U.S. Prosecutors Aim to Sideline Asset Recovery Talks in Bankman-Fried Trial

blockchain.news:

The U.S. prosecution team has issued a formal request to the United States District Court, Southern District of New York, seeking to preclude the defense from introducing arguments or evidence concerning the current value of specific investments in the trial against Samuel Bankman-Fried, the erstwhile CEO of cryptocurrency exchange FTX. This request follows allegations that Bankman-Fried misappropriated FTX customer deposits for a substantial investment in the artificial intelligence startup Anthropic, an investment whose value might have significantly appreciated amid recent fundraising endeavors by Anthropic.

In a move that captured industry attention, Bankman-Fried invested an approximate amount of $500 million in Anthropic in April 2022. This investment is now under the legal microscope as the prosecution claims it was funded by misappropriated FTX customer deposits. The narrative gains complexity as Anthropic recently disclosed its attempts to secure additional capital from potential investors, including industry behemoths Amazon and Google, at a valuation ranging between $20 billion and $30 billion. The potential appreciation of Bankman-Fried’s investment could play a pivotal role in the recovery of assets for FTX customers and other creditors embroiled in the FTX bankruptcy scenario.

The crux of the prosecution's argument is to avoid any discussions in court regarding the increased valuation of Anthropic, suggesting that such discussions are aimed at proposing that FTX customers and other victims could eventually be compensated for their losses — a notion previously tagged by the court as an «impermissible purpose.» The government remains steadfast in its position that the focus should remain on the alleged wire