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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 cash he 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 Wang will also be taking the stand this week for the government.

WATCH: Sam Bankman-Fried criminal trial begins in New York

Sam Bankman-Fried criminal trial begins in New York

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Trump’s latest offshore wind cancellation is a threat to the grid – ISO New England

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Trump's latest offshore wind cancellation is a threat to the grid – ISO New England

Trump’s Interior Department halted construction on 704 megawatt (MW) Revolution Wind, the US’s first multi-state offshore wind project that’s already 80% complete. Grid operator ISO New England says the decision is a threat to the grid.

ISO New England released a statement responding to the stop-work order, warning that “delaying the project will increase risks to reliability.”:

As demand for electricity grows, New England must maintain and add to its energy infrastructure. Unpredictable risks and threats to resources – regardless of technology – that have made significant capital investments, secured necessary permits, and are close to completion will stifle future investments, increase costs to consumers, and undermine the power grid’s reliability and the region’s economy now and in the future.

Revolution Wind, a joint development between Ørsted and BlackRock’s Global Infrastructure Partners, is a 65-turbine project capable of powering around 350,000 homes in Rhode Island and Connecticut once it’s complete. It was expected to come online next year. The project has created more than 1,200 jobs.

On August 22, the director of Bureau of Ocean Energy Management sent a vague letter to Ørsted commanding it to halt all activities on the fully permitted Revolution Wind, citing “national security interests,” yet providing no details.

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BOEM’s Record of Decision for Revolution Wind, reported in 2023 in Section 4.6, page 185, states that the national security effects of the project would be “negligible and avoidable.”

This latest move echoes Trump’s cancellation in April of New York’s $5 billion Empire Wind 1 project, which was already under construction off New York’s coast. No viable reasons were given for that stop-work order either, and the cancellation was reversed in May.

Kit Kennedy, managing director for power at Natural Resources Defense Council (NRDC), released the following statement in response to the Revolution Wind order:

The Trump administration’s war on the electricity needed to power the grid continues on all fronts. Halting Revolution Wind is a devastating attack on workers, on electricity customers, and on the investment climate in the US.

New England homeowners will feel this when they tear open their electricity bills and look at the surging costs of keeping the lights on.

This administration has it exactly backwards. It’s trying to prop up clunky, polluting coal plants while doing all it can to halt the fastest growing energy sources of the future – solar and wind power.

It makes no sense to say we have an energy emergency and then make decisions like this. Unfortunately, every American is paying the price for these misguided actions.

Read more: Trump reversal revives Empire Wind, NY’s offshore energy giant


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Tesla teases new product release on Friday

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Tesla teases new product release on Friday

Tesla is teasing a new product release on Friday, August 29th, coming to Europe and the Middle East. It’s likely going to be the Model Y Performance.

On X today, Tesla has teased an upcoming product release coming this friday.

The post is cryptic. It only mentions ‘spoiler alert’ and the date August 29 with what looks like a close up of a vehicle with what appears to be a spoil – hence the “spoiler alert” reference:

There are main suspect is the Model Y Performance due to the spoiler reference.

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Since the Model Y refresh in January, Tesla stopped selling the Model Y Performance. It is due to launch the top performance version under the new design.

When Tesla released the Model 3 refresh in 2024, it took about 4 months for Tesla to launch the new performance version.

Electrek’s Take

The only thing that I find strange with this likely being the Model Y Performance is the fact that they tweeted this from the Europe and Middle East account.

It would be strange for the Model Y Performance to launch there first, but who knows. Maybe Tesla started production at Gigafactory Berlin first.

I don’t think this will have a major impact on Tesla’s business. The Model Y Performance is the least popular version of the best-selling Model Y.

We don’t have the full mix of sales, but I wouldn’t be suprised if it represents less than 10% of Tesla’s Model Y deliveries.

The Model 3 Performance is probably a more popular option within the Model 3 lineup as it is a lot more fun to drive.

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Genesis GV60 Magma EV sheds camo, revealing a radical new look [Video]

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Genesis GV60 Magma EV sheds camo, revealing a radical new look [Video]

The GV60 Magma will have a distinct look and feel compared to other Genesis vehicles. As the first EV from its new performance sub-brand, the Genesis GV60 Magma will debut with enhanced power, advanced suspension, a sporty new design, and more. For the first time, it was caught on video racing around the Nürburgring, giving us our closest look yet.

Genesis GV60 Magma EV flexes new style at Nürburgring

We got our first look at the new Magma models last March at the NY Auto Show alongside the full-size Neolun concept.

Magma is “the brand’s expansion into the realm of high-performance vehicles,” Genesis boasted. Among the first vehicles to earn a Magma upgrade is the GV60.

Genesis fine-tuned the electric crossover SUV, giving it a wider and lower stance for improved control. The larger lower air intake contributes to the aggressive new look, while also serving to cool the batteries and motor, both of which have been upgraded for enhanced performance.

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Earlier this year, we got a good look at the GV60 Magma during winter testing in Europe. Although you could see a few new design features, it was mostly covered in camo.

Genesis-GV60-Magma-Porsche
Genesis GV60 Magma testing with other Magma vehicles (Source: Genesis)

After it was recently spotted with less camo at the Nürburgring race track in Germany, we are getting an even better idea of what to expect when it arrives.

The video from CarSpyMedia shows the Genesis GV60 Magma EV with a production body and minimal camouflage.

You can see the high-performance vehicle flexing its power and handling as it rips around the track. Like other Hyundai Motor performance EVs, including the new IONIQ 6 N, you can expect the Genesis GV60 Magma to deliver over 600 horsepower, if not closer to 700.

The current Genesis GV60 Performance delivers up to 429 horsepower and 516 lb-ft of torque, good for a 0 to 60 mph sprint in 3.7 seconds.

Horsepower 0 to 60 mph
(seconds)
Starting Price
Genesis GV60 Performance 429 3.7 $69,900
Genesis GV60 Magma ? ? ?
Porsche Taycan 402 4.5 $99,400
Porsche Taycan Turbo GT
(with Weissach Package)
1,092 2.1 $230,000
Tesla Model S Plaid 1,020 1.99 $89,990
Genesis GV60 Magma vs Porsche Taycan vs Tesla Model S Plaid

Genesis will launch the GV60 Magma EV later this year in Korea, followed by the US, Europe, and other global markets. We will learn prices and final specs closer to launch, but given the Performance models start at $69,900, you can expect a higher starting price tag, likely closer to $75,000.

At that it would be significantly less than the Porsche Taycan Turbo and Tesla Model S Plaid. Will it match the performance?

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