US prosecutors did required The court that presided over the trial of Sam Bankman-Fried to prevent his legal team from presenting any arguments regarding the potential recovery of FTX client assets that had been invested in Anthropic.
Bankman-Fried invested $500 million in the AI startup in April 2022. The US government is set to present evidence that the human investment was made using funds embezzled from FTX customer deposits.
Anthropic has made headlines in recent weeks as it looks to raise new money from investors, courting the likes of Amazon and Google, which could lead to a valuation of between $20 billion and $30 billion.
US prosecutors point out that recent reports focusing on the company’s potentially high valuation would also increase the value of Bankman-Fried’s investment, which could increase the potential recovery for FTX’s clients and other creditors in FTX’s bankruptcy.
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According to the letter submitted to Judge Lewis Kaplan, legal teams representing the US government and Bankman-Fried consulted about various issues that could be raised during cross-examination.
Bankman-Fried’s legal team plans to present evidence regarding the current value of the former FTX CEO’s $500 million investment in Anthropic last year.
Prosecutors believe this evidence is intended to be used to support the argument that FTX customers and other victims will be fully compensated for their losses, which the court previously referred to as an “impermissible purpose”:
“Such evidence would therefore be entirely irrelevant, and would pose a significant risk of unfair prejudice, confusion of issues, misleading of the jury, undue delay, and loss of time.”
The US government asserts that the indictment against Bankman-Fried centers on allegations of wire fraud using FTX customer deposits to make investments and other expenses. Prosecutors argue that any mention of potentially profitable investments is ultimately inconsequential and irrelevant to the charges being considered by the jury.
The US government asserts that although it plans to present evidence of Bankman-Fried’s alleged misappropriation of customer deposits that resulted in massive losses on FTX’s balance sheet, it does not intend to present any evidence regarding the victims’ ultimate losses once the FTX bankruptcy process is concluded. complete.
Cointelegraph journalist Ana Paula Pereira is in New York to cover the Bankman-Fried trial. The first week of the trial focused on determining how about $8 billion in FTX customer funds disappeared from the collapsed cryptocurrency exchange.
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