As Sam Bankman-Fried awaits prison sentence, FTX customers await a surprise: full repayment
Government exhibit in the case against former FTX CEO Sam Bankman-Fried.
Source: SDNY
As Sam Bankman-Fried prepares to face sentencing next month for his criminal fraud conviction tied to the epic collapse of FTX in 2022, former customers of the crypto exchange have reasons to believe they could actually recoup their money.
Bankman-Fried, who could spend the rest of his life behind bars, was found guilty in November on seven criminal counts after roughly $10 billion in customer funds from his company went missing. Some of that money went to pay for Bankman-Fried’s lavish lifestyle, but much of it went towards other investments that have, of late, appreciated dramatically in value.
Lawyers representing the bankruptcy estate of FTX told a judge in Delaware last week that they expect to fully repay customers and creditors with legitimate claims. Bankruptcy attorney Andrew Dietderich, who works with FTX’s new leadership team, said “there is still a great amount of work and risk” ahead in getting all the money back to clients, but that the team has a “strategy to achieve it.”
It’s a welcome development for the many thousands of customers (reportedly up to a million) who collectively lost billions of dollars in FTX’s collapse 15 months ago, when the crypto exchange spiraled into bankruptcy in a matter of days. Given the lightly regulated and unsecured nature of FTX — and the crypto industry at large — those clients faced the real possibility that the vast majority of their money had evaporated. Plenty of failed hedge funds and lenders lost virtually everything during the 2022 crypto winter.
Bankman-Fried never believed his company’s situation was that dire.
Even as regulators and federal prosecutors unearthed evidence showing that the 31-year-old entrepreneur and his top lieutenants had been pilfering billions of dollars from customer wallets for years, Bankman-Fried insisted that all the money was still somehow accessible.
“FTX US remains fully solvent,” Bankman-Fried wrote in a Substack post on Jan. 12, 2023, while he was under house arrest at his parents’ home in Palo Alto, California. He said the exchange “should be able to return all customers’ funds.”
In some ways, his narrative appears to be proving true.
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
For months, FTX’s new CEO, John Ray III, and his team of restructuring advisors have been clawing back cash, luxury property, and crypto, as well as tracking down missing assets. They’ve already collected more than $7 billion, and that doesn’t include valuables like $26 million in gifts and property to Bankman-Fried’s parents, or the $700 million handed over to K5 Global and founder Michael Kives, who invested FTX cash in companies like SpaceX. Some of those investments have seen a precipitous rise in value.
FTX had been negotiating with bidders about a potential reboot of the company, but those efforts were scrapped last month.
Braden Perry, who was once a senior trial lawyer for the Commodity Futures Trading Commission, FTX’s only official U.S. regulator, told CNBC that the decision to repay users in full came after “the abandonment of efforts to restart the FTX crypto exchange,” in favor of “a focus on liquidating assets to make customers whole.”
Getting actual money back in the hands of customers still remains a challenge. While a lot of the value has been recouped and more is to come, divvying up large amounts of cash is a complex process in bankruptcies, particularly when so much of the money is in non-traditional and illiquid assets.
Even Ray was doubtful at the beginning of the process, noting in late 2022 that, “At the end of the day, we’re not going to be able to recover all the losses here.”
‘Sam coins’ soar
What Ray wasn’t banking on was a huge market rebound. When he made those remarks, crypto was mired in a bear market, with bitcoin trading at around $16,000. It’s now above $47,000.
In September, the bankruptcy team released a status report showing that FTX had $3.4 billion worth of digital assets, with over $1.1 billion coming from its Solana investment.
Solana fits into a category of so-called “Sam coins,” a group that also includes Serum, a token created and promoted by FTX and sister hedge fund Alameda Research. After the dust settled from FTX’s bankruptcy, Solana saw a huge run-up in its price, and it continued to rally after the September report. Since the end of that month, it’s spiked fivefold.
Meanwhile, FTX’s bitcoin stash, which was worth $560 million at the time of the September report, is today valued north of $1 billion.
Bankman-Fried’s investments weren’t limited to crypto. He also used client money to back startups like Anthropic, the artificial intelligence company founded by ex-OpenAI employees. FTX invested $500 million in Anthropic in 2021, before the generative AI boom. Anthropic’s valuation hit $18 billion in December 2023, which would value FTX’s roughly 8% stake at about $1.4 billion.
During Bankman-Fried’s criminal trial in New York, Judge Lewis Kaplan denied the defense’s request that it be permitted to say that FTX’s investment in Anthropic was a smart bet. The bankruptcy estate of FTX has been looking to sell its Anthropic stake, according to a court filing this month.
Sam Bankman-Fried stands as forewoman reads the verdict to the court.
Artist: Elizabeth Williams
In his biography on Bankman-Fried titled “Going Infinite,” Michael Lewis said he was told by an investor interested in bidding for the venture portfolio that “if it was sold intelligently, it should go for at least $2 billion.” Lewis, who published his book late last year, wrote that, based on his back-of-the-envelope math, the $7.3 billion that Ray’s team had come up with didn’t include Serum, some large clawbacks and other venture investments that had appreciated in value.
For FTX customers, being made whole, according to a judge’s ruling, means getting the cash equivalent of what their crypto was worth in November 2022. In other words, they’re not seeing any of the upside of FTX’s investments or being given virtual coins that would allow them to cash out at higher valuations.
Still, some investors have found a way to participate in the FTX’s ongoing odyssey. The market for FTX IOUs lit up last year as it became clear that the bankruptcy estate was cobbling together a lucrative portfolio. One financial firm that had lost around $100 million initially sold its FTX debt for 6 cents on the dollar in a new secondary market out of concern that he may never get a better deal. As of December, those claims were going for more than 70 cents on the dollar.
If customers are eventually made whole, that could play a big role in Bankman-Fried’s appeal, likely following his sentencing, which is set to take place in Brooklyn on March 28. Perry said it could also affect how the judge handles sentencing in the first place.
“Under the federal sentencing guidelines, and even assuming no monetary loss, SBF still faces at least 70 months in prison based on his base level offense, number of victims, sophisticated means, and leadership role,” Perry said.
The massive losses that were originally expected would suggest 30 to years to life, Perry added.
Renato Mariotti, a former prosecutor in the U.S. Justice Department’s Securities and Commodities Fraud Section, told CNBC that judges typically consider the amount of restitution paid to victims at sentencing.
“If the victim is made whole, that is a big plus for the defendant,” said Mariotti. He noted, however, that the extent of the fraud coupled with Bankman-Fried’s false testimony and violation of bond conditions could limit the reduction.
“I usually advise clients to pay restitution before sentencing if at all possible,” Mariotti said.
WATCH: Former SEC Chari discusses Bankman-Fried guilty verdict
Environment
PG&E customers can snag huge incentives on GM Energy charging products through a V2X pilot program
Pacific Gas & Electric Company (PG&E) residential customers can now take advantage of incentives in the thousands off the price of qualifying GM Energy home charging and energy management products. GM has joined PG&E’s vehicle-to-everything (V2X) pilot program, enabling energy customers to bundle their GM Energy systems and eventually get paid to supply excess energy back to their local grid.
While this particular incentive program only applies to certain customers of PG&E, it is big news for the growing segment of home energy management solutions, including energy storage systems, solar panels, and bidirectional EV charging.
GM Energy, the home and commercial charging solutions arm, spun out from Ultium Charge 360 three years ago, is establishing itself as a leader in that segment. In the summer of 2023, GM Energy launched its initial portfolio of Ultium Home products, which consisted of three separate bundles complete with vehicle-to-home (V2H) charging capabilities.
In May of 2024, GM Energy showed off the capabilities of its energy management products by powering an entire mansion using the products and a Chevy Silverado EV. Since then, GM Energy has expanded its business to all 50 United States, giving EV owners nationwide access to its portfolio of energy management products, which also includes two versions of an energy storage system (ESS) called PowerBank, which was introduced last October.
With a growing lineup of home energy management and EV charging solutions, GM Energy is working alongside PG&E to expand its reach by incentivizing those customers to implement said technologies and explore more sustainable solutions. There may also be an option for vehicle-to-grid capabilities, which could be an absolute game-changer in how we use and manage our daily energy.
PG&E customers can save $4,500 on GM Energy charging
GM shared that now that it has joined PG&E’s V2X pilot program, those energy customers in Northern and Central California can take advantage of incentivized pricing on specific charging and power hub products.
Customers who enroll in the Vehicle-to-Everything pilot program can receive up to $4,500 off the price of GM Energy home products, such as its Vehicle-to-Home (V2H) Bundle, which includes a PowerShift EV charger and V2H Enablement Kit or the all-encompassing Home System, which includes bidirectional EV charging plus a GM Energy PowerBank, Home Hub, and Inverter.
GM Energy’s products also currently qualify for federal tax incentives, so PG&E customers can get a robust energy management setup complete with EV charging for upwards of $5,000 off. GM Energy Vice President Wade Sheffer spoke about these savings opportunities:
For Northern California customers looking to take more control of their home energy, this program with PG&E represents a great opportunity. For utilities, legislators, customers and others, this pilot is an opportunity to see the full value of our V2H technology beyond just providing power to a home during power outages. This can be a tool that helps overall grid resiliency and showcases the unique advantages of EVs while, in the future, may even reduce the overall total cost of EV ownership.
In exchange for the incentives, GM Energy and PG&E plan to study charging data from customers to evaluate the potential of bidirectional charging and its ability to support electrical grids by flushing excess energy from those storage devices (EVs, PowerBanks, etc) during peak energy demand.
The goal is to scale bidirectional c,harging installations to more PG&E customers and eventually throughout all of California to demonstrate the energy freedom and financial benefits it can provide to all customers. Mike Delaney, Vice President of utility partnerships and innovation at PG&E also spoke:
PG&E is leading the way to enable vehicle-grid-integration technology creating a path for EVs to power customer homes, ultimately benefiting all Californians. We are proud to continue leading this electric renaissance as we collaborate with automakers and some of the world’s top innovators to pioneer bidirectional charging technology where EVs have the potential to offer greater reliability, resiliency and cost savings.
To begin, the following GM EVs will be eligible for the V2X program, but the American automaker plans to add all 2025 model-year EVs soon:
You can learn more about the PG&E pilot program and bidirectional charging on GM Energy’s website and enroll here. GM also provided more details of the capabilities of its home energy management products in the video below:
Electrek’s take
While this particular incentive program only applies to customers from one energy company in a single state, PG&E is a behemoth in California, and it’s encouraging to see it at least exploring the possibility of bidirectional charging enabling vehicle-to-grid capabilities.
Anyone who will lend an ear has heard me go on and on about how the energy companies should be shaking as more energy management power (and freedom from the grid) is being put into the hands of individual homeowners. I can easily imagine a world where most homeowners have an EV paired with solar panels on their roof and some sort of power bank in their garage. They can charge their vehicle and power their home during peak hours using free energy from the Sun and/or store it to sell back to energy companies via V2G.
Say you’re going out of town for a week and you know you won’t need your car or the energy you’ve gained from solar. Flush it back to the grid when everyone is home from work at night and booting up Netflix, and you’ll get some money back on your monthly bill!
It’s a no-brainer to me, and I see V2G as inevitable. That said, I feel most energy companies will fight tooth and nail to at least slow that transition down to maintain their energy monopolies as long as possible. That’s why it’s refreshing to see a company like PG&E at least open to possibility… especially since it’s an energy company that’s not exactly known for its moral fiber (see Erin Brockovich).
California often serves as a crystal ball into the future for the rest of the US, so this pilot program, albeit small, is a step forward in full-scale integration throughout the state and into additional ones. We must wait and see what the data brings before anything becomes a bonafide standard for energy customers. Still, this program does offer a sweet little taste of a future in which sustainable energy becomes widespread… not because it’s the right thing to do unfortunately, but because it will save everyone money.
Well, maybe not the energy companies, but they will continue to do just fine.
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Environment
Trump tariff threats are pushing Canada’s largest oil producer to break its dependence on the U.S.
The Suncor Energy Refinery is seen during extreme cold weather in Edmonton, AB, Canada, on Feb. 3, 2025.
Artur Widak | Nurphoto | Getty Images
HOUSTON — The deeply integrated North American oil and gas market stands at crossroads, with Canada’s largest oil producer warning that it will diversify its exports away from the United States if President Donald Trump‘s tariff threats do not end.
Alberta Premier Danielle Smith on Wednesday presented two possible futures for the continent. In one, Canada and the U.S. reach an agreement to create “Fortress North America,” with new pipeline capacity built to support 2 million barrels per day in additional exports to the U.S. market, Smith said at the CERAWeek energy conference.
This will support Trump’s “energy dominance” agenda, Smith said, allowing the U.S. to increase its exports to the global market by backfilling those barrels with imported oil from a neighbor and close ally. It will maintain low consumer prices in the U.S., she said, which is also part of the agenda Trump campaigned on.
Alberta wants to supply the U.S. with the energy it needs to win the race against China to achieve dominance in artificial intelligence, Smith said. “I don’t think any of us want to see a communist, totalitarian regime become a world, global leader in AI,” the premier said.
In the other future, Trump continues to wage his trade war against Canada and Alberta starts looking for oil and gas customers beyond the U.S., Smith said.
Canada is the fourth largest oil producer in the world and Alberta is the country’s biggest producer. Some 97% of the country’s 4 million bpd of oil exports went to the U.S. in 2023 with several European nations and Hong Kong taking the remainder, according to Canada’s energy regulator. Alberta supplied 87% of the oil exported from Canada to the U.S. in 2023.
“There are at least six or seven projects that are emerging in Canada in the event we’re not able to come to a partnership agreement with the U.S.,” Smith said.
The uncertainty caused by Trump’s tariff threats has already forced Alberta to start “looking at more opportunities to get more barrels off our borders besides the United States,” provincial energy minister Brian Jean said Tuesday.
Alberta is in active discussions with South Korea, Japan and European nations about shipping oil exports to those countries, the energy minister said. “The truth is we’re looking in every direction right now except the United States in relation to our priorities,” Jean said.
Canada looks to Europe, Asia
Trump’s tariffs have roiled financial markets and caused confusion among investors over the past week. The president on Wednesday imposed 25% tariffs on steel and aluminum imports from Canada. He has paused until April 2 penalties on Canadian oil and gas as well as duties on other goods that are compliant with the trade agreement that governs North America.
The Trump administration has not provided clarity on how much of Canada’s energy exports to the U.S. conform to the trade agreement. Oil and gas that is not compliant would face a 10% tariff. U.S. Energy Secretary Chris Wright declined to provide details when asked Monday by CNBC.
Smith said Wednesday that Canadian oil producers are busy filling out paperwork to ensure that their exports to the U.S. are compliant.
“There was a bit of a paperwork issue that our companies had,” Smith said. “There was no reason to register, and so now there is. I would imagine that they’ve all called their lawyers and they’re in compliance. I wouldn’t expect very much of our oil and gas is tariffed at all.”
But it is unclear whether Trump will proceed with tariffs when his pause expires on April 2. Wright said Monday a deal with Canada that avoids tariffs on oil, gas and other energy is “certainly is possible” but “it’s too early to say.”
“We can get to no tariffs or very low tariffs but it’s got to be reciprocal,” Wright said in an interview with CNBC’s Brian Sullivan.
It will take time for Alberta to pivot to markets beyond the U.S. if the tariffs do go into effect. Nearly all the pipelines in Canada run south to the U.S. Canada only has one pipeline stretching from Alberta to the country’s West Coast in British Columbia, providing access to Asian markets. There are no pipelines that run from Alberta to the country’s East Coast.
Smith said Canada is looking at three different pipeline proposals to its West Coast, at least one pipeline into the Northwest Territories, one into Manitoba, one to the Hudson Bay, and one into Eastern Canada.
“Those are conversations we were not having three months ago,” Jean said of the pipelines. But it took 12 years for Canada to expand its Trans Mountain Pipeline that connects to the country’s West Coast.
Alberta is not interested in taking a page from Ontario’s playbook, Jean said Tuesday. Premier Doug Ford imposed a 25% surcharge on electricity exported to the U.S. in response to Trump’s tariffs. He later suspended the penalty after the U.S. agreed to resume talks.
“We don’t believe that that this is the right way to do it,” Jean said of Alberta’s position. “We want to deescalate the situation.”
Canada has presented the U.S. with several options, the Alberta energy minister said. Jean declined to provide specifics, but he said the Trump administration needs a strong strategic petroleum reserve to achieve its goal of energy dominance.
“It also means that they have to be able to continue to get a good steady supply of product from Canada,” he said.
If the tariffs go do into effect, they will hurt both Canadians and Americans, particularly people who cannot afford a price increase, he said. The price hike will be split “fairly evenly” between U.S. customers and producers in Canada, he said.
“It’s going to be felt by all parties and frankly there’s many people right now […] that can’t afford it,” he said. “We need to think about those people because they’re the less fortunate that truly have no other choice but to buy fuel.”
Jean took a swipe at Trump’s repeated calls for Canada to become the 51st state.
“As long as we’re in charge, we don’t mind,” Jean said. “But the truth is the Republicans would never be elected again.”
Toyota’s first electric SUV is getting a major overhaul. The new bZ4X now has a bigger battery for more range, faster charging, dedicated EV features, a stylish facelift, and much more. Here’s our first look at the new Toyota bZ4X.
Toyota unveils new bZ4X with significant improvements
The bZ4X launched in 2022 as Toyota’s first fully electric SUV. Although it was expected to rival the Tesla Model Y and other top-selling electric SUVs, the bZ4X failed to live up to the task.
“I think it’s fair to say that we experienced a few bumps in the road during the launch,” Toyota’s chief branding officer, Simon Humphries, said during the company’s premiere event in Brussels this week.
Toyota listened to feedback from drivers, retailers, and journalists who experienced the bZ4X and delivered with the upgraded model.
The new electric SUV has more driving range, up to twice as fast charging, and double the towing capacity. But, that’s not all. The bZ4X has been updated inside and out. The interior is completely redesigned with a new 14″ infotainment and instrument display panel.
Toyota finally added a battery pre-conditioning feature as standard. For the first time, Toyota said the bZ4X can now fast charge in around 30 minutes in cold weather. Maximum DC charging power is still 150 kW.
A new route planning function that automatically selects the best charging station is also included. Toyota said the feature is available through an OTA update for current bZ4X drivers.
The new bZ4X has two battery options, 57.7kWh and 73.1 kWh. The smaller battery will be available exclusively in FWD while the larger battery has FWD and AWD configurations.
With up to 338 hp (252 kW), the upgraded AWD model is one of the most powerful Toyota vehicles in Europe. Its towing capacity has doubled to 1,500 kg.
Combined with an upgraded eAxle, the new long-range bZ4X has a WLTP driving range of up to 573 km (356 miles). That’s a significant improvement from the outgoing model’s range of up to 516 km (320 miles).
Although US specs have yet to be revealed, the 2025 bZ4X is rated with up to 252 miles on the EPA rating scale. When it arrives in the US, you can expect to see upwards of around 270 to 280 miles.
Toyota will launch the updated bZ4X in Europe later this year, one of three new EVs arriving by the end of 2025. The smaller Toyota C-HR+ and Urban Cruiser electric SUVs will join the updated model in Toyota’s growing European EV lineup.
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