The defunct FTX crypto exchange has halted the sale of a stake in AI startup Anthropic. FTX had previously invested $500 million in Anthropic.
Collapsed crypto exchange FTX has halted the sale of AI startup Anthropic, according to reports. The company is focused on AI, which has grown in value in recent months.
FTX Anthropic Sale Deal Falls Through
The boutique investment bank that is advising FTX, Perella Weinberg Partners, told bidders that the sale would not take place. Many bidders have come forward to purchase the startup as the AI space is heating up with interest.
FTX collapsed in early November 2022 following media reports regarding the exchange’s insolvency concerns. Check out our in-depth analysis of the Sam Bankman-Fried-led crypto empire meltdown to learn more: FTX Collapse Explained: How Sam Bankman-Fried’s Empire Fell
This is perhaps the reason why FTX has halted the sale, though there is no confirmation on this matter.
Former OpenAI employees founded Anthropic in 2021, which currently has a $4.6 billion valuation. According to information from just before the bankruptcy incident, FTX and Alameda had invested $500 million in it.
The startup has an AI bot called Claude, and the funding would have focused on developing this tool.
Judge Upholds Charges Against Bankman-Fried
The judge presiding over the case has upheld most of the criminal charges, some of which Bankman-Fried sought to have dismissed. In total, there are 13 counts, and the judge stated in a filing that the defendant’s motions are denied.
It also dismisses the request for the prevention of additional discovery, among other matters.
The court will address charges over two separate trials, starting in October 2023 and March 2024. The judge explained the decision as follows,
“Dismissal of charges ‘is an “extraordinary remedy” reserved only for extremely limited circumstances implicating fundamental rights. The Second Circuit has deemed dismissal an ‘extreme sanction’ that has been upheld ‘only in very limited and extreme circumstances,’ and should be ‘reserved for the truly extreme cases,’ ‘especially where serious criminal conduct is involved.’”
Damning Revelations Surface
On top of the Anthropic development, there have been multiple revelations related to FTX and Sam Bankman-Fried. On June 27, the new CEO of the exchange stated that FTX managed to gain $400 million in funding after Bankman-Fried and an attorney invented “sham agreements.”
John J Ray III stated in a filing that the agreement was created to “provide an ‘explanation’ for why Alameda held ‘FTX cash . . . for the benefit of the FTX customers.’”
In other news, Bankman-Fried was also reportedly involved in a crypto trading MasterClass months before the exchange collapsed.
Moreover, another lawsuit alleged that he spent millions on celebrity connections to add to the criticism of his behavior.
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