Former Alameda Research CEO to be Questioned in SBF Trial
The defense team of Sam Bankman-Fried (SBF) is preparing to question Caroline Ellison, the former CEO of Alameda Research, in relation to FTX’s investment in AnthropicAI. The focus will be on Ellison’s reliance on legal counsel during her tenure at Alameda Research, which is closely associated with SBF’s bankrupt FTX crypto exchange. Ellison, a key figure in the criminal fraud case against SBF, testified that her advice regarding FTX’s investment portfolio was ignored. SBF’s legal team is seeking permission from the court to further investigate these allegations.
Defense Aims to Establish Compliance with Legal Advice
Following Ellison’s testimony, SBF’s legal team filed two critical motions. The first motion addresses the topic of “advice-of-counsel,” which Judge Lewis Kaplan had previously highlighted. The defense wants to explore Ellison’s understanding of lawyers’ role in formulating corporate policies, including the activation of auto-deletion features on messaging platform Signal. The Department of Justice had argued against discussing FTX’s current valuation, deeming it irrelevant to the core question of misappropriation of customer funds by Bankman-Fried.
Request to Discuss Anthropic Investment
SBF’s lawyers also filed a motion seeking permission to bring up Anthropic AI’s recent fundraising initiatives during the trial. They argue that this news is crucial context for evaluating FTX’s expected value analysis and aim to pose broader questions about FTX’s investment portfolio in light of this development. Judge Lewis Kaplan discussed the appropriateness of raising these issues during the trial with the attorneys. It was revealed that Ellison has a personal stake in Anthropic AI, which may be explored if deemed relevant by the court.
Hot Take: SBF’s Defense Digs Deeper into Investment Allegations
The defense team of Sam Bankman-Fried is strategically questioning Caroline Ellison, the former CEO of Alameda Research, to investigate the allegations surrounding FTX’s investment portfolio. By delving into Ellison’s reliance on legal counsel and exploring the role of lawyers in formulating corporate policies, SBF’s defense aims to establish compliance with legal advice. Additionally, they seek to bring up Anthropic AI’s recent fundraising initiatives as crucial context for evaluating FTX’s expected value analysis. As the trial progresses, these lines of questioning may shed light on the decision-making process at Alameda Research and FTX.
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