The feds seized a stake in Anthropic from Sam Bankman-Fried's friends. What happened to the shares?
The U.S. government seized and sold shares of AI company Anthropic that were previously owned by Sam Bankman-Fried's associates, Caroline Ellison and Nishad Singh. It remains unclear whether the proceeds from the sale will be used to compensate victims of the FTX fraud.
Why it matters
The situation highlights the legal complexities of asset forfeiture involving high-growth private companies and the potential for significant financial recovery for fraud victims.
Two associates of Sam Bankman-Fried invested in Anthropic. After they were sentenced for fraud, their shares entered a legal black hole. ANGELA WEIS/Getty Images; Tyler Le/BI Sam Bankman-Fried's Anthropic stake was liquidated in bankruptcy court two years ago. The feds seized shares belonging to two co-conspirators, Caroline Ellison and Nishad Singh. The government quietly sold those Anthropic shares last year. It's unclear where the money will go. A little over a year ago, the federal government acquired a stake in Anthropic without paying a penny. The shares were seized from associates of the crypto fraudster Sam Bankman-Fried . From there, they disappeared into a legal black hole. As Anthropic rockets toward what could be the biggest IPO in history , those shares could now be worth billions of dollars. Bankman-Fried's own Anthropic stake was liquidated in the bankruptcy of his failed cryptocurrency exchange.
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