FTX Ex CEO SBF Demands Answers as Key Evidence Disappears

FTX CEO’s defense in jeopardy as missing evidence raises doubts, while bankers eye cashing out AI startup shares amidst company turmoil.
FTX Ex CEO SBF Demands Answers as Key Evidence Disappears

Former FTX CEO, Sam Bankman-Fried, is asserting that prosecutors have failed to meet discovery deadlines, withholding crucial evidence required for his defense against a range of fraud charges. 

Bankman-Fried’s legal team recently informed United States District Judge Lewis A. Kaplan that in the letter, the government has not provided the contents of five electronic devices, including laptops belonging to former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang, which were due for discovery by the end of March.

Scheduled to appear in court on October 2, Bankman-Fried is facing allegations of fraud, illegal political donations, and bribery of the Chinese government. 

Despite his desire to proceed with the trial as planned, additional motions may be filed if the newly produced evidence gives rise to such actions, according to the letter.

The letter further states that the government has also failed to produce information related to FTX debtors. 

The delayed evidence, including approximately 1.1 million documents from the first four productions and an additional 2.5 million documents from the latest production received on May 25, significantly hampers the defense’s ability to adequately prepare for trial.

During the FTX crisis, bankers assigned to rescue the struggling company are reportedly considering cashing out shares in artificial intelligence (AI) startup, Anthropic, which has been generating significant hype. 

On June 6, it was revealed that investment banking firm Perella Weinberg, engaged by the bankrupt exchange, has been enticing potential investors with the sale of hundreds of millions of dollars worth of Anthropic shares.

FTX’s balance sheets, during its November 2022 bankruptcy, disclosed holdings of $500 million in Anthropic stock, which is now speculated to be worth considerably more due to the booming AI industry. 

Also Read: Metropolitan Museum of Art Returns $550K FTX Donations

Anthropic recently completed a successful Series C funding round, securing $450 million and attaining a reported valuation of $4.6 billion on May 23.

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