US Prosecutors Seek to Block Anthropic AI from SBF Trial
Assistant US Attorney Thane Rehn has filed a motion to prevent Sam Bankman-Fried (SBF) from introducing Anthropic as evidence in his trial, arguing that the growth of his investment in the company is insignificant. Prosecutors allege that Bankman-Fried used customer funds to invest $500 million in Anthropic, an AI firm involved in a deal with Amazon worth up to $4 billion. According to the filing, Anthropic’s valuation has now reached between $20 billion and $30 billion, with talks of an additional $2 billion funding from Google. Prosecutors claim that the current value of Anthropic is irrelevant to the case.
Optimism Among FTX Creditors
The significant growth of Anthropic has given hope to FTX creditors, who anticipate larger compensation following FTX’s collapse last year. However, prosecutors argue that evidence of Anthropic’s current valuation should not be presented during the trial unless it supports the argument of FTX customers being made whole. They emphasize that venture capital investments are speculative and highlight FTX’s example, where its valuation rose but eventually resulted in worthless shares.
SBF’s Defense Affected by Gary Wang’s Testimony
FTX co-founder Gary Wang testified against Sam Bankman-Fried and Caroline Ellison, admitting to wire, commodities, and securities fraud. Wang also revealed that FTX’s claimed $100 million insurance fund was a fabrication and did not contain the exchange’s native FTT tokens. His testimony has had a significant impact on SBF’s defense. Wang will testify again on October 10, while former Alameda Research CEO Caroline Ellison is set to give her first testimony.
Hot Take: The Battle in SBF’s Trial Intensifies
The ongoing trial of Sam Bankman-Fried continues to intensify as prosecutors seek to block the introduction of Anthropic AI as evidence. With Anthropic’s valuation soaring and the potential for additional funding from Google, FTX creditors are optimistic about increased compensation. However, prosecutors argue that the current value of Anthropic is immaterial to the case. Meanwhile, Gary Wang’s damaging testimony regarding FTX’s insurance fund has further weakened SBF’s defense. As the trial progresses, it remains to be seen how these developments will impact the outcome.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.