The FBI pulled off an undercover crypto job

Top News

• The FBI’s crypto investigation: In a bold move, the FBI created its own Ethereum-based cryptocurrency, NexFundAI, to investigate price manipulation in crypto markets. This undercover operation led to charges against multiple individuals and companies by the SEC and DOJ for alleged fraud, including wash trading and making false claims to inflate token prices. The investigation resulted in the recovery of $25 million in fraudulent proceeds, which will be returned to investors.

• Fidelity’s data breach: Fidelity Investments has confirmed that over 77,000 customers had personal information compromised in an August data breach, including Social Security numbers and driver's licenses. The breach occurred when an unnamed third party accessed information using two newly established customer accounts between August 17 and 19. While Fidelity assures that customer accounts and funds remain secure, the incident has raised concerns given the company's vast customer base of over 51 million investors and $14.1 trillion in assets as of June 2024.

• Suki raises $70 million: Suki, a healthcare AI startup, has raised $70 million in a Series D funding round led by Hedosophia, bringing its total funding to $165 million and reportedly valuing the company at around $500 million. Founded by former Google and Flipkart exec Punit Soni, Suki develops AI voice assistants like Suki Assistant to lighten the administrative load for healthcare providers. With this new investment, they're set to accelerate product development and expand features, positioning themselves against competitors like Microsoft-owned Nuance and other startups like Abridge.

How About Some Science?

The TWiST500 is coming along very nicely, with steady additions to the list happening each week. There are almost 30 categories to date but I want to make sure the list is as well rounded as we can make it. If you follow our TWiST newsletter on Substack, then you might already know about my background in the natural sciences, and I see the list is a little light on this category.

But it doesn’t have to be that way! It’s such a rich field with plenty of startups hungry to succeed. Look at Atomwise, for example. They’re applying artificial intelligence to drug discovery and accelerating the process of finding new therapeutics (fun fact: one of the cofounders also went to my alma mater). And there’s also Pivot Bio, which develops microbial solutions that naturally produce nitrogen for crops and reduce the need for chemical fertilizers.

And there’s so much more to explore! We want to ensure we’re not missing anything, so I’ll be taking a deep dive into startups like this before we add anything to the list. If you know of any exciting startups with applications to science, send them my way at [email protected]. — Erika

A message from LinkedIn Jobs

A business is only as strong as its people, and every hire matters. Go to https://www.linkedin.com/twist to post your first job for free. Terms and conditions apply.

This Week in Startups

Startup Finance Basics: Scott Orn, Kruze COO, and Jason go through the distinct characteristics of the current AI boom, emphasizing differences in revenue, costs, and growth rates between AI startups and traditional SaaS. They highlight how AI tools are improving productivity and labor efficiency, while also noting the unique accounting and operational challenges AI startups face.

E2023: M.G. Siegler joins Jason and Alex to discuss his transition from journalism to venture capital, comparing the two fields and sharing insights on media transparency. He dives into the current state of venture capital, focusing on challenges like high valuations, market downturns, and opportunities for early-stage returns. They cover tech industry dynamics, including AI competition among tech giants, regulatory impacts on mergers and acquisitions, and the implications of the DOJ’s antitrust case against Google.

E2022: Richard Humphrey of Radian Aerospace dives into his aviation journey and the evolution of spaceplanes, including the tech behind the Radian 1 and its rocket sled launch mechanism. He and Alex explore the pros and cons of spaceplanes versus rockets, touching on funding hurdles and the growing venture capital interest in space. They also chat about Radian 1’s progress, its reusability, and the commercial potential of horizontal launches, plus the broader space economy’s future.

TWiST Partner Offers

• Gusto: Gusto is easy online payroll, benefits, and HR built for modern small businesses. Get three months free when you run your first payroll at https://www.gusto.com/twist

• Oracle: Oracle Cloud Infrastructure, or OCI, is a single platform for your infrastructure, database, application development, and AI needs. Save up to 50% on your cloud bill at ⁠https://w⁠⁠⁠⁠ww.oracle.com/twist

• Linear: Linear helps product teams focus on what they do best: Planning and building great products. Streamline issues, projects, and product roadmaps in a tool your team will actually enjoy using. Get 25% off at https://www.linear.app/twist

Founder University

Applications are open for Founder University Cohort 9, a 12-week remote pre-accelerator program tailored towards navigating early-startup practices, building an MVP, and growing traction. Submit your application at Founder University — Cohort 9 begins on October 25th!

The TWiST500 newsletter is the new, updated, and improved TWiST Ticker.