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Attorneys for Sam Bankman-Fried have officially sought the court’s permission to present evidence concerning his investment in Anthropic, an AI startup. In a correspondence directed to Judge Lewis A. Kaplan, SBF’s legal representatives contended that the prosecutors’ recent motion to bar any discussion of Anthropic misinterprets the relevance of the evidence.
Bankman-Fried’s investment in Anthropic in 2022, which has experienced a significant increase in valuation due to recent funding rounds, could potentially result in a full payout for FTX creditors, according to an assessment by a crypto bankruptcy attorney last week.
SBF’s Legal Team Asserts Anthropic Evidence is Pertinent
SBF’s legal team has stressed that the evidence regarding the current worth of the Anthropic investment is directly relevant to countering the government’s opening statement and the testimony presented thus far, as well as to demonstrating his good faith.
They noted that prosecutors have repeatedly referenced Alameda’s venture investments throughout the trial, labeling them as “risky.”
Additionally, Bankman-Fried’s attorneys argued that they should be allowed to present testimony from Caroline Ellison concerning the portfolio nature of venture capital investments. They asserted that the significant rise in Anthropic’s value since the previous year offers essential context and relates to the testimony provided by Ms. Ellison regarding anticipated value assessments.
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Prosecutors Reject Anthropic Evidence
The Department of Justice (DOJ) argued in its prior filing that Sam Bankman-Fried invested around $500 million in Anthropic in 2022, funds which they claim were illicitly obtained from FTX customers.
They stressed that evidence about the current value of the defendant’s investments could be used to imply that FTX customers or other victims might eventually receive compensation, a claim that the court has already ruled as inadmissible.
The central argument in the case against Bankman-Fried revolves around the alleged improper use of FTX customer funds for various investments. The prosecution maintains that the profitability or lack thereof of these investments is irrelevant to the criminal charges.
Moreover, the government plans to present evidence of the alleged misappropriation of customer funds, which resulted in significant financial losses for FTX. However, they clarified that they will not explore the ultimate financial situation of victims following the bankruptcy proceedings of FTX.
Importantly, Anthropic recently obtained additional funding from Google and other investors, potentially boosting its valuation to as much as $30 billion. This increase in valuation could aid FTX in achieving a “100% recovery rate” in assets as part of the exchange’s ongoing bankruptcy process, given Bankman-Fried’s substantial stake in Anthropic.
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