Hello there! If you were disappointed to see basketball star Caitlin Clark's modest WNBA salary, take comfort knowing she just inked an eight-figure endorsement deal with Nike.
TikTok's time in the US could soon be on the clock.
The much-discussed ban of the popular app took a big step this weekend. The US House of Representatives passed a bill forcing TikTok's Chinese owner ByteDance to sell the company or face a ban.
That leaves the Senate to approve it today, which it likely will, followed by President Joe Biden signing the bill into law. When it's all said and done, a TikTok ban could be in place before the week's end.
Sort of.
Business Insider's Peter Kafka explains why the TikTok ban, while more imminent than ever, still has a long way to go.
ByteDance will undoubtedly put up a legal fight over the law, and will also have a year to find a suitor before getting the boot.
But you're also talking about closing a large deal at a time when interest rates show no signs of slowing down, and M&A has been largely nonexistent.
Oh, and did I mention the seller would be doing the entire process under protest? And their country of origin is in the midst of a brutal trade war with the US?
So yes, what could go wrong?
TikTok; BI
In the meantime, TikTok keeps scrolling along.
An internal memo sent Saturday from Michael Beckerman, TikTok's head of public policy in the Americas, assured workers it would fight the bill, deeming it "the beginning, not the end."
The ban isn't the only concern for the app. Some Gen Zers feel TikTok has already committed the cardinal sin of internet apps: selling out. At a time when people struggle to get by, TikTok is inundating users with creators hawking products, writes BI's Lindsay Dodgson.
Building out its e-commerce business will likely remain a key focus as it looks to reach profitability. Despite about $20 billion in revenue last year, TikTok is still in its cash-burn era, according to The Information.
YouTube Shorts, too, stand to grab more attention after a TikTok ban.
But the demise of a rival might be a short-term benefit. The government successfully shutting down a popular app is not the precedent Big Tech wants to set.
3 things in markets
Merrill Lynch, Tyler Le/BI
How a $3.3 trillion wealth unit is forging ahead after its leader's surprise exit. Andy Sieg's departure from Merrill last year was a shock. But Lindsay Hans and Eric Schimpf, the group's new co-heads, are already putting their stamp on the business by amping up recruitment and unwinding unpopular pay schemes.
The New York Stock Exchange might become the trading venue that never sleeps. TheNYSE is reportedly considering remaining open 24 hours a day. It's not the only venue pushing for 24/7 trading, as a startup backed by Steve Cohen's VC firm wants to be the world's first 24-hour stock exchange.
In China, all that glitters is gold. People in China are snapping up gold, amid signs that the world's second-largest economy is faltering. The country's central bank is also getting in on the act, having upped its holdings of the precious metal for 17 months in a row.
3 things in tech
Chelsea Jia Feng/Bi; Grzegorz Wajda/SOPA Images/LightRocket via Getty Images
How Mark Zuckerberg prepared for a GenAI wave he didn't even see coming. When he started amassing GPUs in 2022, it wasn't for generative AI. Instead, he was hoping they would help with his metaverse ambitions. GenAI wasn't on his mind — but he still did what he could to be ready for the unexpected.
No pitch deck required. Nikhil Teja Kolli's startup MokSa.ai uses AI-enabled security cameras to curb theft and fraud. In March, it closed a $1.5 million funding round — without even having to show prospective investors a pitch deck.
The real-estate revolution is coming. Thanks to a series of multibillion-dollar class-action lawsuits, the real-estate industry is in the throes of its biggest upheaval in half a century. Homebuying will get more confusing — but there are some new ways for buyers to come out on top.
From Amazon to Walmart, here's how much you can make working for big retailers. BI tracked SEC filings to work out the median wage for workers at 19 big-name brands. Spoiler alert: Costco, Amazon, and Nordstrom came out on top.
New England Patriots owner and Columbia donor Robert Kraft is pulling his support for the university.
Columbia is being divided by protests over Israel's war in Gaza.
Kraft stated he is "no longer confident that Columbia can protect its students and staff."
Robert Kraft, the billionaire owner of the New England Patriots and a Columbia University alumnus, has pulled his support for the university, which has been racked by unrest and protests over Israel's war in Gaza.
"I am not comfortable supporting the university until corrective action is taken," said Kraft, for whom Columbia's Kraft Center For Jewish Life is named.
Students and faculty have been arrested at the school after occupying the campus to protest the Israel-Gaza conflict. Demonstrators have called on the school to divest its investments from Israeli businesses and institutions affiliated with the war, which has killed thousands of civilians.
Jewish leaders on campus, meanwhile, have alleged that protesters have shouted offensive rhetoric at Jewish students, with one rabbi recommending students stay off campus.
Tyrone White was a member of the 65 Menlo Gangster faction of the Crips gang in South Central Los Angeles during the late '80s and '90s, witnessing police brutality and the LA riots. White speaks with Business Insider about the culture of the Crips and the rivalry with the Bloods. He talks about money-making activities, clothing, and music.
Andy "Rebirth" Pellerano is a former soldier for the Almighty Latin King Nation, or Latin Kings. Pellerano discusses gang life in New Orleans, where the gang spread from its home base in Chicago. He discusses drug-trafficking networks, robbery, and extortion. Today, Pellerano is an evangelical minister and musician.
Alex Sanchez is a former high-ranking member of MS-13. He became involved in the gang in the 1980s in Los Angeles and participated in its expansion. He speaks with BI about tattooing, rules and codes, media perception, and the political language used to depict the gang.
Omar Sharif was involved in gang activity in London. He speaks with BI about county lines, gang colors, and language. Sharif is now a motivational speaker, life coach, and youth worker. He has also worked with large corporations and leaders.
John Pennisi was an associate with the Gambino family through John Gotti Jr. before he became a made member of the Lucchese crime family in 2013. Pennisi says he decided to leave the mob in 2018 after members of his crew falsely accused him of cooperating with law enforcement.
Jay Dobyns is a retired ATF agent who went undercover with the Hells Angels from 2001 to 2003 as part of Operation Black Biscuit. He speaks with BI about his experience with the outlaw motorcycle gang, from weapons to narcotics trafficking. He later served as an instructor at the ATF's National Academy. Dobyns is the recipient of the United States attorney general's Medal of Valor, 12 ATF special-act awards, and the National Association of Police Organizations' top-cops award.
Jimmy Tsui is a former member of Tung On in New York City's Chinatown. He later transitioned into the Sun Yee On triad in Hong Kong, where he became a "426 general" in 1988. He speaks with BI about how the triads make money, such as extortion and protection rackets. He discusses the initiation ceremonies and rules of membership as well as the ties to the movie business.
Mike Moy says he was a gang member in New York City's Chinatown, having been recruited in the 1970s. He speaks with BI about gambling houses, counterfeit money, bootleg kung fu movies, gunrunning, and credit-card fraud. Moy joined the New York City Police Department as an officer in 1995 and worked there for 26 years. He later founded the YouTube channel Chinatown Gang Stories, where he speaks with former gang members about their lives.
Yuyama Shinya is a former member of the yakuza in Japan. He speaks with BI about the ways the yakuza makes money, such as extortion and protection rackets. He discusses the initiation ceremonies and rules of membership as well as the ties the yakuza has to other criminal groups, such as the triads and Russian organized crime. He now runs a YouTube channel.
The world's fourth-richest person rarely shies away from face-offs with other prominent figures but, increasingly, he appears to be drawing the ire of national governments too.
That's largely due to his ownership of Twitter, which thrust him into a new sphere of global politics.
In the past year, he's been engaged in several public fights with government representatives over issues including free speech, Starlink sales, and X's content moderation.
Australian demands
Musk has been criticized by the Australian government for ignoring demands to take down certain posts.
Videos and posts commenting on the stabbing of Sydney-based bishop Mar Mari Emmanuel have been circulating on X, which the Australian government seemingly wanted taken down.
X's global government affairs account claimed to have received a "demand" from Australia's eSafety commissioner to withhold certain posts or face a "daily fine of $785,000 AUD."
Musk said on Friday: "The Australian censorship commissar is demanding global content bans."
Tanya Plibersek, the Australia's environment minister, hit out at the X owner, calling him an "egotistical billionaire."
Australia's Federal Court has now ordered X to hide posts with videos of the stabbing incident, Reuters reported.
Musk said on X the content had been "censored" for Australia, "pending legal appeal, and it is stored only on servers in the USA."
He added: "Our concern is that if ANY country is allowed to censor content for ALL countries, which is what the Australian 'eSafety Commissar' is demanding, then what is to stop any country from controlling the entire Internet?
Last October Australia's eSafety Commission fined X almost $400,000 for not fully outlining its methods for dealing with child sexual exploitation content, outlets including BBC News reported.
Brazilian backlash
Musk has been clashing with a judge on Brazil's supreme court, Justice Alexandre de Moraes.
The issues began after de Moraes asked Musk to block certain X accounts in Brazil the country amid an investigation into "digital militias" that he alleged were spreading fake news and threats against Brazil's supreme court.
Musk said X would not comply with the request, and later alleged de Moraes was betraying the Brazilian constitution, claiming he should resign or be impeached.
De Moraes has since opened a separate investigation into Musk.
Starlink, Russia, and Ukraine
Musk's SpaceX has been dealing with an ongoing saga over Russia's supposed use of Starlink terminals during the war with Ukraine.
Last year, a top adviser to Ukrainian President Volodymyr Zelenskyy criticized the SpaceX founder over a report Musk had ordered his engineers to block Starlink satellites over Crimea.
Volodymyr Zelenskyy.
Getty Images
Musk has denied the claim and repeatedly denied selling Starlink terminals to Russia.
Several Ukrainian MPs also criticized the billionaire after he posted a meme taunting Zelenskyy's calls for more aid.
Ireland and hate speech
In Ireland, Musk has pledged to fund legal challenges that oppose the country's upcoming hate speech legislation.
He told the Irish outlet Gript that X would "make sure that if there is an attempt to suppress the voice of the Irish people that we do our absolute best to defend the people of Ireland and their ability to speak their mind."
Musk was referring to Ireland's forthcoming Criminal Justice (Incitement to Violence or Hatred and Hate Offences) Bill, which other public figures, including Donald Trump Jr, have criticized.
X's European headquarters is in Dublin.
Representatives for Musk did not immediately respond to a request for comment from Business Insider, made outside normal working hours.
The bond market's famous recession gauge has been flashing for 18 months.
A downturn could be delayed for months after the yield curve first inverts, Paul Dietrich said.
He predicted a recession would hit the economy "sometime soon."
A famously accurate recession indicator has been flashing for 18 months without an economic slowdown materializing — but the inverted yield curve is still correct, and a downturn is looming, B. Riley Wealth's chief investment strategist Paul Dietrich says.
Dietrich pointed to the inverted Treasury yield curve, a highly accurate recession gauge that flashes when the yield on the 2-year US Treasury surpasses the 10-year Treasury.
An inversion on the 2-10 Treasury spread has correctly predicted every recession since 1955 — and it's been flashing its infamous warning since November 2022, around the time B. Riley's collection of leading economic indicators also began to signal a coming recession.
The resilience of the US economy has stunned observers, but while some economists have dialed back their warnings of a coming downturn, one is still coming, Dietrich said in a note to clients last week. In the past, recessions have taken up to 28 months to officially start after being signaled by the yield curve and leading economic indicators, he noted.
Stocks also look due for a correction. The US is in the midst of a 15-year secular bull market, the longest in US financial history.
Forecasters have likely been taking their recession calls off the table out of impatience, Dietrich said, though he anticipated recession calls to come back into the picture within the next six months.
"I think wise investors should be very skeptical of those who tell you we are starting a new bull market and that we will not have a recession. They want you to believe that the natural business cycles of bull markets followed by a recession have been magically suspended and 'this time is different.' It is not different!" Dietrich said. "I don't know the exact date of the next recession, but I know it will come sometime soon."
Ukrainian forces firing at a Russian position with a 155 mm self-propelled howitzer 2C22, in Kharkiv, Ukraine, on April 21, 2024.
ANATOLII STEPANOV/AFP via Getty Images
Global military spending in 2023 rose to the highest levels ever recorded, analysts said.
The Stockholm International Peace Research Institute said the spike was the steepest rise since 2009.
Europe, the Middle East, Asia, and Oceania saw particularly large increases, it said.
Global military spending surged by 6.8% in real terms in 2023 to reach $2443 billion — the highest level ever recorded, according to the Stockholm International Peace Research Institute.
SIPRI released its annual report on trends in world military expenditure on Monday, describing last year's spike as the "steepest year-on-year increase" since 2009.
And the trend is truly global.
All five of the institute's defined geographical regions saw rises in military spending for the first time since 2009, with Europe, the Middle East, Asia, and Oceania recording particularly large increases, it said.
Global conflicts have been on the rise since around 2012, according to the International Crisis Group, with fighting simmering, breaking out, or expanding in Ukraine, Gaza, Ethiopia, and Myanmar over the past few years — to name just a few.
This, in turn, has ramped up military spending.
Nan Tian, a senior researcher with SIPRI's Military Expenditure and Arms Production Program, said the "unprecedented" rise in defense spending came in direct response to the "global deterioration in peace and security."
"States are prioritizing military strength but they risk an action–reaction spiral in the increasingly volatile geopolitical and security landscape," he said.
In fact, military expenditure has grown so much that global expenses per person reached $306 in 2023, SIPRI reported.
Ukrainian soldiers firing artillery near Bakhmut in Donetsk Oblast, Ukraine, on November 3, 2023.
Diego Herrera Carcedo/Anadolu via Getty Images
The institute cited Russia's military spending, which it says climbed by 24% to reach an estimated $109 billion in 2023. It also highlighted Ukraine, which ranked eighth in terms of overall defense spending, following a 51% year-on-year increase.
Lorenzo Scarazzato, a SIPRI researcher, said that two years of Russia's war in Ukraine had fundamentally altered the security outlook for European NATO states.
He added that the NATO target of 2 percent of GDP being spent on defense is now being seen "as a baseline rather than a threshold to reach."
Eleven out of 31 NATO members fulfilled or exceeded the threshold in 2023, the highest number since the agreement was struck in 2014, per SIPRI.
The US, meanwhile, held onto its position as the world's largest defense spender, with its military spending rising by 2.3% to reach $916 billion in 2023, per the institute.
This is far more than China, the world's second-largest military spender, it said, which spent an estimated $296 billion on defense in 2023, up 6%.
At the same time, Israel saw its defense spending rise by 24% to reach $27.5 billion in 2023, mostly due to its large-scale offensive in Gaza, SIPRI's report found.
An aircraft in reclamation at the Pinal Air Park in Marana, Arizona.
Taylor Rains/Insider
Pinal Air Park in Arizona is one of the largest aircraft storage facilities in the world.
The multi-million business boomed during the pandemic as airlines worldwide grounded hundreds of jets.
The airpark is also a hub for maintenance, as well as re-configuring jets when they get a new operator.
As the aviation industry hopes to reduce its carbon footprint, companies are coming up with new strategies to alleviate CO2 emissions.
Mateusz Atroszko/Getty
in April, the Aviation Circularity Consortium, including Australian flag carrier Qantas and other groups, was created as a "joint mission to accelerate supply chain decarbonisation."
A Qantas plane.
James D. Morgan/Getty Images
The plan is to use the 8,000 "end-of-life retired aircraft" that are sitting in deserts, jungles, and storage yards across the globe. Another 11,000 are expected to be available over the next 10 years.
An aircraft at the Pinal Air Park in Arizona.
Taylor Rains/Business Insider
According to the consortium, the thousands of decommissioned aircraft offer "a new source of valuable circular materials" and address the "significant waste pollution challenges to the shrinking legal boneyards around the world."
Christian Petersen/Getty
These "graveyards" started filling up during the pandemic when airlines had to make drastic cost-cutting changes, including furloughing pilots, cutting routes, and indefinitely storing hundreds of planes in the desert.
Sergio Perez/Reuters
One of these facilities is Pinal Air Park in Marana, Arizona — a small town located about 90 miles southeast of Phoenix.
The dry clime is favorable for preventing corrosion.
Christian Petersen/Getty
As airlines started to shrink in 2020, hundreds of planes from all over the world flew to the 2,080-acre airpark.
Pinal Airpark in Marana, Arizona.
Ramon Purcell/Boneyard Safari
With the influx, Pinal had to take special precautions to ensure the aircraft was ready to fly once travel eventually rebounded.
Pinal Airpark in Marana, Arizona.
Taylor Rains/Insider
Because of this, Ascent Aviation Services — the largest aircraft service provider on the airfield — had to beef up its staff to maintain the constant arrivals.
A maintenance hangar at Pinal Airpark in Arizona.
Thomas Pallini/Insider
Company CCO Scott Butler told Business Insider last year that starting in March 2020, planes were coming in at about one per hour — requiring over 150 extra mechanics.
Pinal Airpark in Marana, Arizona.
Thomas Pallini/Insider
Additional parking lots were built to handle the hundreds of planes, which continued to be filled into 2021 and 2022 with jets coming from places like the US, South Korea, UK, Australia, and Canada.
An aircraft in reclamation Pinal Airpark in Marana, Arizona.
Leasing companies were also filling the airfield after buying up inexpensive planes sold during COVID and storing them at Pinal.
Lessors did not have much business in maintenance prior to the pandemic as they typically left that task to the operator. But, Butler explained the companies started being more hands-on with AAS because the jets had to get upkeep during storage.
However, with travel now roaring back and demand on track to surpass 2019 levels, AAS has gotten back to its roots — maintenance, repair, and overhaul (MRO).
Before the pandemic, MRO services made up over 70% of the company's revenue.
Thomas Pallini/Insider
Basic offerings include simple maintenance checks and on-demand repairs, like fixing the landing gear or inspecting the flight controls.
AAS has its own landing gear shop to repair and overhaul parts to reuse on other planes.
Taylor Rains/Insider
However, heavy maintenance is the most costly for airlines. This involves a full assessment of the aircraft and can take up to 60 days for widebody jets, Butler explained.
For example, less invasive maintenance checks ("A") will inspect the engines and their fan blades. Heavy maintenance checks ("C" and "D") will actually remove those components for inspections.
Taylor Rains/Insider
"A narrowbody will cost around $2 million," he told BI in May 2023. "With widebodies, you're easily looking at $3 million."
A view of the wires and systems inside an aircraft a Pinal Airpark.
Thomas Pallini/Insider
These projects take a lot of manpower. Butler said the company targets 400-500 hours per day for widebodies and 300 per day for narrowbodies.
There could be anywhere from 25 to 40 people working on an aircraft at once.
Thomas Pallini/Insider
Because the checks are so expensive, many carriers opt to sell the aircraft when it gets to that stage in its lifecycle, which is typically every six to 10 years.
A narrowbody jetliner at Pinal Airpark in Arizona.
Or, the operator will allow an aircraft lease to expire. This means if the lessor finds a new home for the plane, it will need to be fitted for its next contract.
For example, Alaska recently announced it would break the lease of its last A321neos and expects to hand them off by the end of Q2 2023. If and when this happens, the new owner will need the re-paint and likely retrofit the cabin.
Thomas Pallini/Insider
For these conversions, AAS offers additional services, like re-painting liveries, switching out flight systems, and installing new cabins.
An aircraft going through AAS' re-painting process at Pinal Airport in Arizona.
Taylor Rains/Insider
Sometimes, aircraft will transition from a passenger jet to a cargo plane — a service the company saw increased popularity during the pandemic, especially with older jets.
Amazon has tapped Hawaiian Airlines to fly A330-300P2F (pictured) converted jets for its lucrative air cargo business.
For flight tests and deliveries, the operator will arrange pilots, who will land and depart on the designated runway stretching Pinal's airfield.
The runway at Pinal Air Park.
Ramon Purcell/Boneyard Safari
Overall, Butler said AAS can do nearly anything an airline would need from an MRO standpoint.
An employee working inside a conversion aircraft at Pinal Airpark.
Taylor Rains/Insider
The main service it can't provide is engine overhauls, which are outsourced to other shops.
The engine detached from an aircraft at Pinal Airpark in Arizona.
Taylor Rains/Insider
"A lot of our current projects are just waiting on engines," Butler told BI. "There's a backlog because no one did engine maintenance during COVID because of the expenses."
A covered engine inside a hangar at Pinal Airpark.
Taylor Rains/Insider
He explained this is adding to the already strained supply chain that has caused a slowdown in returning aircraft to service.
An aircraft being overhauled at Pinal Airpark.
Taylor Rains/Insider
While AAS does a lot of work keeping airplanes flying, it also offers aircraft reclamation and end-of-life services — what the consortium wants to capitalize on.
An aircraft in reclamation.
Taylor Rains/Insider
This involves disassembling and disposing of unwanted parts, which make up about 10% of the airplane.
Ascent Aviation Services breaking down aircraft.
Ascent Aviation Services
According to Butler, the other 90% is recyclable. These include things like engines and galley carts…
An aircraft in reclamation.
Taylor Rains/Insider
…and avionics and landing gear.
Pinal Airpark in Marana, Arizona.
Thomas Pallini/Insider
However, he said custom interiors do not have much value except to the original operator.
The interior of an aircraft in reclamation.
Thomas Pallini/Insider
A plane can spend months being salvaged, with hundreds of collected parts being resold or repaired for future use.
An aircraft in reclamation.
Ascent Aviation Services
The re-certified pieces can be sent back to airlines who keep them in their inventory as spare parts — meaning retired jets can still provide for current ones.
Two aircraft in reclamation with their landing gear already salvaged.
Meanwhile, some carriers will take parts of the metal to create memorabilia, like cutting the logo or airline name from the fuselage and using it as wall art.
An AAS spokesperson told Insider this was the logo of a company that an individual wanted as a keepsake.
Taylor Rains/Insider
In addition to the strong MRO and reclamation divisions, storage and parking is still a strong revenue source for AAS.
Aircraft in storage.
Taylor Rains/Insider
"80% of all the stored aircraft worldwide are stored in the Southwest," Butler told BI in 2021.
One of the 747SPs at Pinal Airpark in Arizona.
Taylor Rains/Insider
During an April 2023 tour of the airpark, BI found the main lot full of planes, including two rare Boeing 747SPs.
One of the Boeing 747SPs at Pinal Airpark.
Taylor Rains/Insider
Mechanics spend up to two weeks getting a plane ready for storage. Important components like the engines, pitot tubes, systems, and landing gear are sealed and protected.
An aircraft with its external systems covered.
Taylor Rains/Insider
This is especially important to prevent critters and other wildlife from taking up residence in the airplane's openings and small crevices.
Pinal Airpark in Marana, Arizona.
Thomas Pallini/Insider
Butler told BI the stored aircraft also get regular maintenance checks to keep them airworthy.
A Boeing 777 undergoing maintenance.
Taylor Rains/Insider
Parked planes, on the other hand, do not get this service and can be left to collect dust — giving Pinal its "boneyard" nickname.
An old Boeing 747 that has been sitting at the airpark for years.
The measures are being taken to prevent what the US sees as China's support for Russia's invasion of Ukraine, the outlet reported, citing people familiar with the matter.
Last week, Secretary of State Antony Blinken accused China of providing Russia with crucial technology parts for its weapons industry.
"We see China sharing machine tools, semiconductors, other dual-use items that have helped Russia rebuild the defense industrial base that sanctions and export controls had done so much to degrade," he said at a press conference following the G7 foreign ministers meeting in Italy.
According to Chinese customs data, trade between the two countries reached a high of $240 billion in 2023, with China becoming one of Russia's largest goods suppliers since Western companies left the Russian market after the country's 2022 invasion of Ukraine.
A Chinese embassy spokesperson previously told Reuters that China was not a party to the war in Ukraine and that usual trade between China and Russia should not be interfered with or restricted.
Amid reports that Russia had developed ways of circumventing the sanctions, the US last year sought to punish banks and other organizations facilitating the trade.
The Journal reported that new sanctions on Chinese banks were being considered as an escalatory option in case other diplomatic attempts to curb exports from China fail.
The report comes as Blinken heads to China Tuesday, where he is likely to address US allegations that China is secretly intensifying its support for Russia's invasion.
The plan could backfire
Cutting banks off from access to the dollar would have huge implications for China, with its economy already in a precarious state after a property market debt crisis.
In response to previous sanctions, Russia and China intensified efforts to create exchange mechanisms that don't rely on the dollar.
China doesn't want to get rid of the dollar entirely, but to diminish its dominance and create security for its economy if the US decides to impose even greater sanctions.
The Financial Times last August reported that economies in the "global south" that have long criticized US dominance over the financial system are increasingly keen to use currencies and exchange platforms that don't require the US currency.
Alexandra Prokopenko, a fellow at the Carnegie Russia Eurasia Center think tank, told The Wall Street Journal that regional Chinese banks had emerged that had little involvement in dollar exchanges.
"Payment chains are slowly being rebuilt," Prokopenko told the outlet. "Both Russians and Chinese are constantly adapting to the new conditions."
The US is betting that China's financial links to the US are stronger than its relationship with Russia.
"There is underused leverage by the West, especially given the dollar and euro dominance in the financial system," said Maria Snegovaya, a senior fellow at CSIS told the Journal.
A stock image shows an older man making a payment online using his credit card.
iStock/Getty Images
A 25-year-old Japanese 'sugar baby' has been sentenced to nine years in prison.
A court ruled that Mai Watanabe defrauded men she met on dating apps out of more than $1 million.
Watanabe also sold a manual on how to execute similar scams, helping another woman in her efforts.
A 25-year-old "sugar baby" was handed a nine-year prison sentence for defrauding men she met on dating apps out of more than $1 million, and selling a manual on how to carry out similar scams.
Mai Watanabe, also known as "itadaki joshi Riri-chan," which translates as "sugar baby Riri," was sentenced by the Nagoya District Court on Monday, The Japan Times reported.
The news outlet said that Watanabe was also fined 8 million yen, about $52,000.
According to the court's ruling, Watanabe defrauded three men in their 50s out of a total of around 55.8 million yen, about $1 million, between 2021 and 2023, the Nippon news agency reported.
She swindled one victim out of 117 million yen, about $756,000, by convincing him that she needed the money to pay off a debt, according to the Kyodo news agency, which added that she used a similar story to defraud the other two men.
Nippon reported that Watanabe used most of the money to make payments at male host clubs in Tokyo's Kabukichō district.
In these clubs, female customers pay for male company and are often poured drinks and flirted with by male hosts.
Kyodo, citing the court's ruling, said that Watanabe was also convicted of creating a manual on how to execute similar scams.
The Jiji Press news agency said she sold the manual to a 21-year-old woman in 2022, aiding her in swindling someone out of about 10 million yen — a little over $64,000.
The news agency said Watanabe was also convicted of evading income tax by hiding about a quarter of the scam's proceeds.
Being a sugar baby can be financially rewarding. A freelance writer previously told Business Insider that she got paid as much as $500 for dates, and was treated to designer clothes, expensive dinners, and stays in luxury hotels.
For sugar daddies — older men who pay younger women — it can sometimes offer a form of companionship, whether platonic or otherwise.
But if they're not careful, they risk falling victim to romance scams.
The Federal Trade Commission in the US received 64,003 reports of romance scams in 2023, amounting to total losses of more than $1.1 billion.
The median loss per person, at $2,000, was higher than in any other type of imposter scam, the FTC noted.
According to a 2023 report by the commission, nearly 60% of people who lost money to a romance scam that year first made contact with the scammer through social media, websites, or apps.