Issue #58

Citigroup accidentally sends customer $81tn, meme coins not protected by federal law, Prada to acquire Versace, and more.

News from February 27 - March 6, 2025

Bodyguard App Goes Viral 

The Protector app, allowing users to hire bodyguards similarly to rideshare services, has achieved viral status through a "rage bait" marketing campaign on TikTok. Reaching number 3 on Apple's app charts with 97,000 downloads in its first week, the service lets customers book armed ex-police officers starting at $1,000 per session plus a $129 annual membership fee, with options to select uniform styles.

Launched in New York City and Los Angeles with backing from angel investors including Balaji Srinivasan, Protector has ambitious expansion plans. These include a companion app called Patrol that would enable communities to crowdfund neighborhood security initiatives featuring technologies like robots and drones.

Source

UK’s Energy Grid Too Small for Green Power

Renewable energy providers are switching off their wind and solar tech because there isn’t enough space to store the energy they produce. 

Nearly 10% of the UK’s wind production was shut down in 2024 due to insufficient energy grid capacity and storage space, with producers preferring to stop production altogether rather than lose money. 

Many countries don’t have enough cables connecting high-demand areas like cities with wind and solar farms or battery storage facilities to preserve surplus energy in times of low demand. This leads to volatile energy prices, either excessively expensive or free electricity, as happened in Spain and Norway last year. 

Source

Tycoon’s Son Successfully Topples Father

Property tycoon Leng Beng, the 84-year-old billionaire chairman of Singapore's biggest listed property developer, accused his son of orchestrating a coup within the company.

After annual profits plunged 37%, Leng Beng fired his son Sherman Kwek for mismanagement. Sherman prevented this decision by taking control of the board, prompting his father to file a lawsuit against him. Leng Beng, father and chairman: "Firing my son was not an easy decision... but circumventing corporate governance law is a red line."

Since becoming CEO in January 2018, 48-year-old Sherman presided over a 60% decrease in CDL shares. His failed expansion into China during a property slump resulted in a $1.9 billion loss. Leng Beng described these losses as "staggering" and noted that the company's share price had declined significantly since he stepped down as CEO.

‍Source

Bulletin Board

• Citigroup Accidentally Sends Customer $81tn. Citigroup accidentally added $81 trillion to a customer's account in April last year instead of the intended $280. The error was discovered after 90 minutes and corrected within hours. During this brief period, the customer would have technically been the richest person on the planet. This mistake is part of a pattern of "near misses" at Citigroup in recent years, though the bank hasn't specified exactly how many similar errors have occurred. After reversing the transaction, the incident was reported to authorities. Source

• Central Banks Use Instagram. Central banks are expanding their social media presence to rebuild trust, particularly with younger generations. About 100 central banks now have Instagram accounts, up by over a third in two years. Their approaches range from educational content about currencies to more relatable content featuring younger staff explaining policies. Despite these efforts, their followings remain modest compared to influencers—the Fed has 200,000 followers versus Cristiano Ronaldo's 649 million. Many institutions are embracing memes, cultural references, and peer-to-peer communication to make monetary policy more accessible. Source

• Meme Coins Not Protected by Federal Law. The Securities and Exchange Commission (SEC) has declared that meme coins cannot be classified as securities under US federal law, making them easier but riskier to trade. Newly appointed chairman Mark Uyeda compared meme coins to collectibles rather than yield-generating securities, reversing previous requirements for holders to register with the SEC. This policy shift means meme coin holders no longer need to register with the federal agency, but they also cannot rely on the SEC for legal protection if problems arise. Source

• Prada to Acquire Versace. Prada is seeking to purchase Versace from US investor Capri Holdings for approximately £1.2 billion, which would return the iconic fashion brand to Italian ownership after six years. Since acquiring Versace in 2018, Capri has struggled with falling sales, debt issues, and an unsuccessful takeover attempt. Prada appears committed to the acquisition, having already completed due diligence on Capri and gained access to their financial and sales data. Prada's shares increased by 3.55% following the news. If successful, the deal would strengthen Prada's position to compete with French luxury conglomerate LVMH, which owns brands like Louis Vuitton and Hennessy. Source

• China and Canada Impose Tariffs on the US. China and Canada have announced retaliatory tariffs on US goods in response to President Trump's recent tariff impositions. China will implement additional tariffs of up to 15% on agricultural products and restrict exports to 15 US companies. This move will significantly impact US farmers, who rely on China for 20% of their exports. Meanwhile, Canada has declared its 25% tariffs on US goods will remain in place until Trump withdraws the tariffs he imposed on Canadian products. These countermeasures represent an escalating trade conflict between the US and its major trading partners. Source

Disclaimer: This blog offers insights into international business and global events for informational purposes only. It is not intended as investment or business advice. WeavePay is not liable for any decisions made based on the content provided.

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