Weekend Filings in SBF’s Trial : $500M Anthropic Investment and $200M Alameda “Loan”
Over the weekend, the trial of FTX CEO Sam Bankman-Fried (SBF) continued to unravel. Central to the case are claims of misused customer deposits, notably a $500 million investment in AI startup Anthropic, and a contentious $200 million in loans from linked hedge fund, Alameda Research.
The U.S. government alleges that the funds invested in Anthropic in April 2022 were taken from FTX’s customer deposits. This investment caught the eye of tech giants like Amazon and Google, pushing Anthropic’s valuation towards a staggering $20-$30 billion mark. However, the prosecution wants to keep this investment out of the trial, fearing it could distract from the core issue by increasing the value of Bankman-Fried’s stake, and thus, the possible recovery for FTX’s customers.
On the other hand, the defense wanted to use the current valuation of Bankman-Fried’s Anthropic investment to show the potential for full compensation to the victims. But, this strategy was not allowed by the court. A motion has been filed requesting Judge Lewis A. Kaplan to bar any mention of Anthropic during the trial, emphasizing the speculative nature of such investments.
The story thickened with allegations of improper loans from Alameda Research. The prosecution is examining loans estimated between $200 million to $300 million, reportedly used for venture investments and a home purchase in the Bahamas. Amid this, Bankman-Fried plans to investigate the role of lawyers in structuring these loans, arguing their formalization through promissory notes as a sign of legitimacy.
The defense now seeks permission to question FTX co-founder Gary Wang on the involvement of FTX lawyers in these loan agreements. The case has highlighted the intertwined financial dealings between FTX and Alameda Research, with accusations of Bankman-Fried using transferred funds as his “personal piggy bank”.
As the trial is set to resume later today, Tuesday, Oct. 10, the courtroom awaits cross-examinations of Gary Wang and potentially the first testimony from Alameda Research ex-CEO Caroline Ellison. Both Wang and Ellison, having pleaded guilty, are cooperating with investigators, adding layers to the narrative.
