Crypto News- The bankrupt cryptocurrency exchange FTX is actively seeking information regarding the substantial donations it had previously made to the Center for AI Safety (CAIS).
Recently, new details came to light in a filing submitted on October 25 in a Delaware Bankruptcy Court. FTX’s legal team revealed that the exchange had made sizable donations amounting to $6.5 million to CAIS, a nonprofit organization dedicated to AI safety, from May to September 2022. Interestingly, this timeframe closely preceded FTX’s financial downfall, leading to the filing of bankruptcy.
FTX Investigates 6.5 Million Dollar Payments to Center for AI Safety
FTX is currently seeking the court’s authorization to issue subpoenas compelling CAIS to provide details about any payments, funds, communications, or agreements involving FTX, its affiliates, and former executives.
FTX alleges that CAIS has been uncooperative in responding to its requests for voluntary accounting regarding the financial transactions between the two entities. FTX also disclosed that there have been prior communications between the two organizations, including a phone call in August and emails in early October. The subpoena request is believed to be a crucial element of FTX’s broader strategy aimed at recovering funds to fulfill its obligations to creditors and customers adversely affected by its bankruptcy. In a report published in June, FTX indicated that it had managed to recover around $7 billion but asserted that an additional $1.7 billion was required to address customer funds it claims were misappropriated.
CAIS is notably recognized for its open position on AI-related risks, as articulated in a statement released in May. This statement advocates for the prioritization of AI extinction risks alongside other significant threats like nuclear war and has garnered endorsements from prominent figures in the field, including OpenAI CEO Sam Altman and Geoffrey Hinton, often referred to as the “Godfather” of AI.
The requested subpoenas from FTX are extensive, seeking a range of documentation, communications, and transfers received from various FTX entities, including FTX Philanthropy and the FTX Foundation. Furthermore, the subpoenas specifically target communications from FTX co-founders Sam Bankman-Fried and Gary Wang, as well as other key figures associated with the exchange.
As the legal proceedings unfold, this case is expected to provide insights into the financial transactions between FTX and CAIS. It has the potential to influence the bankrupt exchange’s efforts to recuperate funds and make amends to its creditors and customers.
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