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Analysis: What the second month of war in Ukraine may bring

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Analysis: What the second month of war in Ukraine may bring

However what have we realized up to now? CNN posed a number of key inquiries to Henry Hale, a George Washington College professor whose experience contains Russian politics. Our dialog, evenly edited for stream and brevity, is beneath.

However Ukraine’s navy energy has not been the one shock.

WHAT MATTERS: What has been most stunning to you one month into the invasion?

HALE: Within the huge image, I believe the invasion itself is simply fairly stunning within the gorgeous scale of the occasion in world historical past. Whereas Russian President Vladimir Putin has definitely acted militarily earlier than, only a few individuals thought earlier than, perhaps a 12 months in the past, that Putin was really considering a full-scale invasion of Ukraine.

Individuals inside Russia did not count on it, most Ukrainians did not count on it. And most analysts, I believe, additionally did not count on it. And what was fascinating was that the Biden administration began warning that this was going to happen, and it turned out that they have been proper.

There are a selection of different surprises that I believe are additionally necessary. One, I believe, is simply the poor nature of Russia’s planning for this.

To start with, its navy technique seems to have been very ill-suited for the duty at hand. It appears to have been primarily based on the concept that Ukraine was going to capitulate inside a matter of days, that it could be greeted with individuals popping out into the streets with flowers. And that simply was primarily based on a whole misunderstanding of Ukraine and the character of Ukrainian society.

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One other a part of the poor planning that I believe can be crucial is that the Kremlin didn’t prime Russia’s personal public nicely for this sort of motion. Proper up till the precise invasion was launched, Russian media have been telling their very own individuals: “We’re not going to invade.” Russian leaders have been saying: “Have a look at how hysterical the West is speaking about an invasion. That is simply loopy. Nobody’s speaking about an invasion.”

And so what that meant was that when the precise invasion began, they needed to persuade people who it was not an invasion. And meaning elaborating a complete propaganda edifice round the concept that that is only a restricted navy operation, that one way or the other there are Nazis in Kyiv which might be attacking freedom-loving individuals within the Russian-occupied territories of japanese Ukraine — that that is all a part of a grand Western scheme to ultimately take down Russia, carry it below its management. And so supporting such a lie may be very, very tough.

One other shock has been the capabilities of the Ukrainian navy. Most individuals’s reminiscence of Ukraine’s navy got here from 2014 (when Russia invaded and subsequently annexed the Crimean Peninsula from Ukraine).

It seems that, behind the headlines, important navy reform efforts have been happening, together with a restructuring of the decision-making course of throughout the navy there, which included giving native commanders extra autonomy to make calls. And this seems to have been fairly necessary as a result of the Ukrainian navy has managed to carry its personal in opposition to the a lot bigger Russian navy for this primary month of the disaster.

What’s performed out as anticipated?

Different components of the invasion, like Russian troop morale and Putin’s crackdown on dissent inside Russia, are enjoying out as anticipated below the circumstances.

WHAT MATTERS: What hasn’t shocked you?

HALE: I believe one factor that that was to be anticipated is the poor Russian troop morale. Partly, this pertains to what I stated about one of many surprises, which was individuals in Russia weren’t ready for the concept of an invasion.

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However I believe a part of the rationale that they did not initially wish to put together them to really assist an invasion of Ukraine is that it could be very laborious to persuade people who one thing like this is able to be really needed. And it seems principally they despatched these troopers into fight having advised them: “Nicely, you are simply going to be collaborating in workout routines.” However then they discover themselves despatched into Ukraine, capturing on individuals who they’re advised are Nazis however do not actually look very similar to Nazis.

And on this context, I believe one would count on that the precise Russian troops themselves may not be that extremely motivated. And I believe that is one thing that we see.

One other factor that has performed out as anticipated if Russia have been to launch one thing like that is that the invasion is accompanied by a harsh crackdown inside Russia itself on any type of dissent and the unfold of any type of correct data.

So that they’ve principally tried to chop off any sources of exterior data. They’ve made it unlawful to even name this a “warfare” or an “invasion.” It’s a must to use the formally, accredited terminology of a “navy operation,” or “a focused operation” to “denazify” Ukraine.

Western leaders current united entrance

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Leaders attending a slew of emergency summits this week have been working to choose the subsequent section of their response to Russia’s warfare, with new US sanctions and refugee help among the many steps rising from the snap talks.

In a press release afterward, President Joe Biden stated NATO was “as robust and united because it has ever been.”

WHAT MATTERS: How important are the emergency summits amongst Western leaders?

HALE: I believe that the totally different conferences are oriented towards doable developments which might be going to occur on this warfare. And it’s extremely laborious proper now to anticipate precisely what they’re, however I believe individuals wish to get on the identical web page.

I believe it is unlikely that Russia goes to have the ability to take pleasure in any type of full victory. And in order that raises plenty of questions on what is going to should be finished sooner or later.

I am personally skeptical that we will see a negotiated finish to this anytime quickly. I believe the Ukrainians are simply too decided to struggle. And if Putin is type of failing sufficiently to be pressured right into a place of negotiation, I believe Ukrainians are simply going to be much less and fewer keen to provide him a break principally by recognizing any of the territorial positive factors that his navy has made up so far.

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However on the identical time, it is prudent to maintain diplomatic channels open.

The place do issues go from right here?

Whereas there is a rising image that Russia’s assault on Ukraine has not gone to plan, the nation continues to make use of its air energy to obliterate cities and goal civilians to push Ukraine into submission.

WHAT MATTERS: Some consultants warn that we could possibly be getting into a deadlier section of this warfare, with Putin feeling the necessity to double down on his assaults within the face of embarrassment. Do you share this concern?

HALE: Sadly, I believe that could be a very actual concern. I believe virtually all the pieces is at stake for Putin proper now, as a result of something wanting victory goes to be seen as an indication of weak point for him at a time when he is already pushing 70 and questions are already arising inside Russia even earlier than these occasions about succession.

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It isn’t out of the query, unhappy to say, that he would possibly determine that his solely guess is to make use of some type of nuclear possibility. It is laborious to say precisely what that will be, nevertheless it’s doable. I do not assume that the Russian inhabitants is supportive, generally, of beginning a nuclear warfare — definitely not deploying a nuclear weapon in opposition to individuals whom Putin and his regime have been continuously telling individuals are principally one individuals with Russians.

And so I believe it is doable that using a nuclear weapon may really result in the collapse of his regime amongst people who find themselves appalled by that.

One would additionally hope that if he did order an motion like that, that perhaps some individuals inside his command that must really perform that order would, at that time, refuse to hold out his orders. So it’s extremely laborious to say.

I imply, if he actually has gone up to now in and is simply keen to do something within the hopes of saving himself and his regime, then I do not assume we are able to rule out some type of nuclear escalation right here.

However I nonetheless harbor hope that, actually, he is not suicidal and would attempt to discover a way wanting that to have the ability to declare some type of victory inside Russia itself.

China’s function

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The US has data suggesting China has expressed some openness to offering Russia with requested navy and monetary help as a part of its warfare on Ukraine.
Biden uses call with Xi to lay out consequences for China if it supports Russia attack on Ukraine

That leaves open a troubling risk for American officers — that China could assist extend a bloody battle that’s more and more killing civilians, whereas additionally cementing an authoritarian alliance in direct competitors with the USA.

WHAT MATTERS: What wouldn’t it imply for China to supply Russia with navy and monetary help?

HALE: My sense is that an important impression could be symbolic, giving Russia and folks throughout the Russian regime a way that this isn’t simply Putin — that Russia and Putin have allies on this endeavor. And that may maintain their willingness to proceed to prosecute this navy operation that they are engaged in and to type of carry the invasion so far as they will.

And clearly if Russian provides are weakened and Russia’s financial system is already weakened, this may assist cut back the prices which might be felt by peculiar Russians ensuing from these actions. So I believe that is type of what’s at stake.

Alternatively, I am unsure that it is actually in Chinese language pursuits to essentially all out take the aspect of Russia. To some extent, I believe it is in China’s curiosity simply to take a seat again and let the Russians and the Europeans and the People type of go at it.

The massive image

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Relying in your view, the West and Russia are actually combating the final wrestle of the Chilly Struggle or the primary in a brand new age of confrontation as autocracies like Moscow and Beijing type a broad hostile entrance in opposition to Western-style democracy.

WHAT MATTERS: Considering long run, what sort of harm has Russia finished to its popularity on the world stage, and what are the perfect and worst outcomes for Russia at this level?

HALE: Sadly these felony actions, I believe, have dirty Russia’s popularity in all probability for a technology on the earth and in different international locations of the post-Soviet area.

And naturally precisely what meaning shall be affected by how the warfare ends. On one hand, if it winds up being that the Russian inhabitants one way or the other winds up toppling Putin, or individuals round Putin wind up toppling Putin and ending the warfare and pulling out the Russian troops, that will be the perfect final result for Russia itself, as a result of then a minimum of it could give lots of people inside Russia credibility in saying, “Nicely, this was not us.”

Alternatively, if Russia continues to prosecute the warfare, if the regime stays steady, if most individuals inside Russia are quiet or simply go away — by which case then you have got a extremely autocratic system in Russia, way more autocratic than had been the case earlier than.

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I believe this popularity is simply going to be so poisonous that you will see a divide that very a lot resembles the divide between the communists and the free world through the Chilly Struggle, the place there’s not going to be loads of interplay throughout these borders. And that would final so long as the Kremlin is ready to survive in energy.

CNN’s Stephen Collinson contributed to this report.

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Austin Welcomed Elon Musk. Now It’s Weird (in a New Way).

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Austin Welcomed Elon Musk. Now It’s Weird (in a New Way).

Each weekend for the past few months, Mike Ignatowski has gone to one of two Tesla dealerships in Austin, Texas, to protest Elon Musk, Tesla’s chief executive and the most famous transplant to the state’s most left-leaning city.

Not too long ago, Mr. Ignatowski, a 67-year-old computer engineer, was an admirer of Mr. Musk — before Mr. Musk aligned himself with President Trump. Now Mr. Ignatowski waves a “Fire Elon” sign during the protests, even as he conceded he’s not quite mad enough to part with the blue Model 3 Tesla that he bought “before we knew Elon was crazy,” as his bumper sticker attests.

That’s how it goes in Texas’ capital, where Mr. Musk’s sharp rightward shift has been received with a mix of anger and hair-pulling agony. Austin’s conflicted feelings reflect both the billionaire entrepreneur’s economic influence on the city and the city’s broader transformation from a medium-sized college town arranged around the State Capitol to a tech-fueled metropolis with a glass-and-steel skyline and a changing image.

Tie-dyed T-shirts still urge residents to “Keep Austin Weird,” mostly in hotels and tourist shops. But a different kind of counterculture has taken root amid an influx of decidedly right-of-center figures (including Mr. Musk), self-described freethinkers (like the podcasters Joe Rogan and Lex Fridman), and conservative entrepreneurs (like Joe Lonsdale). Already in town was Austin’s resident conspiracy theorist, Alex Jones, and his far-right Infowars. There’s even a new, contrarian institution of higher learning looking to compete with the University of Texas at Austin, the University of Austin.

Weird, perhaps, but not in the way of the old bumper-sticker mantra.

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“If you say ‘Keep Austin Weird’ to somebody under the age of 40, they would think of that as an antique-y slogan, like Ye Old Shoppe,” said H.W. Brands, a historian at the University of Texas. “It doesn’t have any resonance for their lived experience of Austin.”

The city’s transformation followed a deliberate, decades-long project to attract technology companies to its rolling hills.

“I’m one who thinks it has changed for the better,” said Gary Farmer, who helped attract new businesses as the founding chairman of Opportunity Texas, an economic development group. “The culinary arts, the performing arts, the visual arts, the music scene — it’s all better.”

At the same time, housing prices have skyrocketed, and the population — already the whitest among big cities in Texas — has shed some of its diversity.

In 2023, more people moved out of Austin’s Travis County than moved in, and the share of Hispanic residents in Austin declined even as across all of Texas, the Hispanic population has grown to become a plurality. Black families have also been leaving Austin, said Lila Valencia, the city’s demographer.

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The biggest increase in new residents has been among households making more than $200,000 a year, which grew by 70 percent from 2019 to 2023, Ms. Valencia said. The share of households making below $100,000 a year declined.

Austin now has about 100 accredited private schools, more than double the 39 it had two decades ago. Enrollment in the city’s public schools has been falling.

For years, locals resisted development, to no avail.

“They were building a lot of freeways in Houston and Dallas, and Austin turned away that money,” said Tyson Tuttle, the former chief executive of Silicon Labs, who moved to Austin in 1992. “They were saying, if we don’t build it, they won’t come. And they came anyway.”

Many in Austin’s new elite have chafed at the progressive policies in city and county government over issues such as homelessness and policing. Last year, some of them, including Mr. Musk, backed a primary challenger to the local Democratic district attorney, José Garza. In a companywide email, Mr. Musk encouraged Tesla employees to vote in support of the challenger.

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Mr. Garza won the primary by a two-to-one margin.

“If an asteroid fell from the sky and hit a Democratic candidate for office in Travis County and killed that person, that person’s corpse would still beat a live Republican,” said Evan Smith, a former leader of the Texas Tribune, an Austin-based nonprofit news site.

Still, the city’s demographic transformation has led many to lament its fading identity as a place of street buskers and a cross-dressing, homeless mayoral candidate. The Austin Chronicle, an alternative weekly newspaper, even sells a shirt that reads “R.I.P. Old Austin.”

Earlier this year, passers-by stopped to listen to an impromptu street performance on Congress Street, like old times, except the guitarist was the Trump-friendly Ted Nugent, and his appearance had been organized by hard-right Republicans.

Almost as common are complaints about the complainers.

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“I’m not one of those naysayers about Austin who say it was all better in the old days,” said Terry Lickona, who for 50 years has produced “Austin City Limits,” a public television showcase for local and national musicians. He added, “Austin has always attracted outsized characters,” including Willie Nelson and Michael Dell, the computer maker.

The struggles at Tesla, where profits have dropped sharply since Mr. Musk began closely aligning himself with Mr. Trump, could directly affect the city. At the same time, Austin is set to be the proving ground for his next big venture: self-driving Tesla taxis, which Mr. Musk promised for June.

Mr. Musk did not respond to an interview request.

“Having Tesla here is a huge benefit to the city,” said Mr. Tuttle, who has recently founded an artificial intelligence startup. “I wish that Elon would come home and focus on his business.”

The arrival of Mr. Musk and Tesla five years ago was a key moment for the city, punctuating a yearslong transformation that was accelerated by the Covid-19 pandemic. Many people, including celebrities and dissatisfied Californians whose politics were shifting amid the lockdowns, sought out the relative openness of Texas.

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“It’s, like, most of the good stuff and very little of the bad stuff,” Mr. Rogan said during a 2021 interview with Mr. Adler, months after moving there.

The result has been a slight moderation of the city’s politics and tensions over Mr. Musk between those who hate his actions in Washington and those who love his role as a technology entrepreneur.

The city “attracts people that are on all sides of issues,” said Joshua Baer, the founder of the Capital Factory, which helps finance and nurture technology startups. “My world is generally Elon fans and supporters.”

On a recent evening, more than two dozen Austinites convened in a church meeting room adorned with colorful messages of inclusivity for a gathering of Resist Austin, which organizes protests against Mr. Musk and Mr. Trump at Tesla dealerships.

“Our mission is lawful nonviolent resistance of authoritarians,” Ian Crowl, an organizer, said to the group, which included retirees, tech workers and graduate students. “If you want to throw a rock at a Tesla,” he added, “that’s not what we’re doing here.”

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Such tensions have been on the mind of Tesla drivers in Austin as well. Vikki Goodwin, a Democratic state representative, said she tries to be “invisible” when driving around in hers. When a car rammed into her at a stop light recently, she worried it might have been intentional.

“Oh my God,” Ms. Goodwin said she thought, “is it anger that caused him to drive into my car?”

The driver, in fact, was using his wife’s gas-powered car, Ms. Goodwin said he told her, and he assumed it would slow down quickly when he took his foot off the gas pedal — like his Tesla does.

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Surge in Chinese listings drives boom for US small-cap IPO market

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Surge in Chinese listings drives boom for US small-cap IPO market

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The volatile market for small US initial public offerings is “booming” thanks to a surge of Chinese listings on New York’s Nasdaq as companies race to beat a rule change that blocks the smallest deals.

The surge in listings kicked off late last year with 42 small offerings in the last three months of 2024, followed by 41 in the first quarter of this year — the two busiest quarters in records back 15 years, according to equity capital markets group Capital Markets Gateway (CMG). This was up from 20 in the second quarter of 2024 and 29 in the third.

Fifty-three of the past two quarter’s listings were from China and Hong Kong, with only 18 from the US, and all but nine on Nasdaq. CMG’s data excludes special purpose acquisition vehicles, which raise money in order to take over a private business.

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“The microcap IPO market is booming,” said Matthew Kennedy, a senior strategist at Renaissance Capital, citing small Chinese companies in sectors from pharmaceuticals to construction. “It’s a highly speculative area,” he said, with many investors losing out because most of the stocks eventually fall far below their initial offer price.

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The IPOs came ahead of a raft of policy changes enacted by Nasdaq, effective as of April 11, which include requiring companies listing on its lowest rung under certain standards to raise at least $15mn. The Securities and Exchange Commission said Nasdaq’s new rules would “promote fair and orderly markets” and “protect investors and the public interest”.

Daniel McClory, head of equity capital markets and China at US underwriter Boustead Securities, said he had “30 IPOs in process right now and more than a third are for [companies in] south-east Asia and Greater China”.

The market for large-cap listings has meanwhile disappointed hopes of a revival under Donald Trump. Waves of market volatility around the president’s tariff announcements led bankers to postpone several hotly anticipated tech IPOs while other large listings received a cool reception.

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This has not stopped a flurry of sub-$50mn deals since tariffs shook markets in April. Small IPOs have continued despite Nasdaq raising the bar last month — with eight further deals since the rule change.

“Explosive returns” from companies such as Hong Kong-based Diginex, an ESG data group, and Chinese group EPWK Holdings, a crowdsourcing platform, “can fuel interest from traders hoping for quick gains”, said Kennedy.

Line chart of Share price, $ showing Shares in EPWK surged in late April but collapsed in early May

Shares in Diginex have climbed 1,375 per cent since it listed in January. Last Tuesday, it said UAE royal Sheikh Mohammed bin Sultan bin Hamdan Al Nahyan had struck a $300mn deal giving him the right to buy 6.75mn of its shares before the end of the year.

EPWK had risen 470 per cent in the months after its February market debut, but plunged 75 per cent last Monday.

The market for these small offerings is dominated by amateur traders, who are often more willing to jump on perceived bargains in the stock market during times of disruption when big money managers stay away.

The US Financial Industry Regulatory Authority in 2023 warned investors about “unusual price increases on the day of or shortly after the IPOs of certain small-cap issuers, most of which involve issuers with operations outside the US” and “IPOs raising less than $25mn”.

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The average value of money raised in the small IPOs tracked by CMG in the six months to March was around $9mn.

Brokers say there could be more small IPOs if market conditions improve. “If the market settled down and co-operated we could do an IPO a week,” McClory said. “As it is, we’re targeting about one a month.”

The two most prolific underwriters in the space — Dominari Securities and RF Lafferty — have each taken seven companies public this year, including Chinese “machine vision” company Lianhe Sowell and Hong Kong hotpot chain MasterBeef.

RF Lafferty is headquartered in the Trump Building in New York’s Financial District. Dominari Securities, which acted as lead underwriter for Diginex’s IPO, is a subsidiary of Dominari Holdings, a fintech group based about four miles north in Trump Tower. 

Shares in Dominari Holdings rose 580 per cent in the six weeks before a February 11 filing revealing that the president’s sons Donald Trump Jr and Eric Trump had joined its advisory board, the Financial Times reported last month.

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Dominari and RF Lafferty did not respond to requests for comment.

The rush of smaller Chinese IPOs comes as concerns swirl among some investors over whether Trump will delist some Chinese stocks from US exchanges amid trade tensions with Beijing.

One banker at a small US broker said some Chinese companies listing in the US recently had “inverted their corporate structure” to obscure where they carry out the bulk of their business. He said that Chinese companies with an overseas subsidiary were converting their operating company into the parent company “to sanitise the Chinese nature of the listing”.

A bar chart of counts of microcap IPOs by country of headquarters, 2023-25

McClory said he expected that any Trump ban would probably target large state-owned enterprises and sensitive industries rather than small companies. He dismissed concerns that Chinese IPOs in the US were taking investment dollars that would otherwise benefit US entrepreneurs.

“Virtually all of these Asian IPOs were full of investors from Greater China, or Chinese-American investors in the US and outside of China,” he said. “It’s not like they come to the US and take money from American widows and orphans.”

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Chiefs superfan 'ChiefsAholic' sentenced to 32 years in Oklahoma prison

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Chiefs superfan 'ChiefsAholic' sentenced to 32 years in Oklahoma prison

A Kansas City Chiefs fan, ChiefsAholic, poses for photos while walking toward Empower Field at Mile High before an NFL football game between the Denver Broncos and the Chiefs,on Jan. 8, 2022, in Denver.

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TULSA, Okla. — A Kansas City Chiefs superfan known as “ChiefsAholic” was sentenced Monday in an Oklahoma courtroom to serve 32 years in state prison for robbing a Tulsa-area bank, a sentence that will be carried out after he finishes serving time in federal prison.

Xaviar Babudar, 30, appeared in a Tulsa courtroom and apologized to the court and to the victims of the December 2022 robbery of the Tulsa Teachers Credit Union in Bixby, Oklahoma, said Babudar’s attorney, Jay-Michael Swab.

“He expressed sincere remorse and took full responsibility for his actions,” Swab said.

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Babudar already was serving more than 17 years in federal prison for a string of 11 bank robberies across seven states where he stole nearly $850,000 to finance his social media stardom. Swab said the robberies also were the result of a gambling addiction.

Tulsa County District Attorney Steve Kunzweiler had sought life in prison for Babudar.

“He is a serial robber who traumatized these victims and numerous other victims across this country,” Kunzweiler said in a statement.

Tulsa County District Judge Michelle Keely ordered Babudar’s 32-year sentence to run concurrently to his federal sentence, which means after he is released from federal prison he will be transferred to state custody to serve his remaining 14 years.

Babudar developed a following on his @ChiefsAholic account on the social platform X after attending games dressed as a wolf in Chiefs gear. His avid support of the Chiefs became well known on social media.

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