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Sam Bankman-Fried appears at federal court in New York on Oct. 4, 2023, in this courtroom sketch.

Artist: Claudia Johnson

Much of the government’s case against Sam Bankman-Fried hinges on the testimony and text messages from those in his crypto inner circle who turned against him late last year after the implosion of FTX and sister hedge fund Alameda Research.

Of the dozens of items entered into evidence in the first three weeks of the trial, a bank of messages on encrypted app Signal paint perhaps the clearest picture of Bankman-Fried’s alleged crimes.

Bankman-Fried faces seven criminal counts, including wire fraud, securities fraud and money laundering that could land him in prison for life. Bankman-Fried, the son of two Stanford legal scholars, pleaded not guilty to all charges.

In trying to prove its case to a Manhattan jury, the government has presented a series of Signal exchanges involving Bankman-Fried, Caroline Ellison (his ex-girlfriend and the ex-CEO of Alameda Research), and former friends and top business execs Gary Wang, Nishad Singh and Ryan Salame. They date back to November 2021.

The messages gave jurors a rare look inside the casual conversations that culminated in a scheme described by U.S. Attorney Damian Williams as “one of the biggest financial frauds in American history.”

We’re quoting directly from the Signal messages that were entered as evidence, and not making spelling or other grammatical changes.

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

‘Small group chat’

The Signal thread dubbed “small group chat” includes Ellison, Bankman-Fried, and Joe Bankman, the defendant’s father who advised the company on tax-related issues and other things. Also in the group were Ramnik Arora, a former product lead for FTX, Ryne Miller, who was the company’s general counsel, Constance Wang, ex-operating chief, as well as Salame, Singh, Wang and four others.

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

The thread begins with two messages from Bankman-Fried posted at 3:47 a.m. on Nov. 7, 2022, the day FTX announced a liquidity crisis and began searching for cash to plug the gaping hole in its balance sheet.

At the time, Bankman-Fried pretended in public that all was well.

“FTX is fine. Assets are fine,” he wrote in a tweet that day. The post has since been deleted.

But as Bankman-Fried was tweeting reassurances and promising that customer funds were safe, executives were growing increasingly alarmed at the expanding shortfall, according to prosecutors. 

In the “small group chat” thread, Bankman-Fried put forth some “potential todos,” including halting withdrawals, sending a “confident tweet thread” and reaching out to firms like Silverlake, Sequoia, and Apollo as they “wake up over the next few hours” to try and shore up cash.

Later that morning, at about 5:22 a.m., Salame linked to a tweet from an anonymous crypto trader saying, “cant wait for my FTX airdrop for not moving any of my funds.”

Bankman-Fried chimed in with different ideas about how to take advantage of the post in an apparent effort to provide false hope to FTX customers that they’d receive free tokens if they kept their funds on the platform.

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

On Nov. 9, Ellison again looked to the group for guidance about how to handle the now infamous all-hands meeting of Alameda’s roughly 30 employees.

She proposed saying, “Alameda is probably going to wind down” and that there was “no pressure” to stay but help with “stuff like making sure our lenders get paid” would be “super appreciated.”

Bankman-Fried suggested she say something about there “being a future of some sort for those who are excited.”

Ellison ended up divulging a lot more than that in the staff meeting.

“Alameda borrowed a bunch of money,” which it used to make investments, Ellison said at the meeting, a secret recording of which was played by the prosecution. 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.”

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,” Ellison said on the recording.

Meanwhile, a day after signing the non-binding purchase agreement, Binance withdrew the offer, citing reports of “mishandled customer funds” and federal investigations.

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

‘Lots of withdrawals’

Zhao, an early investor in FTX before becoming a principal rival, had made himself a central character in the FTX downfall days earlier.

On Nov. 6, he tweeted that because of “recent revelations that have came [sic] to light, we have decided to liquidate any remaining FTT on our books.”

In a group chat with Bankman-Fried, Ellison, and Singh starting that day, Singh wrote “lots of withdrawals on ftx are queueing up,” with net changes of $1.25 billion in the last day, $230 million in the last three hours, and $120 million in the last hour.

Ellison responded with a “:(” and Bankman-Fried with an “oof” after first mistakenly writing “of.”

The three continued to strategize. Singh suggested a few hours later that they reach out to Zhao privately and “ask for a truce” to “stem the bleed,” though he and Bankman-Fried both worried that Binance wouldn’t deescalate in public.

Ellison separately tried to figure out what to tell Salame about whether FTX could meet all withdrawals. Bankman-Fried suggested she write, “we can meet a ton, though it’s already getting large.”

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

Later, Sam Trabucco, who had already departed as co-CEO of Alameda Research in August 2022, as well as Ellison, Ben Xie (Alameda’s head of trading), and Bankman-Fried, were in a group chat discussing how to respond to Zhao’s threat to liquidate his FTT tokens.

Ellison, who told jurors that she largely avoided social media, said she would tweet at CZ, a nickname for Zhao, that FTX would buy his entire stake at $22 per coin. Ellison also testified about the practice of using FTX customer funds funneled through Alameda to buy FTT to buoy the price during times of market volatility.

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

Bankman-Fried weighed in within minutes, writing, “I think the main point is just to counter the PR/narrative here — and Binance probably won’t take us up on it; I also think FWIW that the market is likely to buy more if we tweet it, but idk.” (FWIW is an acronym for for what it’s worth. IDK stands for I don’t know.)

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

The author’s visit

Author Michael Lewis, whose book profiling Bankman-Fried was published the day the trial began, was also the subject of some Signal exchanges.

In a chat on Jan. 5, 2022, Bankman-Fried alerted a group that included Ellison and Singh that Lewis would be coming to the Bahamas the next month to do reporting.

Ellison said her “instincts are more toward under the radar.” Bankman-Fried, a notorious press hound, responded, “same, except exactly the opposite.”

‘People of the House’

Adam Yedidia, one of the prosecution’s lead witnesses, met Bankman-Fried in college at the Massachusetts Institute of Technology, and the pair remained close friends.

In his testimony, Yedidia referred to a Signal thread called “People of the House,” referring to Bankman-Fried’s $35 million penthouse, where many employees lived.

In terms of who was paying the rent, Yedidia recalled Bankman-Fried saying he “assumed it’s just alameda paying for it in the end.”

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

The subject of campaign donations was pivotal to Singh’s testimony. The former FTX engineering chief, who pleaded guilty to six charges in February, alleged that his former boss was behind much of the scheme to funnel money to political campaigns.

Singh testified that Bankman-Fried directed money held in accounts belonging to Alameda Research be used for political donations. That continued even after Bankman-Fried was apparently aware that his crypto hedge fund couldn’t pay back the $13 billion in FTX customer funds it had borrowed.

While Bankman-Fried doesn’t face chares for campaign violations in this trial, a superseding indictment alleged he used customer funds to make more than $100 million in campaign contributions for the 2022 midterm elections. The government has incorporated that accusation within two of the charges that are still standing: wire fraud and money laundering.

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

‘Donation Processing’

Singh walked the jury through how the process worked.

He described a Signal chat dubbed “Donation Processing” that included Bankman-Fried and his brother, Gabe, Salame, and a political consultant named Michael Sadowsky, among others. Singh testified that Bankman-Fried or his brother would use this chat to request donations be made in Singh’s name. Salame, who had access to Singh’s bank account at Prime Trust Bank, would set up the transfer and then ping Singh in the channel to prompt him to go to his email and approve the wire request.

“My role was to click a button,” Singh said of the operation, adding that Salame had other ways to make the transfer from Singh’s funds that did not involve Singh having to do anything at all.

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

In a separate Signal chat between Singh and Sadowsky, Singh wrote on Jul. 5, 2022, that he was “averse” to “explicitly-woke stuff” but added that it was “hard to interact productively with democrats without that.”

Sadowsky called Singh the “center left face of our spending,” meaning that he would be “giving to a lot of woke s—.”

So, “if you’re not comfortable about it, you should think about that a lot,” wrote Sadowsky.

Singh responded, “don’t love boxing myself into only associating with people i don’t like” and said he would look to see if there were “other viable people at FTX for it.”

In questioning witnesses, the government homed in on loans made to Wang and Singh in the range of hundreds of millions of dollars.

Direct messages between Singh and Bankman-Fried showed an attempt by the witness to be cleared of these debt obligations.

In a direct appeal to Bankman-Fried, Singh wrote on Nov. 6, 2022, “one thing that’d seriously help me is if I didn’t have debts.”

He wrote, “I think most of them are loans: 500m for me exercising, more for US investments. I hope we can unwind these but not sure.” He said he would return anything he had in his bank account, but there wasn’t much there.

I “(will think about this),” Bankman-Fried wrote.

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

In the same thread, on Nov. 8, Singh wrote that Ryne Miller, FTX’s general counsel, seemed “super on edge” and “likely to resign” if they didn’t get it right.

Singh wrote, “this is wildly selfish of me, but they may need to know that it wasn’t a ton of people orchestrating it.” He added that, “it makes them more likely to want to be here to help save the situation and the others at least.”

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

As the grand scheme collapsed, Ellison expressed a great deal of relief in a private chat with Bankman-Fried.

Ellison wrote, “this is the best mood I’ve been in in like a year tbh.” (TBH is short for to be honest.)

In three consecutive messages, Bankman-Fried responded, “wow,” “uh,” “congrats?”

Ellison wrote, “I think I just had an increasing dread of this day that was weighing on me for a long time, and now that it’s actually happening, it just feels great to get it over with one way or another.”

Prosecutors are relying heavily on text messages sent among FTX and Alameda Research executives in the case against Sam Bankman-Fried.

Source: SDNY

Caroline Ellison details SBF's involvement in running Alameda Research: CNBC Crypto World

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2024 Cadillac LYRIQ buyers could score $10,500 in discounts

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2024 Cadillac LYRIQ buyers could score ,500 in discounts

The all-electric Cadillac LYRIQ was an Electrek favorite when it first made its debut two years ago. Now, LYRIQ buyers who have been waiting for a deal can score more than $10,500 in discounts on the Ultium-based Caddy.

Our own Seth Weintraub said that GM had come in, “a year early and dollar long at $60K” when he first drove the Ultium-based Cadillac LYRIQ back in 2022. He called the SUV “a stunner,” too, heaping praise on the LYRIQ’s styling inside and out before adding that the EV’s ride quality really impressed on long journeys.

Well, if the first mainstream electric Cadillac was a winner at its original, $57,195 starting price (rounded up to $60K for easy math), what could we call it at $10,500 less?

That’s a question that’s suddenly worth asking, thanks to huge GM discounts on the LYRIQ that prompted the automotive pricing analysts at CarsDirect to name the 2024 LYRIQ one of the industry’s “Best New Car Deals” this month:

A slew of incentives can enable you to save big on a 2024 Cadillac LYRIQ. First, EVs eligible for the federal tax credit qualify for $7,500 in Ultium Promise Bonus Cash from GM. Additionally, competing EV owners can score $3,000 in conquest cash.

Meghan Carbary | CarsDirect

With more than 100 kWh of battery capacity and 300-plus miles of real-world driving range (plus available 190 kW charging capability) the Cadillac LYRIQ ticks all the boxes – but you don’t have to take just my word for that.

You can check out Electrek‘s original First Drive video, below, and click here to find Cadillac LYRIQ deals near you.

First Drive: Cadillac LYRIQ | Luxury E-CUV

SOURCE | IMAGES: CarsDirect.

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Volvo CE rolls out autonomous equipment at Volvo Days 2024 [part 2]

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Volvo CE rolls out autonomous equipment at Volvo Days 2024 [part 2]

Volvo Days 2024 packed a lot of innovative new products into a few short days, but the company’s autonomous construction robots still managed to stand out.

A global shortage of qualified operators is impacting job sites everywhere, precisely at a time when demand for housing, mineral mining, and renewable energy construction is going from peak to peak. That’s why companies from Caterpillar to Tesla to Einride are pushing to advance autonomy the way they are.

And, like they’ve done with semi truck electrification, Volvo Group’s vision for the future has them firmly in a leadership role as the construction industry automates.

CX01 autonomous hybrid compactor

Volvo CE Unveils CX01 Single-Drum Asphalt Compactor Concept
Volvo CX01 autonomous compactor; photo by the author.

First revealed as a concept in 2021, Volvo CE’s CX01 autonomous “single drum” asphalt roller concept has seen continuous development in the years since. Making its Volvo Days debut, the CX01 has shed the original single drum design for a “split drum,” with each half being controlled by an internalized, independent electric motor.

The CX01’s electric motors not only help to propel and steer the roller, they also vibrate the drums individually, using some trick software calibration to effectively “cancel each other out,” delivering all the benefits of vibrating drum rollers without the noise.

It’s so smart, you guys

It’s also worth noting that the CX01 is something of an “extended range” EV, instead of a “pure” BEV. That’s because it uses a small, 1.4L diesel engine to spin a generator that powers not batteries, but capacitors (those blue things, above right). Those capacitors can be charged on grid power (or from an accompanying TC13 trench compactor), but they’re much better than batteries at releasing energy really quickly, enabling the diesel to operate at its maximum efficiency while maintaining extremely precise, high-torque movement from the motors.

Volvo CE engineers envision a team CX01 rollers units deployed on larger job sites that could work together and communicate with other pieces of equipment on the site. The connected equipment could help survey the job site, report on the conditions of the mat (density, temperature, and passes), and leverage AI to determine when and where to compact without the need for human operators.

All of which is great, sure – but they had me at “giant OneWheel.”

Volvo TA15 autonomous electric haul truck

Volvo TA15 autonomous haul truck; photo by the author.

Part of Volvo CE’ “TARA” line of autonomous products, the “production ready” TA15 autonomous electric haul trucks are already part of a number of pilot programs on Volvo customer job sites. Being autonomous, they’re ideally suited to performing repetitive routes, dozens of times per day, without exposing human operators to fatigue or injury.

Big robot dumper

The Volvo TA15 is a fully automated electric dumper designed to operate on busy job sites with tight tolerances. With the TA15, Volvo says customers will be able to replace larger, diesel-powered vehicles with a fleet of smaller, “right sized” Volvo TA15s. The electric haul bots offer cleaner, quieter operation and increase efficiency.

“TARA enables you to downsize and replace larger diesel-powered vehicles with a fleet of autonomous electric Volvo TA15s capable of running 24/7,” reads the official TARA release. “This not only helps you cut emissions and increase productivity, it will also help you rightsize your machinery and optimize your hauling routes.”

And that brings us to the real topic at hand: sustainability.

Electrek’s Take

Volvo SD110 single drum roller, via Volvo CE.

As we’ve often discussed on The Heavy Equipment Podcast, there are two types of sustainability, and both are important. The first is the “classic” version of sustainability, in that our choices need to sustain the planet and environment we live in. The second is sustainability of the business – the ability to keep doing business in a way that ensures the survival of the business, itself.

Looking at the conventional Volvo SD110 conventional roller, above, you can see the incredible amount of materials – of steel, rubber, plastic, glass, etc. – that simply isn’t needed to produce the CX01 roller we started this article with.

All that added mass has a massive hidden carbon cost. The cost of getting those materials out of the ground, the need for bigger, heavier roads to support the weight of the machine, and the bigger, burlier trucks and trailers needed to transport it. Heck, even the operator’s commute to and from the job site adds to the carbon cost of the SD110, over and above the harmful emissions from its diesel engine’s exhaust stack.

The CX01? It’s objectively more sustainable than the SD110 roller in every way, and does pretty much the same job.

The Volvo TA15, too, is lighter and more compact than a conventional rigid haul truck. That reduced mass enables job sites and mining operations to maintain narrower haul routs that are less expensive to build and easier/cheaper to maintain, all while contributing to carbon reductions all across even the broadest scope of job site operations.

That’s both sustainable, and sustainable – and just another reason why forward-thinking fleet buyers will be watching this space closely.

ORIGINAL CONTENT FROM ELECTREK.

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JB Hunt launches first electric aftermarket semi truck route in Arizona

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JB Hunt launches first electric aftermarket semi truck route in Arizona

Following successful inbound implementations in the Pacific Northwest, North Carolina, and Mexico, Daimler Trucks North America (DTNA) is expanding the reach of its electric semi fleet into Arizona with long-time associate JB Hunt.

JB Hunt will add the new Freightliner eCascadia electric semi to its Arizona fleet immediately, and put it to work delivering aftermarket truck parts from DTNA’s parts distribution center (PDC) in Phoenix to multiple DTNA dealers along a dedicated route.

The electric Freightliner truck is expected to cover approximately 100 miles in a given day before heading “home” to a Detroit eFill charger installed at Daimler’s Phoenix facility.

This milestone marks the first all-electric route in the DTNA aftermarket parts distribution network, significantly reducing carbon emissions and setting a precedent for future sustainable outbound logistics operations.

“This solution with DTNA is a great example of our commitment to supporting customers’ efforts to reduce their carbon footprint and work towards energy transition,” explains Greer Woodruff, executive vice president of safety, sustainability and maintenance at JB Hunt. “JB Hunt owns and operates several eCascadias on behalf of customers, and our drivers have really enjoyed their in-cab experience. As customer interest continues to grow, we are here to enable their pursuit for a more sustainable supply chain in the most economic means possible.”

Daimler is analyzing future expansion opportunities throughout its internal parts distribution and logistics with an eye on electrifing additional routes and further reducing the carbon footprint of its logistics operations.

JB Hunt will evaluate its utilization of the charging station for other customers in the area, eventually enabling fully integrated zero-emission vehicle solutions into its 3PL fleets.

SOURCE | IMAGES: Daimler Trucks North America.

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