Sam Bankman-Fried’s legal team has formally requested the court’s approval to introduce evidence regarding his investment in Anthropic, an artificial intelligence startup that recently secured additional funding. In a letter addressed to Judge Lewis A. Kaplan, Bankman-Fried’s legal representatives contend that the prosecution’s request to exclude any references to Anthropic in the case is misguided, asserting that it misconstrues the significance of the evidence.
The attorneys representing the founder of the defunct cryptocurrency exchange argue that information regarding the current value of Bankman-Fried’s investment in Anthropic holds direct relevance in countering the government’s initial claims and the testimony presented thus far, while also supporting his claim of acting in good faith.
Furthermore, Bankman-Fried’s legal team asserts that the prosecution has frequently raised concerns about Alameda’s venture investments during the trial, characterizing them as risky and unprofitable. In response, they argue that they should be allowed to present testimony from Caroline Ellison that clarifies the nature of venture capital investing as a portfolio endeavor. The substantial appreciation in Anthropic’s value since the previous year is cited as a crucial contextual factor, which relates to the testimony provided by Ms. Ellison concerning expected value analyses.
The Department of Justice, in its own filing on Sunday, contended that Bankman-Fried’s investment of approximately $500 million in Anthropic in 2022 was made using funds allegedly stolen from FTX customers. They maintain that evidence related to the current value of the defendant’s investments would only serve to support the argument that FTX customers and other victims might ultimately be compensated, an assertion that the court has deemed inappropriate.
Notably, Anthropic recently secured additional funding from Google and other investors, potentially elevating its valuation to around $30 billion, as reported by The Information. This significant valuation increase could potentially pave the way for a 100% asset recovery rate for FTX in the context of the cryptocurrency exchange’s bankruptcy proceedings, primarily due to Bankman-Fried’s substantial stake in the company, as noted by Kunchou Tsai, the managing partner of the Taiwan-based Enlighten Law Group, during an interview with The Block.