Prosecutors Seek to Exclude Details of Anthropic’s Fundraising in Sam Bankman-Fried Trial
Prosecutors in the trial of FTX founder Sam Bankman-Fried have requested that information regarding Anthropic’s recent fundraising activities be excluded. While the DOJ and the defense have reached agreement on certain issues related to witness testimony, they remain divided on whether matters concerning Anthropic’s fundraising can be raised.
The DOJ argues that the $500 million investment in Anthropic this year originated from FTX customer funds. However, they believe this information should not be used in Bankman-Fried’s defense against wire fraud charges. The government contends that evidence regarding the current value of Bankman-Fried’s investments can only support the argument that FTX customers and/or other victims will eventually recover their losses, which is deemed impermissible by the court.
In addition, the DOJ previously attempted to prevent Bankman-Fried’s defense team from claiming that FTX creditors would recoup most or all of their funds. The indictment accuses Bankman-Fried of wire fraud by misusing FTX customer deposits for investments and other expenses, with the profitability of those investments being irrelevant to the charges.
Anthropic Announces Plans for Further Fundraising as Trial Continues
Meanwhile, OpenAI competitor Anthropic has revealed its intentions to raise additional funds from major investors like Amazon and Google. The company aims for a valuation between $20 billion and $30 billion, potentially benefiting Bankman-Fried’s investment and sparking speculation about positive outcomes for FTX creditors in the bankruptcy case.
The filing from the DOJ also highlighted the risky nature of venture capital investments, noting that although FTX had raised substantial venture investments in 2021 and 2022, its shares are now worthless. However, it remains to be seen how the defense will respond to the latest filing from the prosecution.
The trial is scheduled to proceed on October 10, featuring the cross-examination of Alameda Research and FTX co-founder Gary Wang, as well as possible testimony from former Alameda Research CEO Caroline Ellison.
Hot Take: Prosecutors Seek to Limit Bankman-Fried’s Defense in Trial
In the ongoing trial of Sam Bankman-Fried, prosecutors are striving to restrict the defense’s ability to raise matters related to Anthropic’s fundraising activities. The Department of Justice asserts that information about a $500 million investment in Anthropic derived from FTX customer funds should not be used in Bankman-Fried’s defense against wire fraud charges. They argue that evidence regarding the value of his investments can only be used to support the argument that FTX customers and other victims will eventually recover their losses, which is deemed impermissible by the court.
Furthermore, Anthropic’s announcement of its plans for additional fundraising has added a new dimension to the trial. The company aims for a valuation between $20 billion and $30 billion, potentially impacting Bankman-Fried’s investment and raising speculation about positive outcomes for FTX creditors in the bankruptcy case. As the trial continues, it remains to be seen how the defense will respond to the DOJ’s latest filing.
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