Anthropic’s Fundraising Raises Hopes for FTX Creditors
Recent reports of AI startup Anthropic securing billions in funding from Google, following a similar investment from Amazon, have sparked optimism among FTX creditors. This is due to the involvement of ex-FTX CEO Sam Bankman-Fried, who has invested in Anthropic.
Prosecutors Seek to Limit Bankman-Fried’s Defense
However, prosecutors in Bankman-Fried’s ongoing fraud trial are not pleased with this development. Assistant US Attorney Thane Rehn has filed a motion requesting that Bankman-Fried be prohibited from discussing Anthropic during the trial.
Rehn cited a previous ruling by Judge Lewis A. Kaplan, stating that the intention to repay misappropriated funds is irrelevant as a matter of law. He argued that bringing up Anthropic would be irrelevant and could lead to unfair prejudice, confusion, and waste of time.
Rehn also highlighted the speculative nature of venture capital investments, using FTX as an example. Despite raising substantial investments in 2021 and 2022, FTX’s shares are now worthless.
Upcoming Trial Proceedings
The defense has not yet responded to the motion. The trial will resume on Tuesday, with the cross-examination of Alameda Research and FTX co-founder Gary Wang. There may also be testimony from Alameda Research’s former CEO Caroline Ellison.
Hot Take: Implications for Bankman-Fried’s Defense
The motion filed by Assistant US Attorney Thane Rehn raises important questions about the relevance of Anthropic’s fundraising to Sam Bankman-Fried’s fraud trial. If Judge Kaplan grants the motion and prohibits Bankman-Fried from discussing Anthropic, it could limit his defense strategy. The prosecution aims to prevent the introduction of evidence that they consider irrelevant and potentially prejudicial. This development adds an intriguing twist to an already high-profile trial, leaving both sides eagerly awaiting the judge’s decision.
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