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Pi Network price bounced back during the weekend as investors bought the dip following the 85% crash from its peak. The token peaked at $0.7940 on Saturday, up sharply from the year-to-date low of $0.4023. Still, it remains sharply lower than the all-time high of near $3. 

Why Pi Network price crashed

There are a few reasons why the Pi Network price plunged after its highly anticipated mainnet launch in February.

First, the crash mirrored that of other recently launched tokens. For example, a token like Grass, jumped initially and then retreated and has never recovered. The same is true with other tokens like Wormhole, Hamster Kombat, and ZkSync. 

Second, the Pi Network mainnet launch coincided with a difficult period in the market when most tokens were crashing. Bitcoin has remained below $90,000, down sharply from the all-time high of $109,200. Other tokens like Berachain, Polkadot, and Solana have done worse. 

Third, the Pi Network price crashed as investors reacted to its relatively weak ecosystem. The idea behind Pi was that it would have a highly vibrant ecosystem of applications that will promote commerce, gaming, and other areas. Applications in the network have not done well since then. 

A good example of this is the recently launched Pi domains, which the developers are auctioning. Pi holders have placed 110,840 bids currently worth $1.84 million. While this is a good number, it means that only a tiny number of pioneers have placed their bid. Pi had over 10 million pioneers during its mainnet launch. 

Read more: Pi Network price prediction: is it safe to buy the Pi coin dip?

Exchange listings, pioneer sales, and dilution

There are other reasons why the Pi Network price has imploded. For one, many mainstream exchanges have refused to list it, with some, like Bybit, arguing that it was a scam. Pi’s developers have rejected these claims, and pointed to the network’s transparency. 

A Pi Network exchange listing by companies like Binance, Coinbase, and Upbit would help to push its price much higher than it is today. 

Further, there are substantial concerns about its dilution, which are caused by its token unlocks. Over 1.55 billion Pi tokens are expected to be unlocked in the next 12 months, with more billions set for the following years.

Pi can allay these fears by simply burning most of its tokens. That’s because the Pi Foundation currently holds over 73 billion tokens with a diluted value of $47 billion, meaning that it can afford to buy some of them. 

Finally, the Pi Network token crashed as many pioneers who were mining the token for years sold their allocations after the mainnet launch.

Pi Network price technical analysis

PI token price chart | Source: TradingView

The Pi coin price will likely have a sustained recovery in the next few days. That’s because its recent crash happened as it was forming a falling wedge pattern, a popular bullish reversal sign.

The two-hour chart above shows that the token formed two descending and converging trendlines. Its rebound happened when the two lines neared their confluence levels. 

Pi coin also formed a bullish divergence pattern, which happens when an asset is dropping as some of its top oscillators rise. Therefore, the token will likely keep rising as bulls target the important psychological point at $1. Such a move would point to a 72% increase from the current level. A drop below last week’s low of $0.4142 will invalidate the bullish outlook.

The post Pi Network price rally: Why Pi coin is rising after the 85% crash appeared first on Invezz

The Australian dollar crashed to a five-year low on Friday, making it the worst-performing developed world currency. The AUD/USD pair nosedived to a low of 0.5988, down by almost 14% from its highest point in 2024. This article explores why the Aussie crashed, and whether this was an overreaction.

China and US trade war

The AUD/USD exchange rate plummeted as the Chinese and US trade war escalated on Friday. In a statement, Beijing said that it would apply a 34% tariff on all imported goods from the US, a move that will make them unaffordable. This will affect goods like oil and those in the agricultural industry. 

Beijing also said that it would block some rare earth exports to the United States. It will also add more companies to entity lists, blocking their activities in China, the second-biggest economy in the world. 

China’s actions came two days after Trump continued its onslaught against China. Before that, he had applied 205 tariffs on most goods coming from the country. The US will also charge a 25% tariff on Chinese steel and aluminum.

The Australian dollar is often seen as a proxy for the Chinese economy because of the vast volume of goods that the two do. The estimate is that Australia exports goods worth over AUD 204 billion a year to China. China then exports goods worth AUD 304 billion a year. Therefore, signs of disruption of this trade partnership is often seen negatively in Australia.

Potential RBA rate cuts

The AUD/USD pair crashed as investors predicted that the ongoing tensions would lead to more RBA interest rate cuts. In the last meeting, the bank left interest rates unchanged and maintained its concerns about inflation. 

Donald Trump also applied a 10% tariff on all Austrian goods, meaning that the economic growth may be likely be impacted. However, the composition of Australia’s exports to the US means that the impact of tariffs will be limited.

The biggest Australian exports to the US are meat, precious metals, pharmaceutical products, and medical equipment. Applying a tariff on these goods will likely have no immediate impact on the economy. 

FOMC minutes and US inflation

The upcoming Federal Reserve minutes and US inflation data will be the next key catalyst for the AUD/USD exchange rate. 

These minutes, which comes out on Friday, will provide more details about the last meeting in which officials left interest rates unchanged. 

The US will then release the latest inflation report on Thursday. While analysts expect the figure to show that inflation dropped in March, there is a risk that Trump’s tariffs will be highly inflationary.

AUD/USD technical analysis 

AUD/USD chart by TradingView

The weekly chart shows that the Australian dollar has crashed in the past few months. It dropped to a low of 0.6040 last week, and is now at its lowest level in five years.

The pair has moved below the crucial support at 0.6165, its lowest level in October 2023, and the lower side of the descending triangle pattern. This is one of the most popular bearish continuation signs in the market.

The AUD/USD pair has remained below the 50-week and 100-week moving averages. Therefore, the outlook for the pair is bearish, with the next point to watch being at 0.5500, the lowest level in March 2020. A move above the resistance at 0.6166 will invalidate the bearish outlook.

The post AUD/USD forecast: what next for the Australian dollar after the crash? appeared first on Invezz

The USD/INR exchange rate was highly volatile last week as the market reflected on Donald Trump’s trade war with the rest of the world. The pair initially crashed to 84.95, its lowest level since December 23, and then bounced back to 85. This article explores what to expect this week as the Reserve Bank of India (RBI) delivers its rate decision.

Indian bond yields crash ahead of the RBI interest rate decision

The RBI will be the only central bank set to deliver its monetary policy decision this week. This will be a closely-watched decision as it comes at a time when the Indian inflation is falling and the economy is slowing. 

The most recent data showed that the headline Indian Consumer Price Index (CPI) dropped to 3.6% in February from 4.26% a month earlier. This decline was lower than the median estimate of 4%. It was also the lowest level in months. 

The RBI decision also comes as the world comes to terms with the Trump Liberation Day tariffs announced last week. India, a top US trading partner, received a 26% tariff that will affect goods worth billions of dollars. 

Therefore, most analysts believe that a combination of uncertainty and falling inflation will push the RBI to deliver a 25 basis point interest rate cut. It will be the second consecutive cuts this year after it slashed by 0.25% in February.

The rising odds of the upcoming RBI rate cut explain why investors have piled into Indian bonds, pushing their yields lower. The ten-year yield has crashed from the post-pandemic high of 7.61% to 6.46%, its lowest level since January 2022. 

Similarly, the 5-year yield has plummeted for six consecutive weeks, reaching a low of 6.30%, its lowest level since April 2022.

Analysts believe that the trade war will leave the Indan economy worse off. In this, it will likely not hit the RBI target of 6.7% and the government estimate of 6.3%. Goldman Sachs analysts see the economy growing by between 6.1% and 6.3%, while Citi sees it growing by 6.0%.

FOMC minutes, US inflation data

The USD/INR exchange rate will react to the upcoming Federal Reserve minutes that will come out on Wednesday. These minutes will provide more information about the last monetary policy meeting and what to expect later this year.

The other key data to watch will be the US inflation report that comes out on Thursday. Economists expect the headline CPI to come in at 2.5%, lower than the previous 2.8%. Core inflation is expected to come in at 3.0% from the previous 3.1%.

While these events are important, their impact on the USD/INR will be limited because the world is a significantly different place today than it was two weeks ago.

USD/INR technical analysis

USD/INR chart by TradingView

The daily chart shows that the USD to INR exchange rate has stabilized in the past few days. It has rebounded from last week’s low of 84.95 to 85.4820. 

The pair remains significantly below the 50-day and 100-day Exponential Moving Averages (EMA). It is also hovering at the 50% Fibonacci Retracement levels. 

Therefore, the USD/INR exchange rate will likely remain under pressure this week. The top levels to watch will be at 84.95 and 85.95. A drop below the support at 84.95 will point to more downside, potentially to the 61.8% retracement level at 84.68.

The post USD/INR forecast: Indian bond yields plunge ahead of RBI decision appeared first on Invezz

The S&P 500 index has crashed hard this year, erasing some of the gains made last year. The SPX crashed by 5.8% on Friday, meaning that it has crashed by over 17.5% from its highest level this year. It has dropped to its lowest level since May 2024, erasing trillions of dollars in value. 

A closer look at the S&P 500 index constituents shows that most of them tumbled last week. Only 15 companies rose by more than 1% during the week, with Lamb Weston, Molina Healthcare, Dollar General, and McKesson Corporation being the top leaders. 

S&P 500 index chart

Top S&P 500 index stocks to buy the dip

Historically, all sharp crashes of the S&P 500 index has been a good period to buy the dip. While the drop may continue for a while, there are chances that some popular blue-chip stocks will bounce back in the coming weeks. Some of the top S&P 500 stocks to buy are JPMorgan (JPM), Blackrock (BLK), Xylem (XYL), and Berkshire Hathaway (BRK).

Read more: 5 reasons the S&P 500 and the SPY ETF could dive in 2025

JPMorgan (JPM)

JPMorgan stock has crashed in the past few months, moving from the year-to-date high of $278 to $210. Like other banks, the stock has plunged as investors worry that the US may sink to a recession this year. 

The reality, however, is that JPMorgan is one of the safest banking franchises in the US, helped by Jamie Dimon’s focus on creating a fortress balance sheet. It has a CET-1 ratio of 15.7%, much higher than what US regulations require. This figure means that it can absorb a loss of $547 billion.

JPMorgan is also a good buy because of its history, where it has survived and thrived for over a century. In this, it has survived the dot com bubble, the Great Depression, the Cold War, the pandemic, and the Global Financial Crisis (GFC). 

Xylem (XYL)

Xylem is another S&P 500 stock to buy the dip in. Xylem is a top company in the water industry, where it manufactures pumps and disinfection systems that are used by households, companies, and utilities. Its top brands are Flygt, Goulds, Lowara, and Wedeco.

Xylem is an industrial company that makes most of its products in the United States, Europe, and in Asia. While some of its products will face tariffs, the company will likely weather the storm because of its strong market share and its brand awareness. 

Analysts have a bullish outlook of the Xylem stock price, with a target of $145, up from the current $104.

Berkshire Hathaway (BRK)

Warren Buffett’s Berkshire Hathaway stock price also crashed last week. Its class A shares dropped to $740,000, down from the year-to-date high of $807,220.

BRK is one of the best S&P 500 stocks to buy because of its business and its large cash balance. Buffett has sold stocks worth billions of dollars in the past few months, a sign that he predicted the ongoing bloodbath. 

This has left him with over $300 billion in cash, which he may use to buy cheap companies as he has done in the past. Like the other companies in this list, Berkshire has survived multiple economic crises in the past, a trend that will continue this year.

Blackrock (BLK)

Blackrock stock price has also crashed in the past few weeks. It tumbled to a low of $822 on Friday, the lowest level since August 12. It is down by over 23.7% from its highest level this year, meaning that it is in a deep bear market. 

Blackrock will likely suffer some outflows as some investors exit their positions. However, the reality is that the company has survived other crises in the past, and will do so this year. Analysts have a Blackrock stock target of $1,150, a big increase from the current $822.

Other top S&P 500 stocks to buy

There are other top S&P 500 index to buy and hold as most of them crashes. Notable names are companies are blue-chip companies like Abbott Laboratories, Enterprise Product Partners, and NextEra Energy.

The post Top 4 S&P 500 index stocks to buy the dip amid the crash appeared first on Invezz

Most American stocks crashed last week as concerns about Donald Trump’s tariffs caused shockwaves in the financial market. Technology stocks were among the top laggards as the tariff issue coincided with concerns about the artificial intelligence industry. 

Private equity stocks were also some of the worst performers in the S&P 500 index. This article explores why these stocks crashed, and whether it is safe to buy the dip.

Private equity stocks have crashed

Top companies in the private equity industry plunged last week as the market reacted to Donald Trump’s Liberation Day tariffs. Apollo Global Management (APO) stock price crashed by 21%, making it one of the top-ten laggards in the S&P 500 index during the week. 

KKR stock price dropped by 20.7%, while Blackstone fell by 13%. Other companies in the industry, like Carlyle, Ares Management, and Blue Owl Capital also dropped by double digits. 

Portfolio companies to be exposed to tariff risks

The first main reason why private equity stocks crashed is the Liberation Day tariffs that Trump announced on Wednesday. His tariffs include a global minimum rate of 10%, with some countries seeing rates of over 50%.

These tariffs will largely hit most companies, whether they do business in the US or not. This includes companies that these private equity companies own. 

However, the direct impact of tariffs on these private equity companies will be limited because of how they make their money. Most of these firms make most of their cash from their assets under management.

For example, Blackstone made $1.648 billion from management and advisory fees in the fourth quarter. It then made $240 million in incentive fees, making it a smaller part of its business. 

However, a recession can still expose these companies to risk, since they have become large players in the private credit industry. In private credit, these firms provide loans to companies across different sectors. The risk is where these recipients go out of business during a recession.

Difficulty in exits

The other reason why private equity stocks have crashed is that the ongoing market conditions are not ideal for exits. An exit is a situation where PE companies realize their investments. This typically happens through initial public offerings (IPOs) and sales.

PE companies now hold over 29,000 companies worth $3.6 trillion that they hope to exit, a difficult thing during a period of heightened risks. 

Their hope was that the Trump administration would usher in a period of deregulation and low inflation, which would fuel more activity, which has not happened.

Is it safe to buy private equity stocks dip?

The ongoing stock market crash has affected companies in the private equity industry. Still, there are chances that these companies will bounce back once the market moves out of the fear zone. 

One potential reason is that these companies now sit on $2.8 trillion in dry powder, a figure that refers to cash raised but not spent. It has become difficult for these companies to buy firms because of the market valuations. Therefore, these firms may use the dip to buy good companies at a lower price. In a note, one Hamilton Lane analyst said:

“History shows clearly that those are the periods when private markets, particularly private equity, outperform by the greatest amount.”

Further, these private equity companies have been in the business for decades. They have gone through worse market conditions before, including during the pandemic and the Global Financial Crisis.

The post Here’s why private equity stocks are crashing appeared first on Invezz

Meme coins continue to dominate attention in crypto, and a new entrant, PepeX, is gaining ground quickly.

Now in Stage 5 of its presale, PepeX has raised over $1,249,000, and the token price will increase from $0.0243 to $0.0255 in two days.

This rising demand stands in contrast to the Pepe token, which is down over 65% in 2025 following a peak last December.

While PEPE rode viral waves with no underlying utility, PepeX presents itself as a functional launchpad platform with anti-rug protections and a structured presale model for long-term token stability.

Price gains as presale enters new stage

PepeX is structured over 30 stages, increasing the price by 5% at each level. The presale began in late March with a token price of $0.02, and the current price sits at $0.0243 during Stage 5.

In two days, the price will move up to $0.0255 as the sale progresses into Stage 6.

If the entire presale sells out, the token will launch on public exchanges at approximately $0.085, offering early buyers a strong entry price advantage.

The current fundraising total stands at $1,249,035, reflecting growing traction as more buyers enter before the next price jump.

The presale is scheduled to run for 90 days, giving the project a fixed window to attract interest before launch.

Key differences between PepeX and Pepe

Unlike PEPE, which launched in 2023 purely as a meme coin with no functionality, PepeX is built as a launchpad for new meme tokens.

The platform plans to use artificial intelligence to vet and deploy new meme coins, allowing creators to launch tokens with features like automated liquidity locks and anti-sniper protection.

PepeX also caps developer token allocations at 5%, reserving 95% for the community.

This mechanism, combined with liquidity lock requirements, is designed to prevent token manipulation, unfair distribution, or early dumping by insiders—common issues in meme coin launches.

Pepe, in contrast, rose and fell on market hype.

It reached an all-time high of $0.00002803 in December 2024, but its current price has dropped to $0.057041, down around 75% from its peak. No platform or ecosystem was ever attached to it, making it more vulnerable to speculative swings.

What could drive PepeX in 2025

Price forecasts for PEPE remain narrow. Analysts suggest a range between $0.000006 and $0.000015 by year-end, largely driven by meme momentum and speculative sentiment.

PepeX, however, introduces utility into the meme coin space. If it attracts meme creators looking for a safe, fast way to launch tokens—and investors seeking early-stage access—demand for PEPX may increase as the platform scales.

It also borrows the presale model from previous success stories, offering pre-launch gains as the token climbs through the staged price structure.

A successful listing at $0.085 would already reflect a more than fourfold gain from the opening presale price.

Its potential also ties to the broader meme ecosystem. Platforms like Pump.fun have generated over $500 million in meme coin value.

If PepeX manages to capture a slice of that market, it may drive additional trading activity once the token goes live.

The post PepeX poised for 250% presale surge while PEPE falls 75% in market shift appeared first on Invezz

President Donald Trump marked the week by unveiling an unprecedented wave of tariffs on imports to the U.S., aligning with his long-held position that other countries have taken advantage of the U.S. in trade. 

Trump disclosed the historic tariffs in a ceremony at the White House’s Rose Garden for a ‘Make America Wealthy Again’ event, asserting these new duties would generate new jobs for U.S. workers. 

‘For nations that treat us badly, we will calculate the combined rate of all their tariffs, nonmonetary barriers and other forms of cheating,’ Trump said Wednesday.

‘And because we are being very kind, we will charge them approximately half of what they are and have been charging us,’ he said. ‘So, the tariffs will be not a full reciprocal. I could have done that. Yes. But it would have been tough for a lot of countries.’

The tariff plan establishes a baseline tax of 10% on all imports to the U.S., along with customized tariffs for countries that place higher tariffs on American goods. The baseline tariffs of 10% will take effect Saturday, while the others will take effect Wednesday. 

The Trump administration previously imposed a 25% tariff on imported vehicles, up to 25% tariffs on certain goods from Mexico and Canada and a 20% tariff on shipments from China. The tariffs already imposed on Canada and Mexico remain unaffected, but the new tariffs on China will be added on top of the previous duties on Beijing, according to the White House. 

The tariffs have faced backlash from both parties in Congress, and allies, including Canada and Australia. A bipartisan group of senators introduced legislation Friday called the Trade Review Act of 2025 that would require the executive branch to provide Congress a 48-hour notice before imposing tariffs. Likewise, the measure would permit tariffs to expire after 60 days, unless Congress moves to approve a joint resolution codifying the duties. 

Treasury Secretary Scott Bessent urged countries against imposing retaliatory tariffs against the U.S. in response. 

‘My advice to every country right now: Do not retaliate,’ Bessent said in an interview Wednesday with Fox News. ‘If you retaliate, there will be escalation.’

Here’s what also happened this week: 

National Security Council firings 

Trumpalso disclosed that several members of the National Security Council, headed by National Security Advisor Mike Waltz, were fired Thursday. Trump said the firings affected a small number of employees, and he still had a high level of confidence in his national security team. 

‘Always, we’re going to let go of people we don’t like or people we don’t think can do the job or people who may have loyalties to somebody else,’ Trump told reporters on Air Force One when asked about media reports on the firings.

The firings come amid scrutiny over Waltz’s use of a Signal group chat to discuss strikes in Yemen after a journalist was accidentally added to the group. 

Waltz created the group chat that included White House leaders like Vice President JD Vance and Secretary of Defense Pete Hegseth. The chat also included Atlantic editor-in-chief Jeffrey Goldberg.

The White House said classified information was not shared via the encrypted messaging service. However, The Atlantic published the full exchange of messages March 26. The messages included certain attack details, including specific aircraft and times of the strikes. 

Still, the White House has defended Waltz and said the White House is no longer looking into the incident. 

‘As the president has made it very clear, Mike Waltz continues to be an important part of his national security team,’ White House press secretary Karoline Leavitt told reporters Monday. ‘And this case has been closed here at the White House as far as we are concerned.’

Musk’s DOGE status 

The White House confirmed that SpaceX and Tesla CEO Elon Musk would depart his position spearheading the Department of Government Efficiency (DOGE) later this spring in response to reports from Politico that Trump was disclosing to those close to him that Musk would ‘step back’ from his role with DOGE in the forthcoming weeks. 

‘This ‘scoop’ is garbage,’ Leavitt posted on X Wednesday. ‘Elon Musk and President Trump have both *publicly* stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete.’

Musk is a ‘special government employee.’ The executive or legislative branches are permitted to take on temporary employees to address short-term projects for up to 130 days in a single 365-day period. For Musk, that period of time will expire at the end of May.

Musk and Trump have previously said they anticipate Musk will complete the work necessary for DOGE within that window of time. 

Fox News’ Emma Colton contributed to this report. 

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House Republican leaders are rallying GOP lawmakers around a plan to enact a broad swath of President Donald Trump’s agenda, after the legislation was passed by the Senate in the early hours of Saturday morning.

‘More than a year ago, the House began discussing the components of a reconciliation package that will reduce the deficit, secure our border, keep taxes low for families and job creators, reestablish American energy dominance, restore peace through strength, and make government more efficient and accountable to the American people. We are now one step closer to achieving those goals,’ Speaker Mike Johnson, R-La., and his top lieutenants wrote to House Republicans.

‘Today, the Senate passed its version of the budget resolution. Next week, the House will consider the Senate amendment.’

Congressional Republicans are pushing a conservative policy overhaul via the budget reconciliation process. Traditionally used when one party holds all three branches of government, reconciliation lowers the Senate’s threshold for passage on certain fiscal measures from 60 votes to 51.

As a result, it’s been used to pass sweeping policy changes in one or two massive pieces of legislation.

Senate Republicans passed a framework for a reconciliation bill just after 2 a.m. ET on Saturday, after hours of debate and votes on amendments to the measure.

It’s similar to the version House Republicans passed in late February; but mechanisms the Senate used to avoid factoring in the cost of extending Trump’s 2017-era tax cuts as well as a lower baseline for required federal spending cuts has some House conservatives warning they could oppose the bill.

The Senate’s version calls for at least $4 billion in spending cuts, while the House’s version mandates a floor of $1.5 trillion to $2 trillion.

Both bills also include Trump priorities on border security, energy, and new tax policies like eliminating penalties on tipped and overtime wages.

‘If the Senate’s ‘Jekyll and Hyde’ budget is put on the House floor, I will vote no,’ Rep. Chip Roy, R-Texas, wrote on X.

‘In the classic ways of Washington, the Senate’s budget presents a fantastic top-line message – that we should return spending back to the pre-COVID trajectory (modified for higher interest, Medicare, and Social Security) of $6.5 Trillion, rather than the current trajectory of over $7 Trillion – but has ZERO enforcement to achieve it, and plenty of signals it is designed purposefully NOT to achieve it.’

But House GOP leaders insist that the Senate’s passage of its framework simply allows the House to begin working on its version of the bill passed in February – and that it does not impede their process in any way.

‘The Senate amendment as passed makes NO CHANGES to the House reconciliation instructions that we voted for just weeks ago. Although the Senate chose to take a different approach on its instructions, the amended resolution in NO WAY prevents us from achieving our goals in the final reconciliation bill,’ the letter said.

‘We have and will continue to make it clear in all discussions with the Senate and the White House that—in order to secure House passage—the final reconciliation bill must include historic spending reductions while protecting essential programs.’

House GOP leaders have pointed out that passing a framework is just the first step in a long process, one that just lays out broad instructions for how money should be spent.

Now that similar frameworks have passed the House and Senate, the relevant congressional committees will work out how to achieve the final reconciliation policy goals under their given jurisdictions.

‘We have made it clear the House will NOT accept nor participate in an ‘us versus them’ process resulting in a take it or leave it proposition from the Senate,’ House leaders warned.

‘Immediately following House adoption of the budget resolution, our House and Senate committees will begin preparing together their respective titles of the reconciliation bill to be marked up in the next work period.’

The letter reiterated Johnson’s earlier goal of having a bill on Trump’s desk by the end of May.

House Budget Committee Chairman Jodey Arrington, R-Texas, called the Senate’s resolution ‘unserious and disappointing,’ noting it only mandated $4 billion in ‘enforceable cuts.’

He vowed to work with congressional leaders to find the best path forward, however.

‘I am committed to working with President Trump, House leadership, and my Senate counterparts to address these concerns and ensure the final reconciliation bill makes America safe, prosperous, and fiscally responsible again,’ Arrington said.

This post appeared first on FOX NEWS

A man from Malibu has been convicted of scamming investors and Hollywood stars out of more than $20 million through false claims about his celebrity app’s business performance.

Bernhard Eugen Fritsch, the founder and CEO of StarClub Inc., a Santa Monica-based tech company, was held accountable for an elaborate fraud that fueled his lavish lifestyle, Fox News Digital has learned.

Fritsch, 63, was found guilty by a jury on Thursday of one count of wire fraud after it was revealed that he lied to investors about the financial success and future potential of his tech company, according to the Department of Justice. 

He falsely promised that the company’s app, StarSite, would help celebrities and social media influencers monetize their brand endorsements. 

Instead of using the funds for the app’s development, Fritsch spent millions on luxury cars, yachts, and a multimillion-dollar Malibu mansion, the press release stated. 

From 2014 to 2017, Fritsch raised over $20 million, pitching StarClub as a game-changer for the entertainment industry. He claimed the app would allow celebrities to easily post branded content on social media, generate revenue from advertising and share profits with influencers.

As Fritsch pitched the StarClub offering to investors, he made several false and fraudulent claims, including that his company was on the verge of entering commercial deals with, or obtaining investments and buyout offers from major media companies such as Disney – that StarClub earned $15 million in revenue in 2015.

Instead of using the funds to expand the company or improve its technology, Fritsch purchased luxury cars like a McLaren and a Rolls-Royce, renovated his multimillion-dollar Malibu home and even made costly upgrades to his yacht.

Law enforcement seized the yacht, McLaren and the Rolls-Royce, and they are subject to forfeiture proceedings.

One victim invested more than $20 million in StarClub over the course of two years, based on Fritsch’s false statements, according to the Department of Justice. 

This victim also introduced Fritsch to other victims who invested millions of additional funds in the company. Prosecutors estimate that Fritsch caused at least approximately $25 million in victim losses because of his scheme.

Sources close to Fox News Digital have learned that Hollywood celebrities, including Enrique Iglesias and Tyrese Gibson, may be involved in this high-profile scheme. 

In 2014, singer and actor Tyrese hosted a private party for StarClub Inc. Actresses including Caitlin O’Connor, Elise Neal, rapper Trinidad James and model Khadija Neumann attended the star-studded event.

Meanwhile, Fritsch has been sued in Los Angeles County Superior Court three times over allegations of fraudulent financial schemes. 

Music executive Haqq Islam and his company sued StarClub and Fritsch in 2013, claiming breach of contract and fraud, according to The Los Angeles Times. 

Islam alleged that Fritsch owed him $750,000 for luring Hollywood stars such as Jessica Simpson to meet with Fritsch and consider participating in StarClub’s business ventures, according to reporting by Courthouse News Service.

Reps for Tyrese, Iglesias and Simpson did not immediately respond to Fox News Digital’s request for comment. 

The jury found Fritsch not guilty of a second wire fraud count. He remains free on bond.

A sentencing hearing is scheduled for Fritsch in the upcoming months. Fritsch faces a statutory maximum sentence of 20 years in federal prison.

This post appeared first on FOX NEWS

A cohort of Democratic representatives and senators are proposing legislation aimed at stalling President Donald Trump’s efforts to relocate federal agencies outside of Washington, D.C., something the president has taken steps to start doing. 

Guidance issued in February from the Trump administration instructed federal agencies to submit any proposed relocation of agency bureaus and offices by April 14, instructions that were tied to the president’s broader efforts to eliminate waste, fraud and abuse within the federal government. 

The pair of companion bills from Democrats in the House and Senate seeks to require agencies to conduct and share a comprehensive cost-benefit analysis with Congress and the public prior to any relocations.

‘Everyone standing here, every one of my colleagues, wants to get rid of fraud, waste and abuse… but that rhetoric [from the administration] is a cover for an agenda that is perverse and contrary to the interests of the United States of America,’ Rep. Steny Hoyer, D-Md., said during a press conference held at the Capitol announcing the new legislative effort.

‘All of this is targeted at depleting the federal workforce and nullifying the government of the United States,’ Rep. Jamie Raskin, D-Md., added. ‘That is the philosophy that is driving this entire thing.’ 

Maryland Democratic Sen. Chris Van Hollen previously introduced ‘The COST of Relocations Act’ in 2020, and again in 2023.

‘We hoped [the bill] wouldn’t be necessary again, but it is,’ Van Hollen stated at the press conference. ‘It’s necessary in order to stop Donald Trump and Elon Musk from wasting American taxpayer dollars by sabotaging services that the American public depends on.’

This post appeared first on FOX NEWS