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Government Exhibit 1802

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Caroline Ellison, the government’s star witness in its criminal case against the disgraced former CEO of bankrupt crypto exchange FTX, is expected to take the stand on Tuesday, as the criminal trial of Sam Bankman-Fried resumes in a downtown Manhattan courthouse.

Ellison, who ran FTX’s sister hedge fund Alameda Research, pleaded guilty in December to two counts of wire fraud, two counts of conspiracy to commit wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering.

Part of Ellison’s plea deal with the government has involved cooperating with the prosecution’s case against Bankman-Fried, similar to the arrangement struck with Gary Wang — the lesser-known co-founder of FTX and Alameda, whose cross-examination picks up at 9:30 a.m.

Ellison offers a unique view of the defendant, having been one of the company’s earliest recruits in 2017. Bankman-Fried had reportedly convinced the Stanford grad to ditch her Wall Street trading job at Jane Capital to join Alameda as a trader, back when the hedge fund was still in its original office in the San Francisco Bay area. Ellison also spent years as Bankman-Fried’s on-again, off-again girlfriend and, at times, his roommate.

Caroline Ellison, former chief executive officer of Alameda Research LLC, center, arrives at court in New York, US, on Tuesday, Oct. 10, 2023. 

Yuki Iwamura | Bloomberg | Getty Images

U.S. Attorney Thane Rehn teed up Ellison’s prospective testimony in his opening statement to the jury last week, saying that Bankman-Fried “was using her as a front” when “in reality, he was still calling the shots at Alameda.”

Rehn went on to allege in his opening that it was Bankman-Fried who had concocted a “scheme to take money from FTX and give it to Alameda” and that Ellison would share the details of how she and her former lover stole customer money from FTX and deployed that cash through Alameda.

Meanwhile, Bankman-Fried’s lead defense attorney Mark Cohen spun a far different narrative in his opening remarks in court, casting Ellison as a leader who held firm control over the firm and whose leadership ultimately ran the company into the ground.

In Cohen’s recounting of events, Bankman-Fried had urged his former deputy at Alameda to “put on a hedge,” but “she didn’t do so at the time.”

Noticeably absent thus far in proceedings is the mention of Ellison’s co-CEO Sam Trabucco, who was a classmate of Bankman-Fried at MIT. Trabucco left Alameda in Aug. 2022 and has stayed relatively under the radar.

Lawyers for the U.S. Attorney’s office entered into evidence photos featuring Sam Bankman-Fried and his fellow co-workers at their shared $35 million Bahamian penthouse.

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For months, the 28-year-old has been the subject of mass speculation, as her private writings and public posts have been scrutinized by the press — and by criminal attorneys.

Ellison has tweeted about “regular amphetamine use,” reportedly journaled on Tumblr about her own exploration into polyamory, and in Michael Lewis’s new book about the rise and fall of Bankman-Fried, extensive business-like memos written by Ellison to Bankman-Fried shed new light on their beleaguered romance.

“Caroline sensed that, even as Sam promoted her to CEO of Alameda Research, he disapproved of her job performance — and she shared his opinion,” Lewis wrote in his book.

Lewis went on to share an excerpt from one of the memos that Ellison had sent to her boss and boyfriend: “It feels like I’m doing a much worse job managing Alameda than you would if you were working on it full-time,” she wrote. “I’m going to fuck up important things if you don’t step in sometimes,” continued the excerpt from Ellison’s memo shared in Lewis’s book.

The former Alameda exec had followed Bankman-Fried from California, to Hong Kong, and ultimately, to the Bahamas, as Bankman-Fried repeatedly shifted headquarters for his crypto companies. Lewis’s reporting includes speculation that Bankman-Fried’s departures from each city coincided with relationship troubles with Ellison.

In July, the New York Times published a report with private diary entries of Ellison leaked to the publication by Bankman-Fried, an act which ultimately landed him back in jail after Judge Lewis Kaplan revoked his bail for alleged witness tampering.

In a Google document from Feb. 2022 shared with the Times, Ellison wrote, “I have been feeling pretty unhappy and overwhelmed with my job…At the end of the day I can’t wait to go home and turn off my phone and have a drink and get away from it all.”

She added, “It doesn’t really feel like there’s an end in sight.”

Ellison’s insecurities both regarding her relationship with Bankman-Fried and in her role as the top leader at Alameda are chronicled extensively in Lewis’s reporting and in the leaked diary entries.

Court filings show that Ellison’s compensation paled by comparison with other executives in Bankman-Fried’s crypto empires. Of the $3.2 billion that went to the exchange’s founders and other top employees, $6 million went to Ellison, versus $587 million to FTX’s head of engineering Nishad Singh, $246 million to Wang and $2.2 billion to Bankman-Fried.

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This new $5,000 electric drone can carry you and your brave friends

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This new ,000 electric drone can carry you and your brave friends

As I peruse Alibaba for all sorts of fun and interesting electric vehicles, I often stumble across seemingly outlandish products that often have a real use case behind them. The best of those make it into the recurring Awesome Weird Alibaba Electric Vehicle of the Week column, and that’s precisely where this man-carrying drone lands today.

To be fair, I’m not sure the main purpose of this flying EV is to carry people.

They do advertise it with a few images of a person suspended beneath it to show off the drone’s carrying capacity. And at least one of the photos seems like it’s actually non-recreational as the guy appears to be in the process of accessing a communications tower platform.

I guess for those who don’t want to spend half an hour climbing a ladder to change a light bulb or swap a connector, a drone might be a shortcut to some of these difficult access areas. It could also open up the worker pool for that job to not only people with Popeye’s forearms.

But manned work doesn’t seem like the main use case for a heavy-lift drone like this.

Instead, it appears to me that it’s primarily a work drone designed for utility tasks where you’d want to lift a serious amount of weight in tools or supplies.

The stated 200 kg (440 lb) weight-carrying capacity is quite impressive, especially since the unit only weighs 40 kg (88 lb) by itself. But you’ll want that extra lift potential for a number of its other advertised uses, such as a water sprayer for cleaning tasks or a heavy-lift drone for moving supplies in mountainous or otherwise hard-to-reach areas.

Some companies even seem to use them to clean wind turbine blades.

Interestingly, the drone can either run off of its 16 on-board batteries or can be tethered to an electrical cable for continuous flying. For longer duration jobs like window washing, that’s probably the better way to go.

The batteries only offer 20 minutes of flying time, and replacing 16 batteries with freshly charged units would probably take you another 20 minutes on the ground. That limited battery flight time also means that if you are going to use it to carry workers up onto aerial platforms, you better not take the scenic route.

The drone does come with three parachutes that can automatically deploy if it enters free fall, which makes me feel only marginally better about hanging onto that rope ladder and going for a ride.

The factory also advertises that the controls can be run tethered, so you don’t have to use radio frequency in areas where it might be jammed. That has me a bit worried about what other uses they’re envisioning for a heavy-lift drone like this, but I’ll leave that for another day.

How our resident Photoshop wizard imagines I’d look on one of these things

With an advertised price of US $5,000, it also seems weirdly affordable. I have no idea what the going rate for a man-lift drone is these days, but I probably would have guessed more than that. You can barely buy an electric motorcycle for that much, and those only move in a single plane.

Of course, the catch is that you have to buy two of them, as that’s the minimum order quantity from the seller. So if you’re crazy enough to strap into one of these things, you better find an equally crazy friend for the second one.

And in case it wasn’t yet clear, please don’t actually try to buy one of these from Alibaba. This column is a tongue-in-cheek exercise in exploring just how amazing and interesting the world’s largest EV provider’s catalog of wacky vehicles has become. But I am certainly not encouraging anyone to run the financial and emotional gauntlet of trying to buy something expensive on Alibaba. I’ve been there and done that, and it’s not for the timid.

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China’s first large-scale sodium-ion battery charges to 90% in 12 minutes

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China's first large-scale sodium-ion battery charges to 90% in 12 minutes

China’s first major sodium-ion battery energy storage station is now online, according to state-owned utility China Southern Power Grid Energy Storage.

The Fulin Sodium-ion Battery Energy Storage Station entered operation on May 11 in Nanning, the capital of the Guangxi Zhuang autonomous region in southern China. Its initial storage capacity is said to be 10 megawatt hours (MWh). Once fully developed, the Station is expected to reach a total capacity of 100 MWh.

The state utility says the 10 MWh sodium-ion battery energy storage station uses 210 Ah sodium-ion battery cells that charge to 90% in a mindblowing 12 minutes. The system comprises 22,000 cells.

Once the project reaches 100 MWh, it could release 73,000 MWh of clean energy each year. That’s enough to power 35,000 households and reduce carbon dioxide emissions by 50,000 tonnes annually.

In an interview with China Central Television, Gao Like, a manager at the Guangxi branch of China Southern Power Grid, said that the energy conversion efficiency of its sodium-ion battery energy storage system exceeds 92%. It’s comparable to the efficiency of common lithium-ion battery storage systems, at 85-95%.

Chen Man, a senior engineer at China Southern Power Grid, said [via the South China Morning Post] that once sodium-ion battery energy storage enters the stage of large-scale development, its cost can be reduced by 20-30%. He continued:

This can be achieved through further improvements in the sodium-ion battery structure, manufacturing process, material utilization, and cycle life, thus lowering the energy storage cost per kilowatt-hour of electricity.

Large-scale sodium-ion batteries are gaining momentum due to their lower cost and abundance of raw materials compared to lithium-ion batteries. The challenges with sodium-ion batteries have been lower energy density and shorter lifespans that can limit efficiency and long-term performance in large-scale applications.

Read more: A new sodium-ion battery breakthrough means they may one day power EVs


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You can now lease a Rivian R1T for cheaper than the Nissan Titan, starting at $559/month

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You can now lease a Rivian R1T for cheaper than the Nissan Titan, starting at 9/month

If you’ve been eyeing a new Rivian R1T, now may be the time to start shopping. Rivian is offering R1T lease rates as low as $559 per month, which is even cheaper than the Nissan Titan.

After introducing leasing for the R1T last November, Rivian is already offering some massive savings opportunities.

Rivian is offering R1T lease configurations for as low as $559 per month. That’s for a new 2024 Rivian R1T Standard Adventure Package and includes $7,500 in lease cash.

The offer is for a 36-month lease with 30,000 total miles with $7,454 due at signing. That amounts to $766 per month. Total vehicle pricing totals $71,700, including Dual Motor AWD, 21″ Wheels, LA Silver Paint, Black Mountain interior, and a $1,800 destination fee.

Although the Nissan Titan’s MSRP is about $24,000 cheaper, the Rivian R1T is still the better lease deal.

Nissan has the 2024 Titan listed at $659 for 36 months. That’s with $5,949 due at signing, according to online research firm CarsDirect. The offer is based on an MSRP of $52,380 for the SV 4×2 Crew Cab model and 10,000 miles a year, which amounts to $824 a month.

Rivian-R1T-lease-cheaper
Rivian R1T (left) and R1S (right) (Source: Rivian)

Rivian R1T is not the only EV lease getting cheaper

The difference maker is the incentives. We’ve seen it with other models like the Hyundai IONIQ6/5 and Kona Electric.

Kia is also offering up to $12,000 off 2024 EV6 and EV9 models with massive stackable incentives.

GM cut prices on its Blazer EV, while deliveries of the new Equinox EV are now underway. The Equinox EV (2LT) currently starts at $43,295, but the $34,995 (1LT) version will be available later this year. With the $7,500 credit, the Equinox EV can be bought for as little as $35,795.

Rival Ford also slashed prices on the Mach-E by 17% earlier this year, driving triple-digit volume growth. Meanwhile, Ford has introduced several incentives for the F-150 Lightning as it looks to keep its title of top-selling EV pickup in the US.

With up to 410 miles range, an 83.9″ long extendable tailgate, up to 11,000 lbs towing, and a 0 to 60 mph sprint in 3 seconds, the R1T is built to upgrade your next adventure.

Rivian-R1T-lease-cheaper
Rivian R1T (left) and R1S (right) (Source: Rivian)

Rivian added R1S leasing options in January. The Rivian R1S can be leased for as little as $639 per month. That’s also for 36 months (30,000 miles total), with $8,534 due at signing.

Rivian’s R1S electric SUV was the seventh best-selling EV in the US last year, topping the Ford F-150 Lightning and Tesla Model X, as demand for large electric SUVs continues to grow.

If you’re ready to see what Rivian has to offer at some of the lowest prices so far, we can help you get started. You can use our links below to view deals on the Rivian R1S and R1T in your area.

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