The daily business briefing: June 6, 2023

1. SEC sues crypto exchange Binance

The Securities and Exchange Commission on Monday filed a lawsuit accusing foreign-based Binance, the world's biggest cryptocurrency exchange, of running an illegal exchange in the United States, The Wall Street Journal reported. The SEC also said Binance misused customer assets. The lawsuit named Binance founder and controlling shareholder Changpeng Zhao as a defendant, saying he and the company diverted customers' funds to Sigma Chain, a trading entity he controlled. Binance also allegedly mixed billions of dollars' worth of customer assets and sent them to Merit Peak, another entity owned by Zhao. Investors pulled $780 million out of Binance in 24 hours after the SEC filed the suit, data firm Nansen said Tuesday.

The Wall Street Journal Reuters

2. Apple unveils Vision Pro mixed-reality headset

Apple on Monday unveiled its Vision Pro mixed-reality headset, the iPhone maker's first major new product since the Apple Watch in 2014. The $3,499 headset will let people use their eyes and hands to move through apps, and use their voices for search. Vision Pro users will be able to use the devices to play videos, watch movies, or view their own photos and videos. The device also will allow users to create a realistic-looking avatar, and switch between Augmented Reality and full Virtual Reality with the flip of a dial. The headset, which has been in development for years, is supposed to be CEO Tim Cook's signature addition to Apple's stable of products.

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CNBC The Verge

3. Allstate stops offering home insurance to new California customers

Allstate quietly stopped providing property and casualty insurance to new customers in California last year, USA Today reported Monday. The news followed State Farm's announcement late last month that it would stop offering home insurance to new customers in the state due to the threat of wildfires and increased construction costs. Allstate revealed its plans without fanfare in November when it reported 2022 third-quarter earnings, said Brittany Nash, a spokesperson for the company. "The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes, and higher reinsurance premiums," Nash said in a statement.

USA Today

4. Stock futures struggle

U.S. stock futures edged lower early Tuesday. Futures tied to the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were down 0.1% at 7 a.m. ET. The Dow and the S&P 500 fell 0.6% and 0.2%, respectively, on Monday. The tech-heavy Nasdaq fell 0.1%. The losses followed a rally that lifted the S&P 500 to its highest point in nine months. Stocks have gained this year on hopes that the Federal Reserve's aggressive interest rate hikes to fight inflation were nearing an end. But persistent economic strength eroded hopes that the Fed would cut rates late this year. Investors are awaiting the Federal Reserve's June 13-14 meeting to see whether the central bank will pause its rate increases for now.

CNBC The Wall Street Journal

5. Spotify laying off 200 in 2nd round of job cuts

Spotify will lay off 200 employees, or about 2% of its workforce, as part of a global reorganizing effort, the company said Monday. Most of these layoffs will come from the brand's podcast division. Sahar Elhabashi, a vice president and head of podcast business, said the cuts would help make the streaming service an "optimal organization" as its talk-content business matures. Elhabashi added that Spotify's podcast business had become "focused on delivering even more value for creators," which "begins with maximizing consumption from the massive audience we've established through format innovation and ensuring that more creators in more places achieve success." "Unfortunately, this means saying goodbye to close colleagues and friends," Elhabashi said.

Bloomberg Spotify