April 19, 2024
Prosecutors Consider Sam Bankman-Fried's $500M Anthropic Stake Irrelevant to Case
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Prosecutors Consider Sam Bankman-Fried’s $500M Anthropic Stake Irrelevant to Case

United States prosecutors have requested that the court overseeing Sam Bankman-Fried’s trial prohibit his legal team from arguing about the potential recovery of FTX customer assets invested in Anthropic. The U.S. government alleges that Bankman-Fried’s $500 million investment in the artificial intelligence startup in April 2022 was financed with misappropriated funds from FTX customer deposits.

U.S. prosecutors argue that recent reports about Anthropic’s potentially high valuation, including discussions with major companies like Amazon and Google, could increase the value of Bankman-Fried’s investment. This, in turn, might aid in recovering funds for FTX customers and other creditors during the FTX bankruptcy proceedings. The government’s position is outlined in a letter submitted to Judge Lewis Kaplan, where it’s mentioned that the legal teams representing the U.S. government and Bankman-Fried had discussed various issues for potential examination during witness cross-examination.

Bankman-Fried’s legal team intends to present evidence regarding the current value of his $500 million investment in Anthropic from 2022. Prosecutors argue that this evidence is intended to support the argument that FTX customers and other victims will be fully compensated for their losses, which they consider an “impermissible purpose.” They contend that such evidence would be irrelevant and could prejudice the jury, confuse the issues, mislead, cause undue delays, and waste time.

The government maintains that the charges against Bankman-Fried primarily revolve around allegations of wire fraud involving FTX customer deposits used for investments and other expenditures. They assert that any discussion of profitable investments made by Bankman-Fried is immaterial and irrelevant to the charges being considered by the jury. Furthermore, the government does not intend to present evidence concerning the ultimate losses incurred by victims once the FTX bankruptcy process is completed.

Image by Freepik

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