US DOJ Seeks to Block Sam Bankman-Fried’s Anthropic Investments in Lawsuit
In the ongoing United States v. Samuel Bankman-Fried lawsuit, the US Department of Justice (DOJ) has requested that the defendant be prohibited from introducing evidence or arguments about the current value of certain investments, particularly a $500 million investment in artificial intelligence company Anthropic.
Prosecutors Argue Evidence is Irrelevant and Prejudicial
In their court filing on October 8, DOJ attorneys argued that evidence of the defendant’s current investments would be irrelevant and could lead to unfair prejudice, confusion, and waste of time. They believe that such evidence could only serve to support the argument that FTX customers and other victims will be compensated, which is not a permissible purpose.
FTX and Alameda Research’s Investment in Anthropic
According to research firm PitchBook, FTX and its sister company Alameda Research made a $500 million investment in Anthropic. Notably, FTX co-founder Sam Bankman-Fried, former head of engineering Nishad Singh, and former Alameda Research CEO Caroline Ellison were also investors in Anthropic.
Anthropic Plans to Raise Funding at $30 Billion Valuation
Anthropic has announced its plans to raise additional funding from companies like Amazon and Google at a valuation between $20 billion and $30 billion. The potential increase in valuation could impact the recovery for FTX customers and other creditors involved in the FTX bankruptcy case. The court decision regarding Anthropic’s asset sales is still pending.
Hot Take: DOJ Seeks to Limit Defendant’s Arguments on Investments
The US DOJ has requested that Sam Bankman-Fried be prevented from introducing evidence or arguments about the value of certain investments in the ongoing lawsuit. Prosecutors argue that such evidence is irrelevant and could lead to unfair prejudice. This comes as FTX and Alameda Research’s $500 million investment in Anthropic becomes a focal point. Meanwhile, Anthropic plans to raise funding at a valuation between $20 billion and $30 billion, potentially impacting the recovery for FTX customers and other creditors. The court decision on Anthropic’s asset sales is still pending.
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