SBF’s Legal Time Seeks to Cross Examine Caroline Ellison Over FTX’s Anthropic Investment

FTX Sam Bankman-Fried
Last updated:
Author
Jai Pratap
Author Categories
About Author

Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: @carolinecapital / Twitter

Sam Bankman-Fried’s defense team is preparing to question Caroline Ellison, the former CEO of Alameda Research, over FTX’s investment in AnthropicAI.

The line of questioning would also center around the extent to which Ellison relied on legal counsel when making pivotal decisions during her tenure as the head of Alameda Research, a crypto hedge fund closely linked to SBF’s now-bankrupt FTX crypto exchange.

Ellison, a central figure in the criminal fraud case against SBF and his former romantic partner, took the witness stand on Tuesday. 

During her testimony, she asserted that her advice regarding FTX’s investment portfolio had been disregarded. 

In response, SBF’s legal team is seeking permission from the court to delve into these allegations further.

Defense Seeks to Establish SBF Followed Council’s Advice

Two critical motions were filed by SBF’s legal team following Ellison’s initial testimony. 

The first motion seeks to address the matter of “advice-of-counsel,” a topic Judge Lewis Kaplan had previously highlighted for advance notification should the defense wish to explore it. 

The defense is keen to probe Ellison’s understanding of the role played by lawyers associated with FTX and Alameda in formulating corporate policies, including the activation of auto-deletion features on the messaging platform Signal.

The Department of Justice (DOJ) had previously urged the court to block SBF’s defense from broaching the current valuation of FTX’s investments, arguing that it was irrelevant to the core question of whether Bankman-Fried had misappropriated FTX customer funds for personal use. 

SBF’s Lawyers Request to Bring Up Anthropic Investment 

As reported earlier, the recent fundraising initiatives announced by the artificial intelligence firm, Anthropic AI, raised hopes that FTX creditors may witness more substantial returns if the insolvent exchange liquidates its stake in the AI company.

In their second motion, SBF’s legal team contends that the news concerning Anthropic AI is “crucial context” for evaluating FTX’s expected value analysis. 

They aim to pose broader questions concerning FTX’s investment portfolio in light of this development.

At the conclusion of the court session, Judge Lewis Kaplan engaged in a dialogue with the attorneys regarding the appropriateness of raising these issues during the trial. 

Ellison also holds a personal stake in Anthropic AI, a fact disclosed by a U.S. attorney after the jury exited the courtroom. 

The prosecutor, Danielle Sassoon, expressed reservations about the permissibility of this line of questioning but indicated a willingness to explore it if the court deemed it relevant.

More Articles

Blockchain News
Fed Chair Powell Supports Clear Guidelines for Stablecoin Regulation
Hongji Feng
Hongji Feng
2025-02-11 21:44:26
Price Analysis
Institutional Money Pours In as Solana’s Growth Accelerates – Can SOL Overtake Bitcoin?
Michael Davis
Michael Davis
2025-02-11 21:33:10
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors