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Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Over the past month, lawyers in the criminal trial of Sam Bankman-Fried have brought close to 20 witnesses to the stand and presented hundreds of exhibits to the 12 jurors who will decide the fate of the boy once deemed the king of crypto.

The jury, which began deliberations on Thursday afternoon, has a mountain of evidence to consider in determining whether the 31-year-old founder of FTX is guilty of seven criminal counts, which include wire fraud, securities fraud and money laundering. Bankman-Fried, who has pleaded not guilty to all charges, faces more than 100 years in prison if convicted.

While prosecutors were able to present the jury with testimony from members of the defendant’s inner circle, Bankman-Fried’s case rests largely on his own appearance on the witness stand.

“From beginning to end, Sam Bankman-Fried’s team failed to come up with a real game changer,” said Renato Mariotti, a former prosecutor in the U.S. Justice Department’s Securities and Commodities Fraud Section and now a trial partner in Chicago with Bryan Cave Leighton Paisner. “His fraud was brazen and difficult to explain away, and he lacked the discipline to keep his mouth shut even after it was apparent that he was under criminal investigation.”

In addition to oral testimony, the government brought in other evidence to try and prove its case and to paint a picture of an executive who got too much, too fast, and spent well in excess of his means. These exhibits include encrypted text messages, emails, promissory notes, Google docs, spreadsheets, leaked videos and photos displaying Bankman-Fried’s lavish lifestyle, including of his $35 million condo in the Bahamas.

Lawyers for the U.S. Attorney’s office entered into evidence a series of photos featuring the $35 million penthouse where Sam Bankman-Fried and his fellow co-workers resided.

Source: SDNY

$1.1 billion in promissory notes

For weeks, prosecutors have shown the jury how billions of dollars in FTX customer money went to political donations, venture investments and luxury real estate. They traced the hundreds of millions of dollars that went from company coffers to Bankman-Fried’s personal accounts.

The prosecution presented a series of relatively simple, two-page promissory notes. According to agreements signed by the defendant and Caroline Ellison, who ran hedge fund Alameda Research, Bankman-Fried borrowed more $1.1 billion in the year before his companies — FTX and Alameda — filed for bankruptcy.

Bankman-Fried admitted on the stand that there were likely more loans that weren’t properly documented, so the borrowing probably exceeded what was presented into evidence.

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Secret emails

Much of the government’s case against Bankman-Fried hinges on the testimony, emails, and text messages from former top lieutenants who turned against him late last year.

In one email, shared by prosecutors, Bankman-Fried promised preferential treatment to Bahamian customers on the FTX cryptocurrency exchange.

In a message to Ryan Pinder, the attorney general and minister of legal affairs for the Bahamas, Bankman-Fried claimed FTX had “segregated funds for all Bahamian customers” and would be “more than happy to open up withdrawals for all Bahamian customers on FTX, so that they can, tomorrow, fully withdraw all of their assets, making them fully whole.”

The email was sent Nov. 9, one day after FTX had halted withdrawals and two days before it filed for bankruptcy. FTX users had collectively pulled $5 billion off the platform in what amounted to a bank run.

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Two other separate email chains show that Bankman-Fried seriously mischaracterized his role at Alameda Research, according to prosecutors.

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

In a message to Rob Creamer, the CEO of Geneva Trading and chairman of FIA Principal Traders Group, Bankman-Fried wrote “Alameda has a totally separate team” that he didn’t manage.

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Bankman-Fried wrote in an email to a Wall Street Journal reporter that Alameda’s account access “is the same as others” and that its traders don’t have “any special access to client information, marketdata, or trading.” According to the government, those claims have been debunked through witness testimony and internal company documents and text messages.

Alameda’s preferential treatment is spelled out in the two exhibits listed below. They show Alameda’s “allow negative” feature, and a line of credit on FTX that was $65 billion compared to $150 million or less for all other customers on the exchange.

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Google Docs

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

A big part of the government’s case revolves around the ways Bankman-Fried allegedly directed spending of money at Alameda long after he was no longer officially running the hedge fund.

In a message to FTX’s then general counsel Can Sun, Bankman-Fried pushed to get a $250 million transfer to hedge fund Modulo Capital expedited in full within eight hours. Sun later testified about the transaction under a non-prosecution agreement with the government.

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Getting chummy with celebrities

Bankman-Fried’s chummy ties with celebrities and his enthusiasm for spending hundreds of millions of dollars on endorsement deals were areas of focus for the government.

Prosecutors showed the court a spreadsheet of investments made in 2021. They included $205 million for FTX’s naming rights to Miami’s NBA arena, $150 million to Major League Baseball, $28.5 million to NBA star Stephen Curry, $50 million to quarterback Tom Brady and his then wife Giselle Bundchen, and $10 million to comedian Larry David. The deals on the spreadsheet amounted to a total of $1.13 billion.

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Nishad Singh, who was FTX’s director of engineering, testified that the $300 million outlay on investment firm K5 was among the most troubling. He said Bankman-Fried sent him a term sheet detailing hundreds of millions of dollars of bonuses to owners Michael Kives and Bryan Baum. That followed a K5 dinner Bankman-Fried attended alongside Hillary Clinton, Katy Perry, Orlando Bloom, Leonardo DiCaprio, and Kris and Kylie Jenner.

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Singh said he told Bankman-Fried he was very concerned and that the K5 investment was “value extractive.” He also said he asked Bankman-Fried if the investment was made with his money or FTX’s. The spreadsheet showed it came from Alameda.

In a motion to dismiss a complaint in bankruptcy court against K5, the firm’s lawyers said the “plaintiffs attempt to make Kives and Baum complicit in SBF’s wrongdoing has no basis in fact.”

Government exhibit in the case against former FTX CEO Sam Bankman-Fried.

Source: SDNY

Leaked audio

In an all-hands meeting on the evening of Nov. 9, 2022, Alameda Research employees gathered in a circle to listen to Ellison, the CEO, who was sitting on a beanbag. She told staffers about Alameda’s borrowing from FTX, and said the exchange now had a “shortfall of user funds.”

Christian Drappi, a former software engineer at Alameda, was one of the 15 people in attendance at the meeting in the Hong Kong office. Ten others joined via video from the Bahamas.

In his testimony, Drappi described Ellison’s demeanor that night as “sunken.” He said she was “kinda slouching” and “did not display confident body language.”

In the recording of the Ellison meeting that was played for the jury, Drappi can be heard asking about FTX’s plan to pay back customers. Ellison said the company would raise money to fill the hole. 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.”

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

Encrypted messages

Of the hundreds of items entered into evidence, a bank of messages on encrypted app Signal paint perhaps the clearest picture of Bankman-Fried’s alleged crimes.

One thread, dubbed “small group chat,” included 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; and former FTX executive Ryan Salame.

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

Source: SDNY

Early in the morning on Nov. 7, the defendant put forth some “potential todos,” including halting withdrawals, sending a “confident tweet thread” and reaching out to firms such as Silverlake, Sequoia, and Apollo as they “wake up over the next few hours” to try to shore up cash.

Later that morning, 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

The next day, Nov. 8, Ellison appealed to the group for help on optics and public messaging.

She wrote, “multiple people internally asking me whether they should continue to make statements to external parties like ‘Alameda is solvent.’ should i suggest they stall instead? just stall on responding to their messages? or what?”

That’s the same day FTX issued a pause on all customer withdrawals. The price of FTT, FTX’s native token, plummeted by over 75%. Out of options, Bankman-Fried turned to Binance CEO Changpeng Zhao, who announced he’d signed a nonbinding letter of intent to acquire FTX.

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.”

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.”

As the grand scheme collapsed months later, 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

Deliberations begin in Sam Bankman-Fried fraud trial: CNBC Crypto World

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Italian DC fast charger maker Alpitronic enters the US market [video]

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Italian DC fast charger maker Alpitronic enters the US market [video]

Electrek‘s Seth Weintraub went to Alpitronic America’s new HQ to speak with CEO Mike Doucleff about its plans to roll out its ultra-fast chargers across the US.

Bolzano, Italy-based Alpitronic was founded in 2009, and it specializes in the development and production of DC fast chargers. The global company’s best-known product line is the Hypercharger, an ultra-fast EV charging station that can deliver charging power from 50 kW to 400 kW, depending on the model.

Alpitronic Americas recently announced an agreement with Mercedes-Benz High-Power Charging to become the first DC fast-charging network to deploy Hypercharger 400 units at scale in the US.

Alpitronics Americas’ new headquarters’ 68,000-square-foot office and industrial space in Charlotte, North Carolina, includes a diagnostics laboratory and repair center, a spare parts warehouse, a training center, and space for as many as 300 employees.

The Bolzano, Italy-based company’s Hyperchargers achieve, on average, an efficiency rate greater than 97.5%, and that its repair and service network can service chargers anywhere in the US.

Alpitronic cofounder and CEO Philipp Senoner said, “As a natural part of Alpitronic’s growth, we are anxious to expand our industry-leading Hypercharger network from Europe, where we are market-share leader, to North America. We are pleased with the talent we are finding in North Carolina and look forward to setting a new standard for the EV charging network in the US.”

Alpitronic chargers support all EV brands. Pre-production units have been tested publicly in Rock Hill, SC, and Portland, OR. The first US-built, public chargers are expected to be installed and available in October.

Seth and Mike Doucleff discuss what Aliptronic’s main driver was to come to the US, what attracted them to Charlotte, and what the company thinks the future of DC fast chargers is in the US, among other things. Their conversation begins at 00:41 on the Electrek podcast below:


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Volvo CE rolls out some new hotness at Volvo Days 2024 [part 1]

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Volvo CE rolls out some new hotness at Volvo Days 2024 [part 1]

This week, Volvo Group held its once-every-three-years “Volvo Days” event in Shippensburg, PA for the first time since the pandemic, showing off tons (literally!) of new equipment, new trucks, and new concepts – including a couple of “world’s first” debuts.

What is Volvo Days? That might require a bit of background …

The heavy equipment world operates on something of a three-year cycle. ConExpo, the industry’s biggest trade show, happens every three years. That sets the tone, with companies showing off all their hottest concepts and forward-thinking new projects. That’s year 1. Year 2 is typically when shows like Volvo Days typically take place, with manufacturers rolling out the production versions of the concepts they showed at ConExpo and inviting a mix of dealers, end-users, and journalists in to try out some of what got showed at ConExpo. Year 3 is more insular, with the manufacturers bringing in salespeople to get them trained on new products and prepare them for how to talk about what the company is planning to show at next year’s ConExpo.

ConExpo was last year, so this year we get Volvo Days – for the first time since 2018, in fact, since the 2021 event was canceled due to COVID. That makes this the first Volvo Days in six years … and expectations were high.

The kickoff

Volvo Days, night 1; kickoff.

Volvo kicked off the week’s events with a drone display highlighting the company’s construction equipment history – appropriate, given that the event was held at Volvo CE’s Pennsylvania engineering and production campus. The drone show was followed by a genuinely impressive, highly choreographed equipment ballet that featured new electric equipment shown for the first time in North America, as well as the new-for-2025 Volvo VNL and Mack MD Electric trucks doing some heavy lifting and hauling.

The show lasted well over thirty minutes, and it was impossible for me to keep track of everything that was happening, but you can get a sense of it in the video (above).

Compact electric equipment

Volvo had its new, in-production L20/120 Electric wheel loader and ECR25 Electric excavator front and center in its reception center, along with information highlighting their competitive advantages in the compact equipment space.

The best thing about Volvo Days, however, isn’t that they have interesting vehicles on display – it’s the fact that nearly every one of those interesting vehicles is available to experience first hand … including the 30-ton EC230 Electric excavator.

Volvo Electric excavators with Steelwrist; photo by the author.

All the electric excavators (even the mini) were incredibly smooth and quiet, with noticeably fewer vibrations than their diesel counterparts … which we also got to play with.

That said, I’m not a “real” equipment operator, which means my seat of the pants impressions are probably worth less than those of the people who use these things every day. That’s why I was glad to have Mike Switzer, my co-host on The Heavy Equipment Podcast, along for the ride.

“It’s really impressive, and the articulation on the Steelwrist is incredible,” Mike told me, after hopping out of the demo EC230. “I’ve seen it before, obviously, but I’ve never had a chance to use it. I think every municipality needs to take a look at that.”

Electric compaction

Volvo electric compactors; image by the author.

Over on the compaction side, Volvo had its DD25 Electric vibrating drum compactor on display – where the all-electric tandem roller was joined by two all-new siblings being shown off for the first time ever: a pre-production DD15 Electric “mini” compactor prototype seemingly designed for sidewalks and driveways, and the TC13 Electric trench compactor.

The TC13 Electric is designed as a walk-behind unit that uses its heavy batteries to provide the compaction mass – but those heavy batteries won’t get depleted in the hour or so of operation that most trench compactors see on a busy day. To keep the little TC13 useful throughout the day, Volvo gave it a pair of 110 and 220V outlets.

TC13 power outlets; photo by the author.

Specs weren’t released, but Volvo’s compaction brand manager claimed those outlets were more than capable of keeping the rest of the job site’s battery-operated tools running all day long, and even packed enough juice (in a pinch) to power a portable office, table saw, or drill press.

“Did you see his face when I asked if it could run an arc welder?” asked Mike, smiling. “He said, ‘It’s not something we’d advise,’ but you could tell he liked that question.”

Yeah, he did!

Electrek’s Take

Jo Borrás looking for prizes; photo by Jefferson Yin.

Somewhere around the twenty minute mark of the “equipment ballet” show, something broke inside my brain. I think it was the sparks flying off the bucket when the L20 Electric scooped up a few thousand pounds of gravel and sand at full speed, scraping its bucket along the ground. Maybe it was the hydrogen-powered articulated loader, or the open bar.

Regardless, one thing that was made very clear at Volvo Days ’24 is that, while other companies are still developing the initial entries into the electric commercial vehicle space, Volvo has not just a full line of products – but an expanding line of products, with the company entering new spaces specifically because of the unique advantages electric offers.

As Volvo’s North American President, Scott Young, explains, the future is electric, and Volvo’s vision for the future has the company firmly in the leadership position … but more on that in part 2.

ORIGINAL CONTENT FROM ELECTREK.

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Lucid opens Detroit hub to tap into US legacy auto talent pool

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Lucid opens Detroit hub to tap into US legacy auto talent pool

EV maker Lucid Motors (LCID) opened its new office in Detroit this week, hoping to attract engineers from “one of the biggest talent pools in the Western world.”

Lucid sets up shop in Detroit for engineering talent

Lucid celebrated the grand opening of its new office in Southfield, Michigan, roughly 15 miles northwest of Detroit.

At its new office, Lucid is “growing our team of hardware engineers, R&D, operations, and more” as it looks toward its next growth phase.

“We need talent quickly, and that’s what this hub is about,” Eric Bach, Lucid’s senior vice and chief engineer, said at an event at the company’s new office.

Bach explained that as Ford and GM take talent from EV startups like Lucid, Tesla, and Rivian, Lucid looks to attract traditional engineering skills that are central to Detroit.

The company has already hired 24 engineers at its new hub, according to Lucid’s vice president of vehicle engineering, Charles Wildig told Automotive News. However, it plans to hire another 30 by the end of the year while growing its engineering team “exponentially.”

Lucid-Gravity-Air-EVs
Lucid Air (left) and Gravity SUV (right) models (Source: Lucid)

Wildig said that Lucid gets double the number of applications for every engineering position in Michigan compared to California.

“Michigan is one of the biggest talent pools in the Western world for automotive,” he said, adding, “It’s very difficult to find that kind of talent in California.”

Lucid-Gravity-SUV
Lucid Gravity SUV (Source: Lucid)

The next growth phase

Lucid is adding engineering talent as it prepares to launch its first electric SUV, the Gravity, later this year.

Last week, during its Technology & Manufacturing Day, Lucid revealed that the Gravity will feature an NACS port in 2025, unlocking access to over 15,000 Tesla superchargers.

Lucid also showcased how the electric SUV and advanced future technology will enable “mass savings.”

CEO Peter Rawlinson claims Lucid is already “years ahead of the competition” but promises new tech, like its next-gen “Atlas” drive units, will be even more advanced.

Lucid-tech-advantage
(Source: Lucid Motors)

The drive unit’s smaller, more efficient design will unlock more performance at a lower cost. The next-gen tech will power Lucid’s new midsize EV platform. Lucid teased its upcoming midsize electric SUV during the event, due out in 2026.

The midsize SUV will be the first to launch on Lucid’s new lower-cost platform. Last month, the company confirmed to Electrek that it plans to launch three lower-cost models on the midsize platform.

Lucid-teases-midsize-SUV
Lucid midsize electric SUV teaser image (Source: Lucid)

Lucid is already backing up its claim of being “years ahead,” with the 2025 Air Pure being the most energy-efficient mass-production car ever, with a record 146 MPGe and 5 miles per kWh efficiency. The cheapest trim starts at $71,400.

The Lucid Air is the longest-range EV on the market, with some models offering over 500 miles range.

Lucid-most-energy-efficient-EV
(Source: Lucid Motors)

Lucid’s Gravity electric SUV will launch later this year, starting at under $80,000. The midsize electric SUV is expected to launch in 2026, starting at around $50,000

Bach said Lucid is in talks with “many” automakers about sourcing its EV powertrain tech. The company already secured a deal with Aston Martin to provide EV battery and powertrain tech last June.

Because of its compact design, the powertrain can easily fit into rivals’ systems. “That means everybody can just plug and play technically,” Bach said. He added, “We are open for business,” and Lucid wants to “embrace” the competition.

Source: Automotive News, Lucid Motors

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