Tuesday, October 31, 2023

Australian Court Finds Carnival Liable in First Class Action COVID-19 Suit

Ruby Princess in Australia — Carnival Australia was found liable in a first-ever cruise industry class action over COVID-19 (file photo)

A court in Australia in a potential landmark case for the cruise industry has ruled that Carnival Australia and Princess Cruises were “negligent in their duty” to passengers on a now infamous March 2020 cruise aboard the Ruby Princess that became the single largest outbreak of COVID-19 in Australia. Lawyers for the plaintiffs are reporting that this is also the first ever successful class action suit against the cruise industry and they are predicting the decision could expose Carnival Australia to a large number of claims.

The case stems from a March 2020 13-day cruise sailing from Australia aboard the Ruby Princess (113,561 gross ton cruise ship with accommodations for 3,080 passengers and 1,200 crew). The cruise departed just as the COVID-19 pandemic was overtaking the world and within days the cruise industry would be suspending operations worldwide.

The cruise ship curtailed its trip returning to Australia. More than 660 of the 2,671 passengers aboard would test positive for the virus and it was traced by the authorities to be the source of spreading the virus in Australia. They reported that 28 passengers died from COVID-19 and a subsequent investigation found that the cruise line made “inexcusable mistakes,” in handling the passengers and ultimately disembarking them to create an event that spread the virus within the community.

Using Australia’s Consumer Law, lawyers formed a class action with the lead plaintiff being a woman who contracted the disease and her husband who became seriously ill. He was in a four-week medically induced comma and long-term recovery. The wife as the lead plaintiff sued for A$350,000 (US$226,000) citing damages for distress and disappointment.

Justice Angus Stewart in a ruling released yesterday said that Carnival Australia as the charterer of the cruise ship from its owners Princess Cruises, a brand owned by Carnival Corporation & PLC, was negligent in certain elements including permitting the cruise to proceed. The ruling says that the company should have had a reasonable expectation of the dangers and it was reasonable and advisable at that time to have canceled the cruise.

Further, the ruling finds that Carnival Australia made misleading representations in its communications before the cruise suggesting to customers booked for the trip that it was “reasonably safe” to take the cruise. The judge believes the company at that point in time should have been aware that screening procedures were unlikely to identify everyone that was infected with the virus. The ruling highlights Princess Cruises’ earlier experiences with the Diamond Princess, which was quarantined in Japan due to the virus, and the Grand Princess, which also received special treatment in the U.S. after passengers tested positive.

The judge however denied the bulk of the lead plaintiff’s claim. The ruling cited a refund issued by the cruise company which the judge ruled more than covered any damages for personal injury and distress. Plaintiff Susan Karpik, a retired nurse, was awarded A$4,400 (US$2,800) plus interest for out-of-pocket medical expenses. Her husband Henry Karpik has a separate claim which is in the yet-to-be-decided portion of the class.

Lawyers for the class action said that each passenger will need to prove their individual damages while predicting that a few such as Mr. Karpik would have much larger claims and would meet the judge’s threshold for personal injury awards exceeding the refund from the cruise line. The lawyers are urging Carnival Australia to settle with the class as opposed to proceeding with each claim individually.

Later this year or in early 2024, the court is expected to rule about the scope of the class. Australia’s High Court has said as many as 700 passengers from the Ruby Princess could be potentially included in the class. Carnival Australia has sought to exclude American passengers citing a class-action waiver in their cruise contract.

Carnival Australia released a statement saying that the pandemic was a difficult time for Australia. The company said it had seen the ruling and was reviewing it in detail.

While the ruling is unique to Australian law, the cruise industry faces many claims from passengers in multiple jurisdictions related to the onset of COVID-19 and outbreaks of the virus aboard cruise ships. Carnival Corporation had several high-profile cases, including not only those aboard the Princess Cruises ships but also a Holland America Line cruise that was forced to sail from South America and transit the Panama Canal to find a port to disembark passengers. Florida eventually agreed to reopen its ports for two Holland America ships in a controlled disembarkation after the industry and ports suspended operations.

Record Year for Cruise Ship Visits and Passengers at Port of Vancouver

The Port of Vancouver in 2009 became the first port in Canada, and the third in the world, to introduce shore power for cruise ships.

cruise ship in Vancouver — Holland America's Koningsdam made the final cruise call at Vancouver for the 2023 season (Port of Vancouver)

The cruise industry and the Port of Vancouver closed a record season with the final cruise ship call of the year in the port. It marked the first year without pandemic-related restrictions and with the continuing popularity of Alaska as a destination saw the industry return to pre-pandemic growth levels.

The season began on April 12 with the arrival of Princess Cruises’ Sapphire Princess and concluded with a total of 332 ship visits. The last cruise ship of the season was Holland America Line’s Koningsdam. Port officials during a farewell ceremony today reported that Holland America’s five cruise ships represented a quarter of the total number of passengers visiting Vancouver. When the final number is calculated, the Port of Vancouver estimates it will be a record 1.25 million passengers.

“Cruise returned to Vancouver emphatically this year after several seasons impacted by the global pandemic,” highlighted Peter Xotta, vice president of operations and supply chain at the Vancouver Fraser Port Authority, the federal agency mandated to operate the Port of Vancouver.

The record passenger total represents a 54 percent increase compared to 2022. The port was closed to cruise ships in 2020 and 2021 due to the pandemic-related restrictions on travel. Signaling the overall return to growth for the Alaska market, Vancouver also reported that this year’s passenger total is an increase of more than 13 percent over the record set in 2019 of 1.1 million passengers.

In a positive sign for the cruise industry, the ships were busy with the port reporting an average occupancy rate of 95 percent for the 2023 season, which compared with an average of just 69 percent occupancy in 2022. Occupancy peaked at 96 percent occupancy during the summer months, which compared favorably with the industry’s pre-pandemic average of between 93 and 99 percent occupancy. They reported an average 98 percent occupancy in 2019, but the port had 15 percent fewer cruise ship calls or a total of 288 in 2019.

Looking forward to the 2024 season, Xotta said indications from the cruise lines based on preliminary bookings are for a similar number of cruise ships calling at the port of Vancouver.

The Port of Vancouver highlights that the 2023 season also included 15 of the 20 busiest days ever for cruise passengers at the Canada Place cruise terminal. The 332 cruise ship calls between April and October 2023, set a new record for the Canada Place cruise terminal, and an increase of nine percent compared to 307 visits in 2022.

While the number of cruise ship visits continues to increase, port officials also highlighted that the emissions from ships are declining. This year nearly 75 percent of the cruise calls used shore power, up from 70 percent last year. and 50 percent in 2019. The Port of Vancouver in 2009 became the first port in Canada, and the third in the world, to introduce shore power for cruise ships.

EU Unveils Roadmap for Port Infrastructure Support to Namibia

The quiet port of Walvis Bay could soon be transformed into a hub for critical minerals (file image courtesy African Development Bank)

Almost a year after the EU and Namibia signed an MoU on developing supply chains for rare earth metals and green hydrogen, the two partners have announced the next steps with concrete actions to advance their energy transition partnership.

On the sidelines of the EU- Namibia Business Forum held this week in Brussels, European Commission President Ursula von der Leyen endorsed a 2023-2025 roadmap, which will act as a guide in supporting Namibia’s fledgling renewable energy industry.

During the period, the EU will make an investment of over one billion euros and support an upcoming study for the development of the Port of Walvis Bay into an industrial and logistics hub. In an interview back in August, Namibian Ports Authority (Namport) CEO Andrew Kanime projected that the port expansion works in the country needed around $2.1 billion to reach the desired capacity for energy exports. Walvis Bay would take up much of the expansion efforts.

In addition, the EU will also work with the Port of Antwerp and Bruges International to develop a master plan, which covers multimodal infrastructure, spatial planning and market organization for the Port of Walvis Bay. A key feature of this deal is the development of the Walvis Bay-Maputo Corridor, a coast-to-coast corridor linking the Atlantic to the Western Indian Ocean. The route is critical in serving the Southern-Central Africa copper belt. With copper increasingly in high demand from renewable energy industries, efficiency in shipment of the metal is now a matter of great interest.

The Dutch government has also commissioned a feasibility study for the expansion of the Lüderitz port, located 250 nautical miles south of the Port of Walvis Bay.

“The EU needs to secure a sustainable supply of raw materials, especially those critical in delivering the green and clean energy objectives. As part of the Action Plan on Critical Raw Materials, the Commission is already building partnerships with resource-rich third countries,” said EC in a statement.

In June, Namibia banned export of unprocessed lithium and rare earth metals. Industry stakeholders have pointed out that such a directive would be beneficial if Namibia had the necessary industrial and logistical capacity.

In a meeting for mining executives this week in Namibia, Joe Walsh, the managing director of lithium processing company Lepidico said his firm will be processing battery-grade lithium at its plant to be built in Abu Dhabi, ostensibly because of the city’s proximity to industrial and logistics hub. Lepidico has an ongoing lithium mining project in the Karibib region of Namibia.

“Abu Dhabi offers immediate logistical efficiencies, an established industrial park with available shared infrastructure. This is a very good example of efficient and effective infrastructure that would be a huge benefit if it was installed, say, at Walvis Bay in Namibia,” Walsh elaborated.

Indeed, the EU-Namibia partnership is essential in developing the large-scale infrastructure projects needed to support local metals processing and export. In return, Namibia is poised to supply the EU bloc with green hydrogen and minerals needed for clean energy technologies.

Interview: Chevron's Robert Wolf on the Growing Popularity of Biofuel

Biofuel plant operated by Renewable Energy Group, Emden, Germany (Chevron file image)

Biofuel is one of the simplest options available for vessel operators to lower emissions today, without waiting for new equipment or new technology. According to the Global Centre for Maritime Decarbonisation, biofuel can cut net carbon emissions by 20 percent (for a typical 30 percent biofuel / 70 percent MGO blend). Formulations for marine diesel engines are available in many major ports, and the fuel's popularity is rising among operators and charterers who want to control emissions right away.

For more information, TME recently caught up with Robert Wolf, Senior Manager Strategic Initiatives at Chevron-owned Renewable Energy Group, a leading producer and distributor of biofuel bunkers.

Where is the maritime industry at today with the uptake of biofuels? Is it moving beyond a trial phase?

I think trialing is not needed anymore, specifically on the technology side. It's now more about the pricing and the commitment from the shipowners.

Fuel costs are very important to the cost structure of each shipowner. The general approach is still that they take what is needed in order to either fulfill their customer demand, fulfill regulation, or fulfill their own carbon reduction targets that they have as a company. But price is always a discussion point. There's nobody who says, "let's take a B100 [100% blend] and I'll pay the premium." Unfortunately, it doesn't work like that yet.

The general range of blends used in the market today is somewhere between a B20 and a B50, depending on the incentive structure. The Dutch government has a very interesting incentive structure, so there we see that the B30 and B50 are being used a lot. In Singapore, it's B24.

Where are your production sites for biofuel?

We have 11 production facilities for biofuels in total. 10 of those are biodiesel plants and one is for renewable diesel. They're predominantly in the Midwest.

There is a lot of additional renewable diesel production volume that is anticipated to come online in the US in the next couple of years. Also in the past few months, you see the same kind of investments going into Europe. These production facilities are coming online in combination with production of sustainable aviation fuel, or SAF, which has much tighter tolerances for quality.

What are the challenges ahead for meeting the global demand for biofuel?

The main challenge is about the efficient allocation of the global supply of biofuel feedstocks. And I think that that should be done based on energy input and on environmental impact.

That is something that we as a renewable fuels producer are actively lobbying with government. We want to make sure that the government has a view that you can only use one feedstock molecule once. And it needs to be allocated in such a way that all different kind of lower carbon fuel solutions will have the right allocation for the future, because the world needs it all. - TME

APM Terminals and DP World to Switch Box Handlers from Diesel to Electric

The research estimates that there are 100,000 to 120,000 pieces of container handling equipment that could be converted starting in 2 to 8 years to electric (DP World)

APM Terminals and DP World, two of the leading operators of shipping terminals worldwide, are planning to accelerate the decarbonization of their terminals and port operations through the widespread electrification of container handling equipment. The companies announced their support for the research findings and roadmap for electrification of the equipment outlined in a white paper that is also endorsed by Eurogate, the Port of Kalundborg, Denmark, and Smart Freight Centre.

The companies highlighted that the research demonstrates that the challenges hampering the uptake of battery-electric container handlers can be mostly overcome. They believe that the “tipping point” for battery-electric container handlers can be reached within the next two to eight years.

“Let me be clear: we need to accelerate our work in decarbonization, and we need to do it now,” Keith Svendsen, CEO of APM Terminals, an A.P. Moller-Maersk company. “I am happy to say the research we conducted through Systemiq and ZEnMo strongly backs that a tipping point for the electrification for CHE is within reach in this decade. We are now calling for action for the entire port ecosystem to accelerate towards this milestone.”

They believe that it will be possible to replace the diesel-operated equipment with battery-electric handlers. They highlight the significant contribution that this step will make by citing estimates that between 100,000 and 120,000 handlers are operating at the world’s 940 container ports. They believe that this equipment is responsible for 10 to 15 million tonnes of carbon dioxide annually (scope 1 and scope 2).

"Battery-electric equipment in ports is a realistic, achievable, and affordable way to dramatically reduce carbon emissions,” says Tiemen Meester, COO of Ports & Terminals, DP World. “Throughout my career, I've seen many industry players talk about various methods for achieving net zero, but I've never been so convinced by one tactic's ability to accelerate decarbonization.”

APM Terminals and DP World are encouraging industry peers to review the research and support its goals. As a next step, the partners are preparing to mobilize industry-wide collaboration around container handler electrification and zero-emission port operations. They note that the research shows that key levers and related actions can be taken by the players across the value chain including terminal operators, OEMs, port authorities, affiliated government entities, and shipping line operators, to accelerate decarbonization.

A "Mattress Issue" is Part of the Navy's Serious Fatigue Problem

After two deadly collisions between destroyers and merchant ships in 2017, the U.S. Navy issued a series of policy changes intended to improve training and reduce fatigue. The investments in training are well under way, but the service has made little progress on reducing chronic sleep deprivation among sailors at sea, according to the Government Accountability Office.

Fatigue is a constant companion in the annals of marine casualties, and is enough of a problem that merchant ships are supposed to follow hours of work and rest limits under the Maritime Labor Convention (often but not always observed). Warships are exempt, and the average U.S. Navy sailor in the surface force gets 5.25 hours of sleep per night, the service recently told Congress - well below the 7.5-hour minimum that the Navy would like to maintain.

While health is important, sailors' ability to think could be the more immediate concern. According to longstanding guidance from the National Institutes of Health, prolonged periods with little sleep tend to result in slower cognition, reduced working memory, poorer learning ability, reduced activity in the frontal lobe, and a tendency to repeat the same behaviors even when they don't work - all qualities associated with lower intelligence. Multiple studies show that prolonged periods with 4-6 hours of sleep produce poorer cognitive performance, and the test subjects are often unaware that they are underperforming. Beyond cognition, sleep deprivation is also associated with involuntary microsleeps, which have caused serious casualties in merchant shipping.

The decades-old body of research on sleep deprivation informed safety reforms in aviation, trucking and shipping. The Navy attempted similar improvements after the two deadly destroyer collisions in 2017, which both involved fatigue factors.

However, a GAO review in 2021 found that little had changed in the surface fleet's berthing areas. Crewing shortfalls still persisted on underway vessels, and most of the surface fleet was operating at 15 percent below baseline manning levels, leading to chronic overwork and less time for sleep.

In its 2021 review, GAO recommended eight ways that the Navy could operate with better-rested personnel. Most of the recommendations were accepted and closed, but one important item - "address the factors causing sailor fatigue" - was not resolved, GAO said in an update this month.

The first and most persistent root cause is undermanning. In 2021, GAO found that the Navy "routinely assigned fewer crewmembers to its ships than its workload studies determined are needed to safely operate them." Those conditions are unchanged today, GAO said - and with a 7,500-person recruiting shortfall this year, achieving near-term improvements may be challenging. The Navy is currently developing a 15-year plan to "fully crew the fleet," the agency said.

The second problem appears simple to fix. In a 2022 personnel survey, sailors report that "uncomfortable mattresses" are a leading cause of inadequate sleep on board. The standard Navy mattress (NAVSEA MIL-STD-1623) must meet extensive fireproofing requirements, but it is not rated for comfortability. This "mattress issue" remains unaddressed, and furthermore, the Navy told GAO that it has no "resource sponsor willing to examine it further and fund mattress improvements across the fleet." For the interim, the mattress replacement cycle can be sped up to every three years instead of every five, but "the discomfort issue remains," GAO said.

In a response to GAO's report, the Navy acknowledged the issue and said that it "will continue to advocate for fully manned ships . . . and improved mattresses and rack curtains."

Maersk-Backed Energy Firm Secures Land for Green Methanol Plant in Spain

The Laura Maersk, a first-in-class container feeder powered by methanol. Though dual-fuel methanol engines are increasingly popular for newbuilds, only Maersk is investing in a green methanol supply chain at scale (Maersk)

The new Maersk-backed fuel startup C2X has secured the land it will need to build a green methanol plant at the Port of Huelva, Spain.

“Securing suitable land is an important step in our ambition to become a leading large-scale methanol producer in Spain. We are excited about this opportunity in Huelva to establish one of Europe’s leading green methanol facilities in such an optimal location,” said Brian Davis, C2X's CEO.

The 115-acre parcel at Huelva is located in the Punta del Sebo area, an industrial district south of the city center. C2X says it has enough space to make up to a million tonnes of green methanol per year at the site (when fully built out). There are still administrative steps to be finished before construction can start, C2X said.

The agreement is an outgrowth of Maersk's framework agreement with the government of Spain, signed in November 2022. That plan called for a total output capacity of two million tonnes a year, or twice the volume of the facility at Huelva.

The deal is part of Spain's plans to develop a "hydrogen valley" in Andalucia, which will have a total electrolysis capacity of two gigawatts and output of up to 300,000 tonnes of green hydrogen a year. It is among the most ambitious projects of its kind in Europe, and is aimed squarely at bunker fuel production. Spanish refiner Cepsa - the project sponsor - says that it will prevent emissions of six million tonnes of CO2 per year.

Andalusia is ideally suited for e-fuel production because of its abundant resources for onshore wind and onshore solar, which are among the cheapest sources of electricity (and substantially less expensive than offshore wind). It is also home to petchem plants that consume a lot of fossil-derived hydrogen, and these facilities are natural local consumers for the product.

The port deal follows on the heels of a feasibility-study agreement that C2X signed with the government of Egypt in early October, which will evaluate the possibility of a total production capacity of one million tonnes per year.

“Replacing the existing use of fossil methanol with green methanol, and also meeting the growing demand from the use of green methanol as a fuel, requires a step change in the global production capacity of non-fossil methanol,” AP Moller-Maersk said in announcing C2X's launch last month.

Netherlands Plans to Invest in Strengthening Domestic Shipbuilding Industry

Netherlands shipbuilding — Damen Shipyards Gorinchem (file photo)

The Dutch government plans to make significant investments into its shipbuilding industry over the next two years designed to enhance capabilities while advancing innovation and meeting the need for green solutions and the nation’s safety. Based on a recent study, they plan to work with the industry and invest €60 million to enhance domestic shipbuilding capabilities and the competitive stance of the industry.

“The Netherlands has insufficient competitive construction capacity for naval ships and specialized work vessels,” the government concludes. They point out the desperate need for the capabilities for the safety of the nation as well as its vital infrastructure to help protect against water and energy transition. In a country that is built on reclaimed land and uses dykes to manage the sea, maritime assets are growing more important as they are confronted with rising sea levels.

“Our maritime manufacturing industry is wrongly regarded as a quiet asset,” said Marja van Bijsterveldt, cabinet envoy who is leading the initiatives focused on the shipbuilding industry. “Together with other countries in Europe, we have lost a large part of our global market share for commercial seagoing vessels to Asia in just a few decades. The Netherlands depends on ships for our safety, dry feet, energy transition, and prosperity. We can no longer afford the laissez-faire policies of recent decades.”

Highlighting the loss of market share, the government’s analysis developed with the shipbuilding industry concludes they have slipped from 45 percent of ship volume built domestically in the 1980s to just four percent now. They point out that with strong government support, Asian and Chinese shipbuilders have taken over and are now building more complex ships. According to shipowners, building a ship in the Netherlands is now 20 to 40 percent more expensive than in Asia. Van Bijsterveldt calls those figures “shocking,” saying they will ultimately be disastrous if the Netherlands does not manage to turn the tide.

In addition to the national security interest, they also point to emerging business opportunities in shipbuilding if the industry can be strengthened. They highlight that the world’s fleet is now 22 years old, and based on average longevity for a ship of 30 years, there will need to be a major replacement cycle within seven years in addition to the changes coming to address environmental regulations.

The government's existing Maritime Master Plan calls for building up to 40 sustainable ships that will be able to run on LNG, methanol, or hydrogen as well as being able to capture CO2. The National Growth Fund this year is committing €210 million to these objectives. However, as part of the new initiatives, the government targets reducing construction costs by 10 to 15 percent, in part through digitalization and robotization.

They concluded that the maritime manufacturing industry is an excellent example of a sector that faces challenges in terms of sustainability, protecting national security, and maintaining competition. They will look to strengthen the ecosystem surrounding the maritime industry working with the shipbuilders on improving financing and financial shipping regulations.

The Dutch Navy they note is already investing €50 million annually in maritime innovations. As part of the new program, formal instructions will be given within the government to take the national interests into account when purchasing ships.

Several frontrunner projects are also planned. In addition to the focus on digitalization to enhance the industry. Efforts will focus on new technologies, working, models, and revenue models in the production, conversion, and repair of ships. They will also launch a study into nuclear propulsion.

In addition, the government is setting up a so-called National Maritime Manufacturing Industry Management Agency, modeled on the British National Shipbuilding Office. The cabinet has also decided to appoint a long-term maritime manufacturing industry envoy as successor to Van Bijsterveldt, who was acting as a temporary envoy.

The investments and initiatives will be undertaken in 2024 and 2025 with the goal of strengthening the domestic shipbuilding industry.

Ørsted Tests Industry First Using Heavy Lift Drones at Wind Farms

drone delivery to offshore wind turbine — The drone can carry up to 150 lbs. of equipment to the maintenance crew on the top of the turbine (Orsted)

Ørsted is testing new methods to increase the efficiency of the maintenance operations at its offshore wind farms. The company’s UK-based operation reports it completed the industry first with the use of “autonomous giant drones” to transport cargo to the turbines.

The company has previously highlighted the maintenance challenge as wind farms move further offshore. The company notes that with its Service Operating Vessels and crew transfer vessels it is able to have technicians onsite and keep basic spare parts available. However, when a specialized tool or spare part is required, it means either shuttling it out to the maintenance crew or one of the vessels going back to shore to obtain the necessary items.

They recently tested a massive drone with the ability to transport 68 kg (approximately 150 lbs.) of material. In the demonstration video, they show the drone carrying a satchel with the cargo, launching from the Edda Mistral, a purpose-built service operation vessel (SOV) for the offshore wind sector. The drone has a wingspan of 8.5 feet – the same as an albatross – and carries the cargo and drops it to the crew on the top of one of the 174 wind turbines standing more nearly 625 in height at the UK’s Hornsea 1 wind farm.

Located near Hull and Grimsby, the Hornsea wind farm is located 75 miles off the Yorkshire coast in the North Sea. They highlight the ability to get cargo to the site or up to the top of the turbine without having to shut down the turbine when the cargo is delivered or requiring the crew to make multiple trips.

Ørsted highlights that it has been using small drones for some time, but that they only carried lighter loads. Earlier in the year, the company’s operations in Denmark tested transporting spare parts from shore to the Anholt Offshore Wind Farm which is nearly 15 miles from the Danish coast.

The company believes that drones will make maintenance operations faster and more efficient. Reducing the number of trips, the vessels make back and forth also reduces emissions. Østed reports it is actively seeking partnerships with the best drone cargo operations and service providers to help grow the supply chain in the UK.

CRIMINAL CRYPTO CAPITALI$M
Sam Bankman-Fried on the witness stand faces grilling by the feds in Manhattan fraud trial
2023/10/30

Former FTX CEO Sam Bankman-Fried arrives for a bail hearing at Manhattan Federal Court on Aug. 11, 2023, in New York City.

- Michael M. Santiago/Getty Images North America/TNS

NEW YORK — Sam Bankman-Fried — the one-time millennial magnate accused of siphoning billions from customers of his bankrupt cryptocurrency exchange — ducked dozens of questions during a grilling by the feds while he was on the witness stand Monday.

Facing more than a century in prison if convicted, Bankman-Fried decided last week to take the unusual step of testifying in his own defense. Lawyers typically advise against it because of the risks defendants face on cross-examination.

The 31-year-old Palo Alto, California, man was the subject of glowing magazine profiles for planning to give away 99% of his wealth before facing allegations it was all stolen in late 2022. He testified before Congress about making digital currency trading more accessible and transparent than traditional markets for everyday folk.

Assistant U.S. Attorney Danielle Sassoon held Bankman-Fried’s feet to the fire about a litany of public statements before and after his precipitous downfall when he assured customers of his crypto trading platform FTX that their financial safety was tantamount.

“Mr. Bankman-Fried, (it’s) fair to say that you wanted FTX’s customers to trust you?” Sassoon asked.

“That would have been ideal, yeah,” Bankman-Fried replied.

The Massachusetts Institute of Technology grad’s alleged scheme has been characterized by Manhattan U.S. Attorney Damian Williams as one of the largest financial frauds in history.

Prosecutors say that as he touted himself as a “savior of the cryptocurrency industry,” FTX customer deposits were being siphoned to his sister hedge fund Alameda Research to bankroll risky venture investments, buy real estate in the Bahamas, where FTX was based, court celebrity endorsements and funnel $100 million to politicians in both parties to further his agenda in Washington.

The money was allegedly funneled through two mechanisms: bank accounts secretly controlled by Alameda in which FTX customers were directed to deposit their funds, and through a hidden portal built into the exchange’s code allowing Alameda to withdraw as much as it wanted.

Convicted FTX co-founder and cooperator Gary Wang previously told jurors Bankman-Fried directed him to write code giving Alameda a $65 billion line of credit without requiring it to put up collateral like other customers. Bankman-Fried acknowledged Alameda was the only customer able to borrow such a large amount.

Responding to most of Sassoon’s questions with a curt, “Yep!” or “I don’t recall,” a nonchalant Bankman-Fried denied he’d made trading decisions at Alameda, though acknowledged he wasn’t “walled off,” as he’d claimed publicly.

“Sitting here today, Mr. Bankman-Fried, do you deny that Alameda was the only FTX customer that accepted FTX customer fiat deposits directly into its own bank accounts?” Sassoon asked.

“I’m not sure,” he said, later adding, “I’m not confident” when asked if he could identify a single other one.

Asked whether he recalled saying that FTX and Alameda were completely separate, Bankman-Fried said, “I’m not sure about the exact phrasing.”

Bankman-Fried’s indirect answers, in which he often responded by rewording prosecutor Sassoon’s questions, prompted Judge Lewis Kaplan to interject more than once, at one point ordering him to “just answer the question instead of trying to ask the question.”

After Bankman-Fried founded FTX in 2019, it took off at lightning speed, becoming the world’s second-largest crypto trading platform worth $32 billion at its peak.

When Alameda’s balance sheets were leaked and rumors began circulating about the state of FTX in November 2022, a surge of customers sought to withdraw their money in vain. They tried to withdraw $1 billion on Nov. 6. By the next day, that number had quadrupled.

Bankman-Fried said it wasn’t a lie when he posted “assets are fine” on Twitter Nov. 7, 2022, in a maligned tweet he soon deleted. But he acknowledged knowing the situation had reached crisis levels by the next day.

His lawyers described what happened as market forces outside of his control and cast blame on Alameda CEO and his on-again-off-again girlfriend, Caroline Ellison, 28, for not adequately hedging.

Ellison, who pleaded guilty to wire fraud and related charges shortly after her ex’s arrest, told jurors Bankman-Fried continuously directed her to secretly pay off Alameda’s debts and had her draw up misleading balance sheets when lenders asked to see the books.

The jury has also heard from FTX head of engineering Nishad Singh, who, like Wang and Ellison, is cooperating in the hopes of receiving a lenient prison term. They all said “SBF” directed them to carry out crimes.

Bankman-Fried has pleaded not guilty to seven counts, including wire fraud and conspiracy to commit money laundering. He also faces civil charges from the Securities and Exchange Commission and potentially a second trial.

Bankman-Fried acknowledged once describing FTX as the most regulated crypto exchange. Asked about remarks he made after its collapse, when he told a Vox reporter, “F–k regulators,” he told the jury, “I said that once.” He acknowledged privately saying his public comments about regulations were just a PR strategy and that he’d called “a specific subset” of crypto Twitter, including FTX customers, “dumb motherf—–s.”

“Mr. Bankman-Fried, would you agree you know how to tell a good story?” Sassoon asked Bankman-Fried at one point.

“I don’t know,” he replied. “It depends what metric you use.”

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© New York Daily News

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