Secret recording of Caroline Ellison meeting with Alameda staff exposed in SBF criminal trial
Caroline Ellison, former chief executive officer of Alameda Research LLC, leaves Manhattan Federal Court after testifying during the trial of FTX CEO Sam Bankman-Fried, on October 10, 2023 in New York City.
Michael M. Santiago | Getty Images
In an all-hands meeting on the evening of Nov. 9, 2022, Alameda Research employees gathered in a circle to listen to CEO Caroline Ellison, who was sitting on a beanbag.
It was 11 p.m. in Hong Kong, and roughly half of the employees — 15 people — at Sam Bankman-Fried’s crypto hedge fund were present. Christian Drappi, a former software engineer at Alameda, was one of them. Ten others joined via video from the Bahamas. The Alameda office was across the street from FTX, Bankman-Fried’s crypto exchange.
On Thursday, Drappi took the stand as a government witness in the criminal trial against Bankman-Fried, which is taking place 11 months after Alameda and FTX spiraled into bankruptcy. Bankman-Fried faces seven federal fraud charges and the potential of life in prison. He’s pleaded not guilty.
Drappi’s appearance on the stand in Manhattan came at the end of Ellison’s third day of testimony and included a recording of the Hong Kong meeting. Rick Best, a trader who had joined Alameda just days earlier, was directly to Ellison’s right and secretly recording the meeting as audio.
The prosecution played multiple clips from the recording, and the defense team played one in cross-examination.
To a packed courtroom, Drappi described Ellison’s demeanor that night as “sunken.” He said she was “kinda slouching” and “did not display confident body language.”
“Alameda borrowed a bunch of money,” which it used to make investments, Ellison said on the recording. But as crypto prices fell, “FTX had a shortfall of user funds” and then “users started withdrawing their funds” and they “realized they would not be able to continue.”
Drappi can be heard on the tape asking about FTX’s plan to pay back customers. Ellison, who has pleaded guilty to fraud charges and is cooperating with prosecutors, responded that the company would raise money to fill the hole. Drappi told the jury that he was concerned with that response because it’s not typical to raise outside money for that purpose.
Drappi asked Ellison if Alameda’s loans were collateralized through the spot margin group. She said they weren’t, and Drappi said, “That seems pretty bad.”
Drappi wanted to know from Ellison if this was a “YOLO thing.”
He was asked in the courtroom to explain YOLO, and said, “It’s an acronym for ‘you only live once.'”
“When you do a YOLO thing, it’s something that’s spontaneous and not premeditated,” Drappi said. “I wanted to have Ms. Ellison confirm that indeed, you know, they had meetings about this and there was a deliberate decision, as I suspected it would be.”
At one point on the recording, Ellison giggled. Drappi, who said he’d known Ellison for a year and a half, described that as her “nervous laughter” and said she did it quite often.
When she was asked by a staffer whose idea it was to plug Alameda’s loan losses with FTX customer money, she said, “Um, Sam, I guess,” and giggled.
“FTX basically always allowed Alameda to, like, borrow user funds, as far as I know” she said on the recording.
Drappi resigned within 24 hours.
Caroline Ellison is questioned during Sam Bankman-Fried’s fraud trial over the collapse of FTX, the bankrupt cryptocurrency exchange, at Federal Court in New York City, U.S., October 11, 2023 in this courtroom sketch.
Jane Rosenberg | Reuters
Drappi started at Alameda on May 31, 2021. Over the next 18 months, he worked in three offices: Hong Kong, the Bahamas and San Francisco. He was in Hong Kong as the business was falling apart.
In his testimony, Drappi said he observed Bankman-Fried working at the Hong Kong office and sat about 40 feet from him there for a couple months. The two hung out some out of the office, including to play padel, a hybrid of tennis and squash.
Drappi said Bankman-Fried maintained direct communications with Alameda employees through Signal. He weighed in on large trades and had access to “pointer,” Alameda’s internal interface, as well as to the firm’s back-end data.
In regards to trading, Drappi referenced one instance in which a senior trader said “Sam wanted to do it,” referring to a trade involving selling Japanese bonds and buying the currency. Drappi said he spoke to Alameda traders every day.
The night before the all-hands meeting, Nov. 8, Drappi said he was in the office along with Ellison and two traders, Tony Qian and David Nyeste. At about 11 p.m., Bankman-Fried posted a tweet announcing that Binance was buying FTX, in what would amount to a rescue of the exchange.
Drappi said the response was “shock.”
The Binance agreement was non-binding. On Nov. 9, the rival exchange backed out of the deal, and CEO Changpeng Zhao said FTX’s “issues are beyond our control or ability to help.” Two days later FTX declared bankruptcy.
WATCH: Caroline Ellison details SBF’s involvement in running Alameda
Florida’s State Parks are stepping up their environmental and operational game, introducing a large fleet of powerful electric bikes to support park ranger patrols.
The Florida State Parks Foundation, under its sustainability-focused Greener Initiative, recently announced the expansion of e‑bike units across the state’s parks system. The fleet of Velotric Nomad e-bikes, each equipped with 750‑watt motors and with a claimed 65‑mile range, can offer a substantial 500‑lb payload capacity. They also feature 4″ wide fat tires optimized for riding on rough paths or off-road trails, making them ideal for park ranger patrols.
These e‑bikes are now being distributed to multiple locations throughout Florida, including Fort Clinch, Olustee Battlefield Historic, Rainbow Springs, Stephen Foster Folk Culture Center, and Suwannee River State Park.
According to Julia Gill Woodward, CEO of the Foundation, the overwhelming success of the first wave of e‑bikes prompted swift expansion. “The Greener Initiative has done incredible things to reduce our environmental footprint,” she noted, adding that it’s “even more amazing when Greener projects align with resources that support our rangers.”
These additions bring the statewide fleet to 50 e‑bikes, funded via sales from the “Explore Our State Parks” specialty license plate. Starting in 2023, the Greener Initiative has rolled out a variety of efforts to make Florida’s parks cleaner and more efficient, including slashing emissions, cutting down on waste, lowering energy consumption, and enhancing the overall experience for visitors.
Electrek’s Take
I love this, and it’s a great example of how e-bikes are perfect for so many different patrol uses among park rangers, police officers, security companies, and other types of official fleet usage.
We’re seeing this more and more, and the reason is obvious: It works. E-bikes are a lot cheaper than alternatives like UTVs, golf carts, or “real” vehicles like cars and trucks. They require significantly less maintenance, and they’re a lot more fun too.
I just hope they mount some extra water bottle holders. I often ride in Florida, and in the summer, I can drink a gallon a day… on an electric bike!
Via: WCJB
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Lucid’s most adventurous vehicle has just arrived. The Lucid Gravity can drive 450 miles on a single charge, comfortably fits seven, and is faster than the average sports car. Lucid promises the new X concept takes the electric family hauler to a new level.
Meet the Lucid Gravity X adventure-ready EV SUV
Lucid has been hyping the new model as “a bold new concept of electric exploration,” describing it as its most adventurous vehicle to date.
At Monterey Car Week on Friday, we finally got our first look at Lucid’s stunning new Gravity X concept. Based on the Lucid Gravity Grand Touring, which features an impressive up to 450 miles of EPA-estimated range, AWD, and a 0 to 60 mph sprint in just 3.4 secs, the X is designed to take you even further.
As Lucid put it, the X “advances this exceptional foundation, exploring what it would be like to push the limits further.
The concept features a new look, lifted ride height, and added off-road elements for all on and off-road adventures. Lucid fine-tuned the front and rear ends to improve approach and departure angles. It also slapped all-terrain tires, protective skid plates, and tow hooks on it, just in case.
Like we first saw in the teaser, the X concept is equipped with an integrated crossbar with LED lights and a roof box.
Lucid says every detail on the new concept was intentional, from the Astral Drift satin paint to the topographical references to Big Spur and Death Valley on the hood.
The interior features upgrades, including premium leather seats, high-performance floor mats, and a microsuede steering wheel.
According to Lucid, the Gravity X, pronounced Gravity Cross, is “ready to go anywhere. Take on everything. And compromise nothing.”
Although it’s just a concept for now, the X gives us a glimpse into a future off-road Gravity trim. As we mentioned earlier this week, Lucid could be preparing to introduce a rugged new variant to compete with Rivian’s California Dune Edition R1S and R1T models.
What do you think of the rugged Gravity X Concept? Should Lucid bring it to life? It wouldn’t be surprising to see a new variant hit the market soon.
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes new e-bikes from Heybike, the Priority Skyline launch, Segway’s new 50 MPH electric scooter, a Bafang hub motor with automatic shifting, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We also have a Patreon if you want to help us to avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the Wheel-E podcast today:
Here’s the live stream for today’s episode starting at 9:00 a.m. ET (or the video after 10:00 a.m. ET):
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