the States or the UK and just dump in a country like South Africa or Rwanda. You have to understand the culture and the people you’re dealing with. It takes quite some time. You have to study the terrain and make sure the model you run in the U.S. or the U.K. can actually fit. Another thing is price. The buying power is not as heavy as you have in the States. So the numbers have to make sense and you have to make sure that the market you’re going into can meet your projected goals.”

That’s partly why Voi, which has gained a stronghold across Europe, has yet to launch in Africa. Voi CEO Fredrik Hjelm noted how the cost of supply and operations is pretty much the same wherever it operates, so in markets where there is less willingness among riders to pay higher costs, it makes it “very, very difficult to operate profitably,” he said.

Once Voi can bring down the costs of operations, it will be easier to launch in more markets and operate profitably there, Hjelm said.

“So there is definitely a time where we will be able to make markets with lower willingness to pay, such as Africa, profitable, when we go there,” he said.

What’s key to micromobility becoming more mainstream in Africa is infrastructure, Adesina said.

“I think the biggest issue [in Kigali] is that the roads are quite narrow, so how do you share the road so you don’t have a lot of hit and runs,” he said.

On the other hand, micromobility is thriving so much in Europe because of the infrastructure, Hjelm said. So, infrastructure can really make or break the industry.

“The infrastructure is better than anywhere else,” Hjlem said. “Culturally also, we’re much more used to bikes to mopeds to vespas to scooters — to all kinds of alternatives to cars. So I think that fundamentally, Europe is the world’s most attractive market.”

Read More

Posted on

Google Assistant gets an incognito-like guest mode

Google is launching a few new privacy features today that include a refreshed Safety Center that’s now live in the U.S. and coming soon globally, as well as more prominent alerts when the company expects that your account has been tampered with.

The most interesting new feature, however, is a new Guest mode for the Google Assistant on Google-branded devices. Not to be confused with giving guests access to your Google Chromecast, for example, this new Guest mode is more akin to the incognito mode in your browser. With Guest mode on, which you invoke by saying “Hey Google, turn on guest mode,” the Assistant won’t offer personalized responses and your interactions won’t be saved to your account. It’ll stay on until you turn it off.

Typically, the Google Assistant saves all of your interactions to your account.  You can delete those manually or have Google automatically delete them after 3, 18 or 36 months. You can also prevent it from saving any audio recordings at all.

This new feature will roll out to smart speakers and displays in the coming weeks.

Talking about deleting your data, Google today also announced that you will soon be able to edit your Location History data in the Google Maps Timeline.

Also new: when you now search for “Is my Google Account secure” or use a similar query, Google will start displaying your security and privacy settings for you. That’s actually a useful step forward, given that we’ve reached a point where those settings are often hard to find.

Read More

Posted on

SpaceX awarded contract to help develop U.S. missile-tracking satellite network

SpaceX has secured a contract valued at just shy of $150 million by the U.S. Space Development Agency, a branch of the U.S. military that is tasked with building out America’s space-based defense capabilities. The contract covers creation and delivery of “space vehicles,” aka actual satellites, that will form a constellation offering global coverage of advance missile warning and tracking.

Alongside SpaceX, the SDA also granted a contract for the same capabilities valued at nearly $200 million for L3Harris. That company is a U.S-based defense contracted and tech co formed by the merger of Harris and L3 last year, combining the two legacy contractors to create one of the top 10 largest defense companies globally. It’s no surprise that L3Harris would be tapped for this work, but SpaceX’s award is definitely a new extension of the company’s business.

These satellites will apparently resemble the Starlink satellites that SpaceX has already been deploying to make up its own broadband internet constellation (although with different payloads, of course). Starlink is designed as a low-Earth orbit constellation that can achieve global coverage through volume and redundancy, providing benefits in terms of cost and coverage when compared to traditional geostationary satellites.

The U.S. has repeatedly expressed an interest in building out space-based defense resources that use small satellites, citing advantages in terms of speed of deployment, as well as responsiveness and the ability to build in redundancy that could be useful in case of attacks on any resources by potential enemy actors.

If SpaceX becomes a more frequent provider not only of launch services, but also of spacecraft including satellites, it could open up plenty of new lucrative long-term revenue opportunities, particular when it comes to defense and national security contracts.

Read More

Posted on

John McAfee arrested after DOJ indicts crypto millionaire for tax evasion

Cybersecurity entrepreneur and crypto personality John McAfee’s wild ride could be coming to an end after he was arrested in Spain today, and now faces extradition to the U.S. over charges spanning tax evasion and fraud.

The SEC accuses McAfee of being paid more than $23.1 million worth of cryptocurrency assets for promoting a number of ICO token sales without disclosing that he was being paid to do so. Furthermore the DOJ has levied a number of counts of tax evasion against McAfee, saying that he “willfully attempted to evade” payment of income taxes owed to the federal government.

In a brief announcing the arrest and unsealing of indictment documents, the DOJ also details that the charges are confined to McAfee the individual and that they did not find any connection with the “anti-virus company bearing his name.”

The DOJ’s charges against McAfee are a bit dry, but detail 10 counts against the entrepreneur. McAfee faced five counts of tax evasion, which each carry a maximum penalty of five years in prison, as well as five counts of “willful failure to file a tax return,” each carrying a maximum penalty of one year in prison.

The SEC filing is a much more interesting read, with 55 pages detailing a lengthy investigation into McAfee’s alleged fraudulent activity promoting a number of ICOs throughout 2017 and 2018. The report specifically notes that McAfee allegedly received more than $11.6 million worth of BTC and ETH tokens for promoting seven ICOs. Unfortunately, those offerings were not named in the suit. He additionally received $11.5 million worth of the promoted tokens, the suit alleges.

We have reached out to John McAfee for comment.

Read More

Posted on

Daily Crunch: Venmo launches a credit card

Venmo’s first credit card is here, a former Amazon employee is arrested for fraud and we review the Nest Audio smart speaker. This is your Daily Crunch for October 5, 2020.

The big story: Venmo launches a credit card

PayPal -owned mobile payment app Venmo already offers a Mastercard-branded debit card, and it announced a year ago that it was planning to launch its first credit card as well. Today, it made good on that promise.

The Venmo Credit Card is a Visa card that offers personalized rewards and 3% cash back on eligible purchases. The cards come in five colors and include the user’s own Venmo QR code on the front.

Naturally, it also integrates with Venmo, allowing customers to track their spending and make payments from the mobile app. The card is currently available to select Venmo users, with plans to launch for the rest of the U.S. in the coming months.

The tech giants

Feds arrest former Amazon employee after company reported him to FBI for fraud — The company says it reported Vu Anh Nguyen to the Federal Bureau of Investigation in July 2020 over allegations of falsely issuing refunds for products ordered on Amazon .com to himself and his associates.

Nest Audio review — Brian Heater says it’s a welcome update to the Google Home.

Instagram expands shopping on IGTV, plans test of shopping on Reels — The product lets you watch a video, then purchase the featured product with a few taps.

Startups, funding and venture capital

Ola fails to get ride-hailing license renewed in London, says it will appeal and continues to operate — The India-based ride-hailing startup is not getting its Transport for London ride-hailing license renewed after failing to meet public safety requirements around licensing for drivers and vehicles.

Cooler Screens raises $80M to bring interactive screens into cooler aisles — Cooler Screens is led by co-founder and CEO Arsen Avakian, who previously was founder and CEO of Argo Tea.

GrubMarket raises $60M as food delivery stays center stage — The startup provides a platform for consumers to order produce and other food and home items for delivery, as well as a service supplying grocery stores, meal-kit companies and other food tech startups with products for resale.

Advice and analysis from Extra Crunch

Accel VCs Sonali De Rycker and Andrew Braccia say European deal pace is ‘incredibly active’ — De Rycker’s comments point to a future where there is no single center of startup gravity.

Two Kindred Capital partners discuss the firm’s focus and equitable venture model — The London-based VC, which backs early-stage founders in Europe and Israel, recently closed its second seed fund at £81 million.

(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Camera that will film a spacewalk in VR delivered to the International Space Station — The camera will be used to film a spacewalk in immersive, cinematic VR for the first time ever on an upcoming ISS astronaut mission.

Original Content podcast: Netflix’s ‘Away’ deftly balances space exploration and human drama — I worried that the show might be a bit too weepy and melodramatic, but I was wrong.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

Read More