Lawyers representing Sam Bankman-Fried are looking to question former Alameda Research CEO Caroline Ellison about FTX’s financial ties to artificial intelligence startup Anthropic. The legal team aims to examine Ellison on details surrounding FTX’s investment stake in Anthropic, as part of their defense strategy for Bankman-Fried.
They also aim to probe the extent Ellison relied on legal counsel while leading Alameda, a crypto hedge fund tied to SBF’s now-bankrupt FTX exchange.
During the criminal fraud case against SBF, Ellison, who plays a crucial role in the case, testified on Tuesday that her recommendations regarding FTX investments were disregarded. In light of this testimony, SBF’s legal team is now seeking court approval to conduct a more thorough investigation.
In two key motions after Ellison’s testimony, the defense first addressed “advice-of-counsel.” Judge Lewis Kaplan had asked for notice if they wished to explore it.
The defense wants to question Ellison’s understanding of lawyers’ role in FTX and Alameda policies, including activating Signal message deletion.
Previously, the DOJ urged blocking discussion of current FTX investment valuations, arguing it was irrelevant to alleged customer fund misuse.
SBF’s team also contends recent Anthropic fundraising is a “crucial context” for assessing FTX’s value. They aim to raise broader investment portfolio questions.
Judge Kaplan engaged both sides on the appropriateness of these topics at trial. Ellison also personally holds an Anthropic stake, disclosed after the jury left.
Prosecutor Danielle Sassoon expressed reservations but openness to the questions if deemed relevant.
