Legal Team for SBF Requests Court to Admit Positive Investment Evidence Amidst Fraud Charges
Summary:
Sam Bankman-Fried's attorneys have filed a motion to present documentary evidence of successful investments like Anthropic, contradicting the US government's depiction of risky, unprofitable ventures. The prosecution alleges the Anthropic investment, made prior to FTX's collapse, involved fraudulent use of customer funds. Bankman-Fried faces seven counts of conspiracy and fraud, charges he denies. The trial continues on October 11.
The legal team of Sam “SBF” Bankman-Fried has lodged an application on October 10, seeking the court's approval to show evidence in favor of profitable investments which include supporting the AI-backed newcomer, Anthropic. This follows after US prosecutors, on October 9, urged a prohibition on SBF’s legal counsel from airing any defences attached to the recovery of FTX patron funds via investing in Anthropic. Bankman-Fried is known to have injected $500 million into the AI advent in April 2022, prior to the financial meltdown of the exchange. The Department of Justice (DoJ) aims to demonstrate that the said investment was financed under fraudulent schemes involving misappropriated client funds. SBF's lawyers, however, maintain the allegation “misrepresents” the importance of the evidence and “courteously” implore the court to refuse the prosecutors’ appeal. Furthermore, they highlighted the government's allegations that the venture investments by Alameda were deemed “risky” and “unprofitable." They stressed that counterevidence indicating successful investment returns, such as that from Anthropic, should be permitted to be presented. It's noteworthy to mention that Anthropic recently drew in sizeable investments, amounting to $4 billion from e-commerce behemoth, Amazon, and another $100 million from South Korean communication titan, SK Telecom. Regarding the case at hand, SBF's legal counsel expressed a willingness to adhere to any “appropriate limiting instruction” from the court regarding how the Anthropic investment evidence should be used. On October 11, the second week of the criminal trial against the former FTX chief executive officer will proceed. Bankman-Fried is under indictment for seven counts of conspiracy and fraud related to the crash of FTX, charges he firmly denies. Stay tuned to Cointelegraph for live coverage from our reporters on-site in New York as the case unfolds. The latest updates will be shared here. The magazine's exclusive: "SBF trial ongoing, Mashinsky trial pending, Binance market share dwindles: Hodler’s Digest, Oct. 1–7".
Published At
10/11/2023 9:32:29 AM
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