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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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Go West, young brand – GreenPower Motor Company sells 11 more BEAST buses

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Go West, young brand – GreenPower Motor Company sells 11 more BEAST buses

GreenPower Motor Company says it’s received three orders for 11 of its BEAST electric Type D school buses for western state school districts in Arizona, California, and Oregon.

GreenPower hasn’t made the sort of headline-grabbing promises or big-money commitments that companies like Nikola and Lion Electric have, but while those companies are floundering GPM seems to be plugging away, taking orders where it can and actually delivering buses to schools. Late last year, the company scored 11 more orders for its flagship BEAST electric school bus.

As far as these latest orders go, the breakdown is:

  • seven to Los Banos Unified School District in Los Banos, California
  • two for the Hood River County School District in Hood River, Oregon
  • two for the Casa Grande Elementary School District in Casa Grande, Arizona

Those two BEAST electric school buses for Arizona will join another 90-passenger BEAST that was delivered to Phoenix Elementary School District #1, which operates 15 schools in the center of Phoenix, late last year.

“As school districts continue to make the change from NOx emitting diesel school buses to a cleaner, healthier means of transporting students, school district transportation departments are pursuing the gold standard of the industry – the GreenPower all-electric, purpose-built (BEAST) school buses,” said Paul Start, GreenPower’s Vice President of Sales, School Bus Group. “(The) GreenPower school bus order pipeline and production schedule are both at record levels with sales projections for (2025) set to eclipse the 2024 calendar year.”

GreenPower moved into an 80,000-square-foot production facility in South Charleston, West Virigina in August 2022, and delivered its first buses to that state the following year.

Electrek’s Take

GreenPower electric school buses
BEAST and NanoBEAST; via GreenPower Motor Company.

Since the first horseless carriage companies started operating 100 years ago (give or take), at least 1,900 different companies have been formed in the US, producing over 3,000 brands of American automobiles. By the mid 1980s, that had distilled down to “the big 3.”

All of which is to say: don’t let the recent round of bankruptcies fool you – startups in the car and truck industry is business as usual, but some of these companies will stick around. If you’re wondering which ones, look to the ones that are making units, not promises.

SOURCE | IMAGES: GreenPower Motors.

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Harbinger electric truck brand gets real with $100M Series B funding raise

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Harbinger electric truck brand gets real with 0M Series B funding raise

While some recent high-profile bankruptcies have cast doubt on the EV startup space recently, medium-duty electric truck maker Harbinger got a shot of credibility this week with a massive $100 million Series B funding round co-led by Capricorn’s Technology Impact Fund.

It’s been a rough couple of weeks for fledgling EV brands like Lion Electric and Canoo, but box van builder Harbinger is bucking the trend, fueling its latest funding round with an order book of 4,690 vehicles that’s valued at nearly $500 million. Some of the company’s more notable customers including Bimbo Bakeries (which owns brands like Sara Lee, Thomas’, and Entenmann’s) and THOR Industries (Airstream, Jayco, Thor), which is also one of the investors in the Series B.

Other prominent investors include Tiger Global, the Coca-Cola System Sustainability Fund, and ArcTern Ventures.

As for what makes Harbinger such an attractive investment prospect, Dipender Saluja, Managing Partner of Capricorn Investment Group’s Technology Impact Fund explains that, “Harbinger has demonstrated a remarkable ability to reach significant milestones far quicker than other EV companies … the market has been impressed by their ability to develop large portions of the vehicle in-house to drive down unit costs, while remaining capital efficient.”

The company plans to use the funds to ramp up to higher-volume production capacity and deliver on existing orders, as well as build-out of the company’s sales, customer support, and service operations.

“Harbinger is entering a rapid growth phase where we are focused on scaling production of our customer-ready platform,” said John Harris, co-founder and CEO. “These funds catalyze significant revenue generation. We’ve developed a vehicle for a segment that is ripe for electrification, and there is a strong product/market fit that will help fuel our upward trajectory through 2025 and beyond.”

The company has raised $200 million since its inception in 2021.

SOURCE | IMAGES: Harbinger.

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Michigan State Police deploy their first electric patrol vehicle

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Michigan State Police deploy their first electric patrol vehicle

There is no state more associated with cars and car culture than Michigan – and the state that’s home to the Motor City has just taken a huge step into the future with the deployment of its first-ever all electric police vehicle.

The 2024 Ford Mustang Mach-E patrol vehicle is assigned to the Michigan State Police State Security Operations Section, and will be to be used by armed, uniformed members of the MSP specializing in general law enforcement and security services at state-owned facilities in the Lansing, MI area.

“This is an exciting opportunity for us to research, in real time, how a battery electric vehicle performs on patrol,” says Col. James F. Grady II, director of the MSP. “Our state properties security officers patrol a substantially smaller number of miles per day than our troopers and motor carrier officers, within city limits and at lower speeds, coupled with the availability of charging infrastructure in downtown Lansing, making this the ideal environment to test the capabilities of a police-package battery electric vehicle.”

The MSP’s Precision Driving Unit is nationally renowned for its annual Police Vehicle Evaluation, which our own Scooter Doll participated in last year, driving the then-new Chevy Blazer EV Police Pursuit Vehicles in a game of “cops and robbers.”

In those tests, the EVs have impressed – but the MSP has been hesitant to commit to a BEV until now. “We began testing battery electric vehicles in 2022, but up until now hybrids were the only alternative fuel vehicle in our fleet,” said Lt. Nicholas Darlington, commander of the Precision Driving Unit. “Adding this battery electric vehicle to our patrol fleet will allow us to study the vehicle’s performance long-term to determine if there is a potential for cost savings and broader applicability within our fleet.”

Michigan joins other states like Wisconsin and California in deploying electric patrol cars and saving big money on fuel and maintenance, with many more out there and many more to come.

SOURCE | IMAGES: Michigan State Police.

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