Good morning. FTX’s offshore status and its willingness to keep American traders off its Bahamas-based exchange in large part shielded the company from strict U.S. laws governing trading and how investments can be sold to the public.

But FTX’s implosion last week and reports that it used customer funds to back an affiliate’s risky venture investments have exposed the company and its founder to potential criminal liability, according to attorneys who specialize in white-collar criminal law.

The Manhattan U.S. attorney’s office is investigating FTX’s collapse, according to people familiar with the matter. One focus for prosecutors, at least initially, is likely to be examining reports that FTX lent customer funds to Alameda Research, a crypto-trading firm that traded on FTX and other exchanges. FTX founder Sam Bankman-Fried, who resigned as chief executive on Friday, also founded and owns Alameda Research.

Mr. Bankman-Fried has acknowledged in tweets that he made mistakes before his company’s downfall and bankruptcy.

FTX’s terms of service told its users that they own the cryptocurrencies in their accounts. “None of the digital assets in your account are the property of, or shall or may be loaned to, FTX Trading,” the document says. The terms of service with FTX Trading Ltd.—the entity that filed for bankruptcy last week in Delaware federal court—are still online.

Using customer funds for proprietary trading or lending them out—without an investor’s consent—is generally forbidden in the regulated securities and derivatives markets.

• FTX Collapse Sets Back Crypto Agenda in Washington
• The Risky Business of Sam Bankman-Fried
• FTX Debacle Could Drag Down Decentralized Crypto Too

Speakers at the WSJ Risk & Compliance Forum on Nov. 16 include Brian Nelson from the U.S. Treasury Department and Robert Silvers from the Department of Homeland Security, along with multiple experts on corporate risk and compliance. Sign up here for discussions on economic sanctions, forced labor, climate change regulation, whistleblowers and cybersecurity.

A hot cyber insurance market cools down. The market for cyber insurance has begun to stabilize after a surge in ransomware attacks in recent years propelled a steep rise in premiums, observers say.

Cyber insurance can pay ransoms to hackers who lock company technology systems, or it can help offset the cost of responding to data breaches, Risk & Compliance Journal's Richard Vanderford reports. Now, the premium increases of recent years seem to be slowing, if not halting entirely, as insurers get better at evaluating risks, new market entrants begin offering coverage, and supply and demand assert themselves.

U.S. sanctions target Russian military suppliers. The Treasury Department on Monday imposed sanctions on four dozen people across six countries, and companies associated with them, an effort to tighten the U.S. campaign of economic pressure on Russia.

The targets of the sanctions include a network of individuals and companies the U.S. says help procure military equipment for Russia, and a Swiss businessman accused of laundering money for one of Russia’s richest oligarchs.

The Biden administration said the targeting of a Russian electronics company’s foreign supply network would help deny Moscow’s military the technology it needs to prosecute the war in Ukraine, and that sanctioning billionaire Suleiman Kerimov’s family and a key Swiss associate hits at the Russian elites who bankroll the Kremlin.

Amazon faces $1 billion competition lawsuit in the U.K. Amazon.com Inc. faces a $1 billion lawsuit in Britain alleging it has broken U.K. and European competition law, the latest legal challenge to the e-commerce giant in Europe.

The suit, filed in the U.K. on Monday, alleges the company has abused its position by “promoting offers favorable to Amazon and excluding other sellers” on its website, regardless of whether the other sellers were offering better deals. The suit was brought by international law firm Hausfeld & Co. LLP on behalf of Julie Hunter, a member of the Financial Services Consumer Panel, an independent body that represents the interests of U.K. consumers.

Google reaches $391.5 million settlement over location tracking practices. Google has agreed to pay $391.5 million to settle allegations that it persistently misled consumers about how it tracked them on mobile phones and other devices.

The settlement, announced by a coalition of 40 state attorneys general Monday, said that Google violated state consumer protection laws by tracking consumers even when their location-history setting on their mobile phones was turned off.

In other compliance-related news...

• The White House on Monday said it would tap Martin Gruenberg, the acting head of the Federal Deposit Insurance Corp., for a second term as the banking regulator’s leader.
   
• President Donald Trump and the Justice Department presented dueling views on whether he can shield certain records from his time in office from federal investigators.

President Biden, Xi Jinping move to stabilize U.S.-China relations. President Biden and Chinese leader Xi Jinping sought to halt a rapid downward spiral in relations between Washington and Beijing, instructing officials to resume stalled talks on major global priorities, but the two countries acknowledged areas of deep disagreement that could disrupt those efforts.

Mr. Biden emerged from the meeting projecting cautious optimism, and a Chinese readout of the talks signaled a renewed willingness from Beijing to engage with the U.S.

“I absolutely believe there need not be a new Cold War,” Mr. Biden said following the meeting on Monday, which took place in Bali, Indonesia, ahead of a summit of the Group of 20 major economies. “We’re going to compete vigorously, but I’m not looking for conflict. I’m looking to manage this competition responsibly.”

• U.S. Official Says China Is Uncomfortable With Russia’s Rhetoric

In other risk-related news...

• The population of the planet is set to hit 8 billion Tuesday, according to projections from the United Nations that forecast the number will grow to 8.5 billion by 2030 as life expectancy rises.
   
• More than 1 million barrels a day of Russian oil exports are set to be obstructed by Western sanctions that are expected to come into force within weeks, the International Energy Agency said Tuesday, and Moscow will struggle to redirect shipments elsewhere, threatening to further tighten global energy markets.
   
• Russian troops re-established new lines of defense following their withdrawal from the strategic southern Ukrainian city of Kherson, as Ukrainian President Volodymyr Zelensky called for justice for Russian war crimes in an address to world leaders.

Elon Musk talks of ‘too much work on my plate’ after Twitter takeover. Elon Musk said he has too much work to juggle since the billionaire added running Twitter Inc. to his tasks with the $44 billion takeover of the social-media platform.

“My workload has recently increased quite a lot,” Mr. Musk said in a virtual appearance Monday at the B20 business conference in Indonesia, on the sidelines of a summit of leaders of the Group of 20 advanced and developing economies. “I have too much work on my plate, that is for sure.”

• Elon Musk’s Tesla Compensation Trial in Delaware Court Kicks Off

In other governance-related news...

• The chief executive of Newman’s Own Foundation is preparing to leave, and the nonprofit has been searching for a new leader, as the organization contends with a legal challenge by members of the late Paul Newman’s family.

Amazon set to lay off thousands of corporate workers. Amazon Inc. is preparing layoffs that could total about 10,000 workers as the company continues a broad cost-cutting review led by Chief Executive Andy Jassy, a person familiar with the matter said.

The tech company’s layoffs, which could begin as soon as this week, are targeted for corporate employees and could primarily affect Amazon’s devices business, which includes its hit Alexa products, as well as human resources and retail, the person said. The retail unit has been the primary organization that has had to respond to a slowdown of sales this year.

Tyson Foods CFO apologizes again as company profit is pressured. Tyson Foods Inc. Chief Financial Officer John R. Tyson on Monday apologized again after his arrest last week, and the company said its board was launching a review of the incident.

Mr. Tyson, the 32-year-old son of the meat giant’s chairman, was arrested on Nov. 6 for criminal trespass and public intoxication, according to a Fayetteville Police Department report. He was found asleep in the wrong Fayetteville, Ark., home, according to the police report.