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- The ongoing embezzlement case against FTX co-founder and former CEO Sam Bankman-Fried has taken an interesting twist that might influence the case in the final ruling.
- The judge has granted a motion barring the defense from mentioning the value of current investments made using FTX customer funds.
According to a court filing, the judge presiding over the fraud case against FTX co-founder and former CEO Sam Bankman-Fried has granted the motion by the prosecution barring Sam Bankman-Fried from introducing evidence or argument about the current value of certain investments made by the defendant. The prosecution has specifically singled out a $500 million investment in artificial intelligence company Anthropic.
The prosecution has argued that this investment was made using customer funds making such evidence irrelevant. Furthermore, the evidence would confuse the issues, mislead the jury, cause and undue delay. The court filing notes;
For the reasons stated on the record in open court, the government’s motion to preclude the defendant from introducing evidence or argument about the current value of certain investments made by the defendant is granted.
Interestingly, former head of engineering Nishad Singh, and former Alameda Research CEO Caroline Ellison were also investors in Anthropic. When questioned by the defense, Ellison stated she had invested in the AI company after SBF forced her to commit fraud, commingling customer funds.
As the case continues, it has been clear from the crypto community that there is little sympathy for SBF. In this case, billions are still missing and the trust of an untrusting community is broken.
Sam Bankman-Fried Seeks Delay in Trial
In a recent development, SBF’s defense has raised concerns about the defendant needing medication during the trial. As CNF reported, legal representatives of FTX founder, Sam Bankman-Fried, have formally petitioned Judge Lewis Kaplan. The plea, submitted on Sunday, is an urgent request to ensure that Bankman-Fried can access his prescribed medication, Adderall, during the trial. The defense emphasizes that the absence of this crucial medication severely impairs his concentration due to his attention-deficit hyperactivity disorder (ADHD).
Read More: FTX Founder Seeks Medication Access Amid Fraud Trial
Another positive development from the last couple of hours is that FTX Debtors have revealed a plan to repay creditors up to 90 percent of their locked funds. The plan if approved by the bankruptcy court will see repayments made in Q2 2024. This is expected to pave the way for a special shortfall claim for FTX customers, allowing them to recoup a significant portion of the global value involved.
