Sam Bankman-Fried Trial appears at Federal Court in New York on Oct. 4th, 2023.
Artist: Claudia Johnson
Marc-Antoine Julliard typically trades cocoa beans. But in the spring of 2021, the London-based commodities broker decided to diversify into cryptocurrency trading. His platform of choice was FTX.
Two years later, Julliard stood as the prosecution’s first witness in the criminal fraud trial against FTX founder Sam Bankman-Fried, who’s accused of misusing billions of dollars in client money.
In testimony that lasted around 50 minutes on Wednesday, Julliard recounted his experience with FTX, including the “extremely anxious” feeling he had the day he unsuccessfully attempted to withdraw part of the $100,000 worth of crypto and cashhe had stored on the site. He and thousands of other FTX customers were practically wiped out when the exchange went belly up late last year.
Like many others, Julliard said he he was under the impression that there were “strong financials behind the company.”
Julliard is the poster child for the case the prosecution laid out in its opening statement as it tries to prove to a jury that clients were led to believe the money they stored with FTX was safe. Prospective customers, Julliard said, were drawn in through savvy marketing, with no reason to believe that FTX would be repurposing their crypto funds.
In a trial that’s set to last six weeks, Bankman-Fried, a man once revered as the “white knight” of crypto, faces seven federal charges, including wire fraud, securities fraud and money laundering, that could put him in prison for the rest of his life.
A jury was seated shortly after 11:30 a.m. (though four of the 12 jurors were already looking to be dismissed). Opening statements began about an hour later. Julliard took the stand just before 2 p.m. to a packed courthouse in Manhattan.
As the lead witness, Julliard helped lay out the government’s narrative. Much of his decision to buy into FTX had to do with the celebrities and venture funds attached to the brand. He referenced an ad with supermodel Gisele Bündchen and Formula 1 marketing. He also pointed to prolific media coverage, which bolstered his trust in the company.
Julliard wasn’t an aggressive crypto trader. He said he never participated in margin trading, or borrowing money to make purchases, nor did he engage in a lending program offered by the company that allowed users to earn interest on idle crypto.
Sam Bankman-Fried sits with his defense team during his fraud trial over the collapse of FTX, the bankrupt cryptocurrency exchange, at Federal Court in New York City, U.S., October 4, 2023 in this courtroom sketch.
Jane Rosenberg | Reuters
Defense wants customers to shoulder blame
The defense is trying to make clients accountable for what it says were their choices to buy and trade crypto.
“Sam didn’t defraud anyone,” said Mark Cohen, Bankman-Fried’s attorney, in his opening statement. Cohen called it a “hindsight case” brought by the government, and said that just because people lost money, doesn’t mean the 31-year-old Bankman-Fried committed fraud.
Bankman-Fried donned a fresh suit with a purple tie and a clean haircut — a much different look than the beach shorts, sandals and wild curls that helped define his image during crypto’s heyday. The entrepreneur, who Cohen described as a “math nerd that didn’t drink or party,” diligently took notes on his air-gapped laptop as he conversed with both of his attorneys and, during breaks, sometimes stood while emphatically motioning with his hands as he spoke to his counsel.
Throughout both sides’ opening statements, Bankman-Fried kept his eyes trained on the jury box. His head was turned 90 degrees to his right to watch those who will ultimately decide his fate. Bankman-Fried was joined in court by his parents, who are both being sued by FTX’s new management for having allegedly “exploited their access and influence within the FTX enterprise to enrich themselves…by millions of dollars.”
Cohen is projecting Bankman-Fried as a startup founder and equated running FTX and Alameda Research, his sister hedge fund, to “building a plane while flying on it.” He told the jury that there was no risk management in place. Specifically, he said the firm didn’t have a chief risk officer.
Far from the “cartoon of a villain” that the government presented, Cohen gave different explanations for his client’s supposedly illegal actions. One example dealt with the secret backdoor baked into FTX’s code that prosecutors say gave Alameda a way to borrow much needed capital.
Cohen said there was nothing secretive about this backchannel in the code base and said the special access to FTX was there because Alameda was initially set up as a market maker for the crypto exchange, which needed the liquidity, especially in its early days.
Cohen reminded the jury that the three insiders who will take the stand against Bankman-Fried have all signed cooperation agreements with the government.
A $10 billion fraud
The prosecution’s opening statement was delivered by Assistant U.S. Attorney Thane Rehn. Over the course of about a half hour, Rehn drove home the point that everyday investors were the ones who fell victim to FTX’s scheme. By the summer of 2022, he said, more than $10 billion had been stolen from thousands of FTX customers who had trusted custody of their crypto and cash to the platform.
Rehn said the evidence would show jurors how Bankman-Fried lied to FTX users, investors and lenders, and how he spent a good amount of the money he stole for his own good. Rehn referenced campaign contributions, for example, as one way that Bankman-Fried looked to curry favor on Capitol Hill.
Rehn called Alameda a “second, smaller and more secretive company” founded and controlled by Bankman-Fried that was integral to the defendant’s alleged scheme.
The government also teed up its star witness, ex-girlfriend and Alameda’s ex-CEO, Caroline Ellison. She pleaded guilty in December to multiple charges and has been cooperating with the U.S. attorney’s office in Manhattan for months.
Rehn plans to show that Bankman-Fried installed his girlfriend at the top of his hedge fund, though he remained the one calling the shots behind the scenes.
Allan Joseph Bankman, father of FTX Co-Founder Sam Bankman-Fried, and Barbara Fried, mother of FTX Co-Founder Sam Bankman-Fried, arrive at court in New York, US, on Wednesday, Oct. 4, 2023.
Stephanie Keith | Bloomberg | Getty Images
Noticeably absent was the mention of Ellison’s co-CEO Sam Trabucco, who was a classmate of Bankman-Fried at MIT. Trabucco left FTX in Aug. 2022, and has stayed relatively under the radar.
Also central to the government’s case is the alleged coverup to hide Bankman-Fried’s crimes. Those tactics include backdating contracts and using encrypted messaging apps set to auto-delete to avoid a paper trail.
“This man stole billions of dollars from thousands of people,” Rein said, as he closed his statement.
The prosecution’s second witness was Adam Yedidia, who met Bankman-Fried in college at the Massachusetts Institute of Technology. The pair remained good friends.
Yedida detailed his experience working first as a trader at Alameda for two months in 2017, and later as a software engineer for FTX beginning in January 2021. He said he resigned from FTX the day before the exchange filed for bankruptcy after a fellow developer told him that Alameda had used FTX customer deposits to pay back creditors.
Speaking quickly and deliberately with an air of practiced nonchalance, Yedida testified that he hadn’t talked to Bankman-Fried or seen him in person since Nov. 2022.
When asked why he was appearing under an immunity order, Yedida said he was concerned that as an FTX developer, he “may have unwittingly written code that contributed to a crime.”
Prosecutors got through a half hour of testimony before breaking for the day. The government will continue its questioning of Yedida at 9:30 A.M. on Thursday.
FTX co-founder Gary Wangwill also be taking the stand this week for the government.
A new video surfacing from a Tesla demonstration in Miami this weekend shows the Optimus humanoid robot taking a nasty fall. But it’s not the fall itself that is raising eyebrows, it’s the specific hand movements the robot made on its way down, which strongly suggest it was mimicking a remote operator frantically removing a VR headset.
Humanoid robots are all the hype right now. Billions in investments are pouring in, and Elon Musk claims it will be a trillion-dollar product for Tesla, justifying its insane valuation.
The idea has been that with the advent of AI, robots in human form could use the new generalized artificial intelligence to replace humans in an increasingly larger number of tasks.
However, there are still many serious concerns about the effort, both at the ethical and technological levels.
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Technologically, most humanoid robot demonstrations have relied on remote control by human operators – pointing to a remaining gap between the software and hardware.
That was more than a year ago, and despite claims that Tesla has made “AI demos” of Optimus since, it appears the company still relies on teleoperation to control them during demonstrations.
The Tesla Optimus Miami Incident
This weekend, Tesla held an event called ‘Autonomy Visualized’ at its store in Miami. The goal was to showcase Tesla’s “Autopilot technology and Optimus.”
However, there was nothing “autonomous” at Tesla’s “autonomy” event.
Many Tesla fans were seen posting videos of a Tesla Optimus robot handing out bottles of water at the event. It was also seen posing for pictures and dancing.
On Reddit, someone posted a different video of the demonstration:
As you can see, Tesla Optimus moved its hands too quickly, causing some water bottles to drop to the ground. It then loses its balance and begins to fall backward.
But the most interesting part is that just before falling backward, both of its hands immediately shoot up to its “face” in a distinct grasping motion, as if pulling an object off its head.
The robot, of course, is not wearing anything on its head.
The motion is instantly recognizable to anyone who has used VR or watched teleoperation setups. It appears the human operator, likely located backstage or in a remote facility, removed their headset in the middle of operating the robot for unknown reasons.
Optimus faithfully replicated the motion of removing a non-existent headset as it crashed to the floor.
Here’s a look at how Tesla trained Pptimus with VR headsets in its lab:
Electrek’s Take
This is embarrassing, but not just because the robot fell. Robots fall; that’s part of the R&D process. Boston Dynamics blooper reels are legendary, and they never really eroded the company’s credibility.
The problem here is the “Wizard of Oz” moment.
The specific motion of removing the “phantom headset” destroys the illusion of autonomy Tesla tries so hard to curate.
Even recently, Musk fought back against the notion that Tesla relies on teleoperation for its Optimus demonstration. He specified that a new demo of Optimus doing kung-fu was “AI, not tele-operated”:
Musk said again during Tesla’s last earnings call in October:
“Optimus was at the Tron premiere doing kung fu, just up in the open, with Jared Leto. Nobody was controlling it. It was just doing kung fu with Jared Leto at the Tron Premier. You can see the videos online. The funny thing is, a lot of people walked past it thinking it was just a person.”
Musk keeps telling shareholders that Optimus will be the biggest product in history and that millions of units will be working in factories soon. But if they are still relying on 1:1 teleoperation to hand out water bottles right now, it feels like we are still far away from a useful generalized Optimus robot.
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After images of an the new mid-sized electric crossover were leaked by the Chinese MIIT, Nissan pulled the wraps off its all-new NX8 – and it looks so good, I’m wondering if it couldn’t spearhead the brand’s American turnaround.
Like its sedan siblings, the all-electric version of Nissan NX8 crossover rolls on an 800V system architecture and features a CATL-sourced LFP battery pack with 5C ultra-fast charging technology (xC is how many you can charge in an hour, effectively, so 60 minutes divided by 5 = it can charge in as little as 12 minutes). That battery reportedly sends power to a single electric motor putting out either 215 kW (~290 hp) or 250 kW (~335 hp), depending on model.
EREV version of the NX8, meanwhile, features a similar setup to the N6, pairing a 1.5L ICE producing 109 kW (~145 hp) with a 195 kW (~260 hp) electric motor. Expect the NX8 EREV to get slightly less than the N6’s claimed 112 miles of electric-only range (Chinese cycle).
The NX8 is expected to reach its first customers in April 2026. Take a look at some of the firs official photos of the new Nissan crossover, below, then let us know how you think this would do in the US in the comments section at the bottom of the page.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
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This week, BYD crossed a major manufacturing milestone as its battery production crossed 113 GWh in the first three quarters of 2025 – but instead of celebrating, the company is doubling down with a new “Zero Defects” initiative to bring battery quality to an even higher level.
CarNewsChina reports that the new “Zero Defects” plan at BYD was launched internally at the start of Q3, with a focus on minimizing manufacturing defects across all stages of the battery’s life, from the manufacturing line to the end user.
The initiative coincides with BYD’s growing role as a battery supplier to other automakers and its expanding battery energy storage system (BESS) business, which are giving BYD both an international footprint and global benchmarks.
In its ongoing bid to prove itself even further in the global battery market, BYD will reportedly emphasize operational efficiency, error reduction, and standardization across manufacturing, process control, and customer service, with the end goal believed to be, “management practices comparable to those of Toyota.”
Note that BYD has not released official details regarding performance metrics or milestones for its new Zero Defects goal, but the message is clear: BYD plans to keep getting better.
SOURCE: CarNewsChina; images via BYD.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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