– Forthcoming trial involving Sam Bankman-Fried and FTX
– Prosecutors want to prevent mention of AI startup Anthropic during the proceedings
– Anthropic reportedly secured billions in fundraising from Google and Amazon
– FTX creditors hopeful for financial recovery due to Bankman-Fried’s investment in Anthropic
– Prosecutors argue that any discussion of Anthropic in the trial should be restricted
– Assistant US Attorney Thane Rehn files motion to disallow Bankman-Fried from raising the topic
– Rehn references previous ruling by Judge Lewis Kaplan that intention to repay misappropriated funds is legally irrelevant
– Rehn highlights speculative nature of venture capital investments and FTX’s own valuation fluctuations
– Defense has not responded to the motion yet
– Trial to resume on Tuesday with cross-examination of Gary Wang and potential testimony from Caroline Ellison
– Wang testified last week, admitting to wire fraud and financial crimes
– Wang revealed that he and Bankman-Fried illegally withdrew $8 billion from FTX funds through Alameda Research
– Wang claimed Bankman-Fried directed these illicit actions
– He also stated that Alameda Research was allowed to withdraw unlimited funds and maintain negative balances and unlimited open positions
– Software developer Adam Yedidia testified that he left FTX when he discovered Alameda had used investor funds to pay off creditors.
1. Prosecutors Seek to Restrict Mention of AI Startup Anthropic
2. Defense Has Not Responded to the Prosecutors’ Motion
3. Wang Testifies Against Bankman-Fried, Admitting to Financial Crimes
Section 1: Prosecutors Seek to Restrict Mention of AI Startup Anthropic
Prosecutors are requesting that Sam Bankman-Fried not be allowed to mention his AI startup, Anthropic, in ongoing legal proceedings. This request comes after media reports revealed that Anthropic had secured billions in fundraising from Google and Amazon. Creditors of FTX, the cryptocurrency trading platform owned by Bankman-Fried, are optimistic about a financial recovery due to Anthropic’s investments. Despite this, the prosecutors argue that discussing Anthropic would be irrelevant and potentially misleading for the jury. They highlight the speculative nature of venture capital investments, pointing out that FTX’s own valuation has fluctuated, with its shares currently considered worthless.
Section 2: Defense Has Not Responded to the Prosecutors’ Motion
The defense in the case has not yet responded to the motion filed by the prosecutors. The trial is set to resume soon, with the cross-examination of Gary Wang, co-founder of Alameda Research and FTX. It is also possible that Caroline Ellison, former CEO of Alameda Research, may provide her first testimony. The prosecutors aim to prevent Bankman-Fried from mentioning Anthropic during the trial, citing Judge Lewis Kaplan’s previous ruling that the intention to repay misappropriated funds is legally irrelevant. They argue that discussing Anthropic would be immaterial and potentially confusing or prejudicial.
Section 3: Wang Testifies Against Bankman-Fried, Admitting to Financial Crimes
Gary Wang, former co-owner of Alameda Research and chief technical officer at FTX, testified in court and confessed to committing wire, securities, and commodities fraud. He revealed that he and Bankman-Fried engaged in illicit activities and deceitful practices that led to the collapse of FTX. Wang disclosed that they illegally withdrew $8 billion from FTX funds through Alameda Research, with Bankman-Fried directing these actions. He also stated that the duo allowed Alameda Research to withdraw funds from FTX without restrictions while misleading the public. This included maintaining negative balances and unlimited open positions, with the hedge fund having a line of credit totaling $65 billion. Earlier in the trial, a software developer who had worked for FTX testified that he left the company after discovering that investor funds were used to pay off creditors through Alameda.
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