Business
Scott Bessent, Trump’s Billionaire Treasury Pick, Will Shed Assets to Avoid Conflicts
Scott Bessent, the billionaire hedge fund manager whom President-elect Donald J. Trump picked to be his Treasury secretary, plans to divest from dozens of funds, trusts and investments in preparation to become the nation’s top economic policymaker.
Those plans were released on Saturday along with the publication of an ethics agreement and financial disclosures that Mr. Bessent submitted ahead of his Senate confirmation hearing next Thursday.
The documents show the extent of the wealth of Mr. Bessent, whose assets and investments appear to be worth in excess of $700 million. Mr. Bessent was formerly the top investor for the billionaire liberal philanthropist George Soros and has been a major Republican donor and adviser to Mr. Trump.
If confirmed as Treasury secretary, Mr. Bessent, 62, will steer Mr. Trump’s economic agenda of cutting taxes, rolling back regulations and imposing tariffs as he seeks to renegotiate trade deals. He will also play a central role in the Trump administration’s expected embrace of cryptocurrencies such as Bitcoin.
Although Mr. Trump won the election by appealing to working-class voters who have been dogged by high prices, he has turned to wealthy Wall Street investors such as Mr. Bessent and Howard Lutnick, a billionaire banker whom he tapped to be commerce secretary, to lead his economic team. Linda McMahon, another billionaire, has been picked as education secretary, and Elon Musk, the world’s richest man, is leading an unofficial agency known as the Department of Government Efficiency.
In a letter to the Treasury Department’s ethics office, Mr. Bessent outlined the steps he would take to “avoid any actual or apparent conflict of interest in the event that I am confirmed for the position of secretary of the Department of Treasury.”
Mr. Bessent said he would shutter Key Square Capital Management, the investment firm that he founded, and resign from his Bessent-Freeman Family Foundation and from Rockefeller University, where he has been chairman of the investment committee.
The financial disclosure form, which provides ranges for the value of his assets, reveals that Mr. Bessent owns as much as $25 million of farmland in North Dakota, which earns an income from soybean and corn production. He also owns a property in the Bahamas that is worth as much as $25 million. Last November, Mr. Bessent put his historic pink mansion in Charleston, S.C., on the market for $22.5 million.
Mr. Bessent is selling several investments that could pose potential conflicts of interest including a Bitcoin exchange-traded fund; an account that trades the renminbi, China’s currency; and his stake in All Seasons, a conservative publisher. He also has a margin loan, or line of credit, with Goldman Sachs of more than $50 million.
As an investor, Mr. Bessent has long wagered on the rising strength of the dollar and has betted against, or “shorted,” the renminbi, according to a person familiar with Mr. Bessent’s strategy who spoke on condition of anonymity to discuss his portfolio. Mr. Bessent gained notoriety in the 1990s by betting against the British pound and earning his firm, Soros Fund Management, $1 billion. He also made a high-profile bet against the Japanese yen.
Mr. Bessent, who will be overseeing the U.S. Treasury market, holds over $100 million in Treasury bills.
Cabinet officials are required to divest certain holdings and investments to avoid the potential for conflicts of interest. Although this can be an onerous process, it has some potential tax benefits.
The tax code contains a provision that allows securities to be sold and the capital gains tax on such sales deferred if the full proceeds are used to buy Treasury securities and certain money-market funds. The tax continues to be deferred until the securities or money-market funds are sold.
Even while adhering to the ethics guidelines, questions about conflicts of interest can still emerge.
Mr. Trump’s Treasury secretary during his first term, Steven Mnuchin, divested from his Hollywood film production company after joining the administration. However, as he was negotiating a trade deal in 2018 with China — an important market for the U.S. film industry — ethics watchdogs raised questions about whether Mr. Mnuchin had conflicts because he had sold his interest in the company to his wife.
Mr. Bessent was chosen for the Treasury after an internal tussle among Mr. Trump’s aides over the job. Mr. Lutnick, Mr. Trump’s transition team co-chair and the chief executive of Cantor Fitzgerald, made a late pitch to secure the Treasury secretary role for himself before Mr. Trump picked him to be Commerce secretary.
During that fight, which spilled into view, critics of Mr. Bessent circulated documents disparaging his performance as a hedge fund manager.
Mr. Bessent’s most recent hedge fund, Key Square Capital, launched to much fanfare in 2016, garnering $4.5 billion in investor money, including $2 billion from Mr. Soros, but manages much less now. A fund he ran in the early 2000s had a similarly unremarkable performance.
Business
‘Avatar’ Suit Focuses on Hot Topic in A.I. Age: A Character’s Face
An actress accused the director James Cameron of stealing her likeness to create an “Avatar” character in a lawsuit filed on Tuesday in California — a case that reflects a core fear among Hollywood performers in the artificial intelligence age: losing control of their own faces.
The actress, Q’orianka Kilcher, also sued Disney, which controls the multibillion-dollar “Avatar” franchise, which started in 2009.
“In the age of A.I., our likeness is no longer safe,” Ms. Kilcher, 36, said in an interview. “While what happened to me is personal, it’s also a big warning that, if we don’t act now, this type of thing will become standard. This case is about the future of identity.”
The lawsuit involves Neytiri, the digitally created, blue-skinned warrior princess in Mr. Cameron’s three “Avatar” blockbusters. According to the complaint, Mr. Cameron used a photo of Ms. Kilcher as a teenager — without her knowledge — as the foundation for Neytiri, incorporating her features “directly into his production art” and digital production pipeline.
“Neytiri’s lips, chin, jawline and overall mouth shape” in the trilogy “are Q’orianka Kilcher’s,” the complaint said. “This was not a fleeting inspiration or a vague homage; it was a literal transplant of a real teenager’s facial structure.”
In 2010, Ms. Kilcher, who is also an Indigenous rights activist, met Mr. Cameron by chance at a charity event in Hollywood, where he told her that she was the “early inspiration” for Neytiri’s look, according to the complaint. “She did not take this to mean that her actual face had been replicated,” the complaint said.
Ms. Kilcher is suing now, the complaint said, because of an interview that Mr. Cameron gave to a French media outlet in 2024. In the interview, Mr. Cameron mentions Ms. Kilcher and “points to an image of Neytiri and says unambiguously: ‘This is actually her lower face,’” the complaint said. The interview came to her attention a year later.
“For the first time in a public forum, Cameron explicitly admitted the full truth about Neytiri’s design,” according to the complaint, which was filed in the U.S. District Court for the Central District of California in Los Angeles. “One of Hollywood’s most powerful filmmakers exploited a young Indigenous girl’s biometric identity and cultural heritage to create a record-breaking film franchise, without credit or compensation to her.”
A lawyer for Mr. Cameron did not respond to a request for comment. Disney had no immediate comment.
Ms. Kilcher’s action is the latest in a large number of legal attacks on “Avatar” over the years — almost all of them resolved by courts in Mr. Cameron’s favor, including five separate lawsuits accusing him of copyright infringement or the stealing of ideas. A sixth infringement lawsuit is ongoing and was expanded last month.
In part, Ms. Kilcher is suing under California’s decades-old “right of publicity” statute, which allows people to bring claims against unauthorized use of their identities. It’s a complex area of the law that has taken on a new immediacy in the age of generative A.I., an emerging technology that allows anyone with an internet connection to easily create images that replicate existing art, photographs and human likenesses.
Generally speaking, right-of-publicity laws (about 25 states have one) balance First Amendment protections by distinguishing between commercial exploitation (using a likeness to sell a product) and expressive works (such as news, art, parody). But “there is not always a bright line,” said Jennifer E. Rothman, a professor at the University of Pennsylvania’s Carey Law School who is viewed as a leading authority on right-to-privacy law.
Ms. Kilcher’s break in Hollywood came in 2005 when, as a 14-year-old, she was cast as Pocahontas in Terrence Malick’s “The New World.” She has since acted in films like “Dog” and TV shows like “Yellowstone,” and is a member of the Academy of Motion Picture Arts and Sciences.
Ms. Kilcher is asking for damages that include “all profits” attributable to the unauthorized use, including from the sale of “Avatar” tickets; the three “Avatar” films have collected $1.8 billion at the North American box office alone.
“The damages we are asking for are commensurate with the exploitation,” Arnold P. Peter, one of Ms. Kilcher’s lawyers, said in an interview.
Business
Crypto exchange Coinbase to lay off 14% of staff as AI reshapes work
Cryptocurrency exchange Coinbase said it’s slashing roughly 14% of its workforce, or about 700 workers, partly because artificial intelligence is reshaping the way people work.
“The biggest risk now is not taking action. We are adjusting early and deliberately to rebuild Coinbase to be lean, fast, and AI-native,” Coinbase Chief Executive and co-founder Brian Armstrong said in a Tuesday email to employees.
The email, which was posted on social media, said engineers with the help of AI are completing work in days rather than weeks. As more tasks get automated, that’s made it possible for the company to lean on smaller teams.
The company also cited other factors contributing to the job losses, including the volatility of the cryptocurrency business.
Founded in San Francisco, Coinbase is the largest cryptocurrency exchange in the United States. Millions of people use its platform to buy, sell, transfer and store cryptocurrency such as Bitcoin.
Coinbase is among tech companies that have been laying off workers and pointing to how AI is making workers more productive. Although some experts say the role AI has been playing is overblown, advancements in technology have also made it possible to generate code and automate other tasks. Companies are also spending more on artificial intelligence, some building new AI-powered gadgets or building out new data centers.
This year, companies such as Block, Meta, Oracle and more have announced they’re slashing thousands of workers. From January to March, tech companies have announced 52,050 layoffs, up 40% from the same period last year, according to outplacement and executive coaching firm Challenger, Gray & Christmas.
Coinbase is also changing how it operates, Armstrong told employees. It’s reducing management layers and some leaders will oversee 15 workers or more, his email said. Managers will operate like “player-coaches” and it’s experimenting with “one person teams” in which the role of an engineer, designer and product manager are part of one position.
“AI is bringing a profound shift in how companies operate, and we’re reshaping Coinbase to lead in this new era,” Armstrong told employees. “This is a new way of working, and we need to leverage AI across every facet of our jobs.”
Coinbase largely makes money from cryptocurrency transaction fees, but trading activity has slowed. In the fourth quarter of 2025, the company reported total revenue of roughly $1.8 billion, missing analysts’ expectations. The company posted a net loss of $667 million during that quarter, which it partly attributed to losses in certain strategic investments.
As of December, Coinbase had more than 4,900 employees, according to its website. Although the company leased office space in San Francisco, it has allowed employees to work remotely and doesn’t have a physical headquarters.
Coinbase’s share price fell more than 2% on Tuesday to $197.75.
Business
U.S. Trade Deficit Grew in March
The U.S. trade deficit in goods and services rose to $60.3 billion in March, increasing 4.4 percent from the previous month, after the Supreme Court struck down President Trump’s global tariffs, according to data from the Commerce Department released on Tuesday.
Exports grew 2 percent in the month, to a record $320.9 billion, as the United States exported more oil, soybeans and industrial supplies. The U.S. trade surplus in petroleum hit a record in March, as war with Iran pushed up the price of oil and U.S. energy exports. Imports also gained 2.3 percent in March, to $381.2 billion. The combination increased the monthly trade deficit, the gap between what the United States imports and what it exports.
Tariffs resulted in up-and-down swings in the trade deficit last year. The monthly trade deficit is now somewhat lower than it was in 2024. But overall, the figure hit a record last year, as the United States continued to import high-priced computer chips and weight-loss drugs, and importers stockpiled foreign goods before tariffs took effect.
The data provided the first snapshot of trade since the Supreme Court ruling forced major changes to the Trump administration’s tariff regime.
On Feb. 20, the Supreme Court ruled that Mr. Trump had exceeded his authority last year when he used an emergency law to impose steep tariffs on nearly every nation.
That ruling forced the administration to withdraw the double-digit tariffs it had issued under that law, which varied by country based on bilateral trade deficits. Mr. Trump immediately moved to replace those levies with a flat 10 percent tariff, issued under a legal authority known as Section 122.
The Section 122 tariff will expire in July unless Congress votes to reauthorize it. So the Trump administration has been working on tariffs to replace it. It has started two trade investigations under another legal provision known as Section 301, which allows the president to impose tariffs in response to unfair trade practices.
One of the new investigations would target countries that don’t have laws blocking imports made with forced labor. The other centers on what the administration calls “excess capacity” among 16 of the country’s largest trading partners.
The Trump administration says overproduction in the factory sectors of some foreign countries has resulted in large and persistent U.S. trade deficits with those nations. Representatives from various industries, ranging from sugar to technology to chemicals, are set to testify about the investigation on Tuesday and Wednesday in Washington this week.
Next week, Mr. Trump is expected to visit Beijing, for a meeting with the Chinese leader that will be partly focused on trade. U.S. imports from China have shrunk significantly, as the administration has imposed high tariffs on Chinese goods, and companies have relocated supply chains out of the country.
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