DOJ Pushes to Stop SBF’s Testimony on FTX’s Anthropic Stake

SBF should be barred from introducing FTX’s $500 million investment on Anthropic AI during trial, according to the DOJ.

DOJ- Michael E. Horowitz concerned about FTX history with Sam Bankman.
Created by Kornelija Poderskytė from DailyCoin
  • The DOJ has filed to block SBF from bringing up certain FTX investments in court.
  • The prosecution argued that the success of prior FTX investments is irrelevant to SBF’s case.
  • The DOJ’s filing comes as a response to SBF’s intention to introduce FTX’s investment in Anthropic as evidence.

Prosecutors in the ongoing Sam Bankman-Fried (SBF) criminal trial want the fallen crypto mogul to be precluded from raising certain issues as part of his witness testimony in court.

On October 8, the U.S. Department of Justice (DOJ) wrote to Judge Lewis A. Kaplan, asking the court to stop Bankman-Fried from introducing new evidence or arguments about the current value of certain investments he made while at the helm of the now-bankrupt crypto exchange FTX.

FTX’s Stake in Anthropic AI

In the letter, the prosecution side acknowledged that SBF invested approximately $500 million in Anthropic AI in April 2022, a stake that is anticipated to grow in value if the AI startup succeeds in its rumored $20 billion – $30 billion funding drive, which has reportedly attracted the likes of Amazon and Google.

According to the prosecutors, the current value of FTX’s stake in Anthropic, even in anticipation of the new funding, is irrelevant to SBF’s trial.

“Nor would it be a defense to the charges in this case if the defendant invested stolen FTX money believing that the investments would ultimately be so lucrative that he could pay back the stolen money,” the court filing read.

The prosecutors affirmed that the risk of admitting Anthropic’s current value as evidence before the court outweighs any probative value to the testimony, arguing that it would lead to unfair prejudice, cause undue delay, confuse the facts, or mislead the jury.

When SBF Could Introduce the Anthropic AI Case

The government argued that SBF could only introduce the evidence on Anthropic AI if he intended to demonstrate that FTX customers and other victims would eventually be made whole, an approach that the court had already deemed impermissible in a recent in limine ruling.

Stay updated on how SBF’s trial went down on the fourth day:
Dramatic Fourth Day in SBF Trial Reveals Extent of FTX Fraud

Read why the DOJ is charging SBF despite a crypto law void in the U.S.:
DOJ Validates Bankman-Fried’s Charges Despite Crypto Law Lacuna

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.