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Sam Bankman-Fried stands as forewoman reads the verdict to the court.

Artist: Elizabeth Williams

Just before 8 p.m. on Thursday, 12 jurors found Sam Bankman-Fried guilty of all seven counts against him. You could have heard a pin drop in the courtroom as the forewoman repeated the word “guilty” seven times in a row into a handheld microphone.

Bankman-Fried stood facing the jury box, neither flinching nor betraying any sort of emotion. In less than three hours of deliberation, jurors had swiftly come to the conclusion that Bankman-Fried had defrauded FTX customers, as well as lenders to its sister hedge fund, Alameda Research.

Bankman-Fried’s criminal trial was held in room 26b on the top floor of 500 Pearl Street, one of two federal courthouses of the Southern District of New York. The building fast became the de facto headquarters for many journalists over the last five weeks.

The courthouse had a few hard-and-fast rules, and a number of looser guidelines depending on who was on duty.

The big non-negotiable was no electronics in the courthouse. There were certain workarounds, like having a seat in the media room, which required your publication to have covered around half a dozen SDNY cases. There, you have access to electricity and internet, an absolute game changer when every second counts. (CNBC put out a note requesting access ahead of the trial — an email which was ultimately ignored.)

The second workaround involved borrowing the resources of CNBC’s capable and kind television photographers. Stashing a backpack with electronics in a car parked on Pearl Street made it possible to sprint from the courtroom to the car, then to a nearby park bench, where this CNBC writer could type and dispatch notes to editors in San Francisco. A 65-watt power bank compatible with a USB-C laptop charging cord proved essential to the operation.

As the days grew colder, it was essential to have a seat in a car to keep your fingers warm. Every exit to file a report included another breakneck trip through security, in a sort of run, rinse, repeat cycle — security, courtroom, exit, photographer’s car to file, back up through security, over and over again. Running shoes were part of the daily uniform.

If you had neither a seat in the media room nor a trusted colleague with whom to stash your electronics, the alternative was opting into the court’s coat check system, which looks like a scene from a Vegas casino. Depending upon the number of electronics you have, you get a different colored poker chip.

For CNBC, the chip was always black, and this writer was able to sprint past the coat check and get up to the courtroom faster than people who had to check their belongings. It also made for a swifter exit not having to wait in line to retrieve checked items.

No electronics inside the courthouse meant relying on a steady stash of notebooks, pens, and highlighters. A non-smart watch was another must-have, as were easily hidden snacks like Starbursts and mini chocolate chip Clif bars.

And perhaps second in importance only to pen and paper was an opaque water bottle that could hold coffee — tantamount to illicit contraband in the courthouse. (Rumor had it that a spilled coffee resulted in a $100,000 expense to replace the portion of carpet affected by the mishap.)

Another essential hack was keeping all supplies in a clear Auburn University totebag, an accessory that garnered a lot of attention from one security guard who was a Georgia fan. The bag’s transparency expedited the process of getting through security in a game where every second made a difference.

A cafe on the 8th floor offered the cheapest quality lunch you can find in downtown Manhattan, including discounted prices on candy like M&Ms and Starbursts.

In the courtroom, only 21 seats were reserved for the public, including journalists. Some days, it was easier to land a spot than others. On the eve of Bankman-Fried’s second day of testimony before the jury, for example, the line began at 10 p.m. the night before, and the 21st seat was taken by around 3 a.m. the following morning.

CNBC correspondent MacKenzie Sigalos reporting on the Sam Bankman-Fried trial from outside the SDNY courthouse at 500 Pearl Street in downtown Manhattan.

Dan Mangan

Over time, some long-haul reporters grew to prefer the overflow courtrooms on the 23rd and 24th floors. In overflow, events from the proceedings were live streamed on a series of monitors, and unlike the room where it was all going down, you had a bit more freedom to sometimes eat and drink whatever you wanted, to (reportedly) vape and take side bets on government objection tallies, and critically, to laugh out loud when testimony seemed especially evasive or outrageous.

Overflow contained a veritable who’s who of journalists, actors, bestselling authors, and white-collar criminals.

During the first week of the trial, Martin Shkreli, the so-called “Pharma bro,” who was sent to federal prison for hiking the price of a life-saving drug by around 5,000% overnight, showed up to watch.

Across the multiple days of Bankman-Fried’s testimony, CNBC correspondent Andrew Ross-Sorkin popped into overflow after he wrapped his morning show, as did the defendant’s recent biographer, Michael Lewis, who always had on a pair of HOKA sneakers — off-white from wear, with neon-peach colored laces and bright yellow soles.

Lewis would often slip in at the last minute, queueing in the security line around 9:26 a.m. one morning, allowing just a few minutes before the trial was due to resume. Intentionally arriving late is a pro move. If you aren’t going to be one of the first 21 people to arrive, the goal is to cut it as close as possible to the start of court. Staying with your electronics allowed you to optimize for time writing while concurrently skipping the long wait in line. One journalist compared the just-in-time strategy to an Indiana Jones-style entrance.

Lewis, whose book about Bankman-Fried and his inner circle was released on the first day of trial, was often swarmed in the elevator and on breaks from testimony by other writers keen for a moment with the author.

Then there was Ben McKenzie, an actor who first rose to stardom with his leading role on the long-running show, The O.C. McKenzie, who has had a lengthy acting career since, recently ventured into the world of crypto reporting with a book he co-wrote, “Easy Money: Cryptocurrency, Casino Capitalism, and the Golden Age of Fraud.”

Attorneys and interested civilians also filled the pews of overflow.

This motley crew of characters became close over the course of five weeks. Cut off from electronics and connections to the outside world, an inevitable bond of camaraderie formed. These were the people who helped you fill a missing name or finish a quote when you had 20 seconds in the elevator before sprinting out to grab your laptop.

Sam Bankman-Fried’s parents, seated to the left, react to the verdict. U.S. Attorney Damian Williams is seated to the far right.

Artist: Elizabeth Williams

The moment of truth

Back in the courtroom on Thursday evening, the anticipation was palpable in room 26b on the top floor of 500 Pearl Street. Every pew was filled with the same faces that had crowded the courthouse since the trial began on Oct. 3 — a group comprised of some of the top names in business and crypto news media.

Most in the gallery were dressed in multiple layers of fleece-lined jackets, sweaters, and a mix of jeans and sweatpants. Any hint of formal dress was gone by the second week of court, in part thanks to the weather. Over the course of the monthlong trial, the temperature had plunged from 79 degrees Fahrenheit to 42 degrees on the evening the verdict was read.

But in Judge Kaplan’s courtroom that evening, there was no way of knowing what it was like outside. Typically, during the day, the ceiling-high windows along the perimeter of the courtroom would offer unrivaled views over the Manhattan skyline. But that night, opaque white blinds obscured the world beyond the domain of the 78-year-old judge.

The jury had been sent to deliberate at 3:15 p.m. and had been given an hour to eat pizza for dinner, courtesy of the government. By 7:30 p.m., it was unclear to the room of writers whether the jury would reach a unanimous decision by the deadline of 8 p.m., when the last security shift ended. They’d had less than four hours to consider the evidence in a trial that had run for a month and consisted of nearly 20 witnesses and hundreds of exhibits.

Then, at 7:37 p.m., attorneys for both the government and the defense rushed back as the clerk announced, “The jury has reached a verdict.” A minute later, jurors were back in their seats.

FTX founder Sam Bankman-Fried is questioned by prosecutor Danielle Sassoon (not seen) during his fraud trial over the collapse of the bankrupt cryptocurrency exchange at federal court in New York City, U.S., October 31, 2023 in this courtroom sketch. 

Jane Rosenberg | Reuters

All eyes were trained on Bankman-Fried, as well his parents, Joe Bankman and Barbara Fried, who sat clutching one another in the second row. Neither they nor their son shed a tear over the course of the proceedings, in what appeared to be stoicism or perhaps a reflection of an emotional callus built up over months of fighting against regulators, prosecutors, the FTX bankruptcy estate, and paparazzi.

A scene in the security line outside the courthouse one morning was typical. A photographer, standing outside tinted glass designed to conceal the faces within, held a portable light above his head as he stalked Bankman-Fried’s parents along a thirty-foot stretch. Over the course of ten minutes, he inched along the line with them, flashing his light hundreds of times to capture the perfect shot of two people at the lowest point in their lives.

Joseph Bankman and Barbara Fried arrive for the trial of their son, former FTX Chief Executive Sam Bankman-Fried, who is facing fraud charges over the collapse of the bankrupt cryptocurrency exchange, at Federal Court in New York City, U.S., October 26, 2023. 

Brendan Mcdermid | Reuters

The defendant wore a purple tie with his black suit, which hung loose on his gaunt frame. His face, drawn, made his ears stand out a bit more than usual, and his iconic curls had returned. The fresh haircut he donned during the first week of trial, reportedly given to him by a fellow inmate, had lost its form and given way to the wild tendrils now synonymous with the man once regaled as the king of crypto.

Kaplan instructed Bankman-Fried to stand and face the jury box as the verdicts were read. The only other person standing was the forewoman.

By 7:47 p.m., Bankman-Fried’s fate had been delivered. Bankman-Fried’s parents hunched over and buried their head in their hands, but true to form, they stopped short of crying.

Immediately after the guilty verdicts, the defense’s principal trial attorney, Mark Cohen, asked for a poll of the jurors. A courtroom official went juror by juror, asking each if their verdict was read properly. Each said yes.

Judge Kaplan thanked the jurors for their service, adding a flourish of personal anecdotes to his final address to the jury. The twelve civilians stared blankly as the judge thanked them for paying attention and for learning the inner workings of the crypto industry.

The jurors were escorted out. Judge Kaplan congratulated attorneys on both sides on having done a “good job,” then departed himself.

Bankman-Fried, his parents, and a few dozen reporters lingered behind in the courtroom.

Bankman-Fried had never sat back down after the judge left. His gaze, angled downward, remained facing the judge’s bench. He stood flanked by attorney Christian Everdell on his left and Cohen on his right. Cohen, whispering into his ear, occasionally placed his left hand on Sam’s back as a sign of support.

It was silent in 26b. Writers stood and gathered toward the center aisle leading to the bar separating the defendant’s table and jury box from the gallery. Standing at the back of the crowd, people gathered as if behind a prophet, waiting for a word.

Around 8:02 p.m., Bankman-Fried, speechless, began to walk to a room just adjacent to the main court. His parents were standing at the front of the center aisle, waiting for their son.

What's next after Sam Bankman-Fried's conviction in fraud trial: CNBC Crypto World

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Elon Musk Tapped to Lead New ‘DOGE’ Department—Despite the Government Already Having One for Efficiency

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Elon Musk Tapped to Lead New ‘DOGE’ Department—Despite the Government Already Having One for Efficiency

Tesla CEO Elon Musk is to officially join Trump’s administration as the co-head of the new US Department of Government Efficiency – a second federal department with the goal of making government spending more efficient.

You can’t get more ironic than that.

Throughout the elections, Musk, who is already CEO of Tesla, and SpaceX, a well as the defacto head of X, xAI, Neuralink, and the Boring Company, has been floating the idea to add to his workload by joining the Trump’s administration to lead a new department aimed at making the federal government more efficient.

He has been calling it the “Department of Government Efficiency”, which spells out ‘DOGE’, a meme that Musk appears to enjoy.

Well, now Trump appears to want to be going through with this idea.

He announced the new department and Musk as head, along with Vivek Ramaswamy, in a statement today:

I am pleased to announce that the Great Elon Musk, working in conjunction with American Patriot Vivek Ramaswamy, will lead the Department of Government Efficiency (“DOGE”). Together, these two wonderful Americans will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies – Essential to the “Save America” Movement. “This will send shockwaves through the system, and anyone involved in Government waste, which is a lot of people!” stated Mr. Musk.

What’s most ironic is that there’s already a federal department with the goal of cutting government waste and ensuring efficiency: the Government Accountability Office (GAO).

The GAO’s main objectives are:

  • auditing agency operations to determine whether federal funds are being spent efficiently and effectively;
  • investigating allegations of illegal and improper activities;
  • reporting on how well government programs and policies are meeting their objectives;
  • performing policy analyses and outlining options for congressional consideration;
  • issuing legal decisions and opinions;
  • advising Congress and the heads of executive agencies about ways to make government more efficient and effective

It sounds similar to what Musk described when talking about his DOGE, but Trump hasn’t gone into many details other than it will “cut waste.”

He also has a confusing message as he compares the initiative, which is supposed to cut government spending, to “The Manhattan project”, a massive and expensive government project.

Trump said that DOGE will help the government “drive large scale structural reform”:

It will become, potentially, “The Manhattan Project” of our time. Republican politicians have dreamed about the objectives of “DOGE” for a very long time. To drive this kind of drastic change, the Department of Government Efficiency will provide advice and guidance from outside of Government, and will partner with the White House and Office of Management & Budget to drive large scale structural reform, and create an entrepreneurial approach to Government never seen before.

The statement also noted that DOGE will only operate until July 4, 2026.

Musk has previously claimed that he could cut at least $2 trillion dollars of the $6.5 trillion dollar US federal budget.

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Oil could plunge to $40 in 2025 if OPEC unwinds voluntary production cuts, analysts say

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Oil could plunge to  in 2025 if OPEC unwinds voluntary production cuts, analysts say

A pump jack in Midland, Texas, US, on Thursday, Oct. 3, 2024. 

Anthony Prieto | Bloomberg | Getty Images

Oil prices may see a drastic fall in the event that oil alliance OPEC+ unwinds its existing output cuts, said market watchers who are predicting a bearish year ahead for crude.

“There is more fear about 2025’s oil prices than there has been since years — any year I can remember, since the Arab Spring,” said Tom Kloza, global head of energy analysis at OPIS, an oil price reporting agency.

“You could get down to $30 or $40 a barrel if OPEC unwound and didn’t have any kind of real agreement to rein in production. They’ve seen their market share really dwindle through the years,” Kloza added.

A decline to $40 a barrel would mean around a 40% erasure of current crude prices. Global benchmark Brent is currently trading at $72 a barrel, while U.S. West Texas Intermediate futures are around $68 per barrel.

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Oil prices year-to-date

Given that oil demand growth next year probably won’t be much more than 1 million barrels a day, a full unwinding of OPEC+ supply cuts in 2025 would “undoubtedly see a very steep slide in crude prices, possibly toward $40 a barrel,” Henning Gloystein, head of energy, climate and resources at Eurasia Group, told CNBC. 

Similarly, MST Marquee’s senior energy analyst Saul Kavonic posited that should OPEC+ unwind cuts without regard to demand, it would “effectively amount to a price war over market share that could send oil to lows not seen since Covid.”

However, the alliance is more likely to opt for a gradual unwinding early next year, compared to a full scale and immediate one, the analysts said.

Should the producers group proceed with their production plan, the market surplus could nearly double.

Martoccia Francesco

Energy strategist at Citi

The oil cartel has been exercising discipline in maintaining its voluntary output cuts, to the point of extending them.

In September, OPEC+ postponed plans to begin gradually rolling back on the 2.2 million barrels per day of voluntary cuts by two months in an effort to stem the slide of oil prices. The 2.2 million bpd cut, which was implemented over the second and third quarters, had been due to expire at the end of September. 

At the start of this month, the oil cartel again decided to delay the planned oil output increase by another month to the end of December.

Oil prices have been weighed by a sluggish post-Covid recovery in demand from China, the world’s second-largest economy and leading crude oil importer. In its monthly report released Tuesday, OPEC lowered its 2025 global oil demand growth forecast from 1.6 million barrels per day to 1.5 million barrels per day.

The pressured prices were also conflagrated by a perceivably oversupplied market, especially as key oil producers outside the OPEC alliance like the U.S., Canada, Guyana and Brazil are also planning to add supply, Gloystein highlighted.

Bearish year ahead for oil

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Have you had a ride in a driverless vehicle?

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Have you had a ride in a driverless vehicle?

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