U.S Prosecutors Seek to Bar Asset Recovery Arguments in Sam Bankman-Fried's Anthropic Investment Trial
Summary:
U.S attorneys are requesting the court to disallow any arguments about potential asset recovery of FTX customers in Sam Bankman-Fried's trial. Bankman-Fried, who invested $500 million into AI startup Anthropic using alleged misappropriated FTX customer deposits, could see an increased investment value due to recent interest from large corporations. The U.S authorities anchor their indictment on accusations of Bankman-Fried committing wire fraud through misappropriation of customer deposits. Investigations are underway to find out how around $8 billion in FTX customer funds went missing.
US attorneys are urging the court overseeing the litigation against Sam Bankman-Fried, to prohibit his defense counsel from discussing any potential retrieval of FTX customers' resources that were invested in Anthropic. Bankman-Fried sunk $500 million into the AI startup in April of 2022. The American authorities are ready to introduce evidence indicating that Bankman-Fried made the investment in Anthropic using wrongfully acquired funds from FTX client accounts.
Recently, Anthropic has been a topic of interest in news stories as it aims to gather additional funding from investors, attracting major corporations like Amazon and Google, which might increase the company's worth to somewhere between $20 and $30 billion. US attorneys pointed out that recent stories on the possible skyrocketing worth of Anthropic would likewise enhance the value of Bankman-Fried's investment. This, in turn, could increase the potential recuperation for customers of FTX and other creditors involved in the FTX insolvency.
Correspondence sent to Judge Lewis Kaplan informed that those defending both the US government and Bankman-Fried have had discussions concerning a variety range of issues that could become part of the cross-examination of witnesses in court. Bankman-Fried's attorneys are prepared to show proof regarding the current price of the prior FTX CEO's $500 million investment in Anthropic. The prosecution think this evidence is being curated to suggest that FTX's customers and other victims could potentially be fully remunerated for their losses, a notion the court has previously labeled as “unacceptable”:
The federal authorities insist that their indictment of Bankman-Fried is based on accusations of wire fraud involving the use of FTX client funds for investments and other spending. They argue that any demonstration of investments, even those that could have proven profitable, are ultimately irrelevant to the charges against Bankman-Fried under consideration by the jury.
The American government contends that they intend to present evidence about Bankman-Fried's alleged misappropriation of customer deposits that led to substantial losses on FTX's financial records. However, they will not offer any proof concerning the final losses of victims once the FTX bankruptcy process concludes.
Ana Paula Pereira, a reporter for Cointelegraph, is in New York reporting on the Bankman-Fried case. The trial's initial week has been focused on determining how approximately $8 billion in FTX customer funds disappeared from the fallen cryptocurrency exchange.
Published At
10/9/2023 7:38:06 AM
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