The Secret Sale: How the US Government Handled Seized Stake in AI Unicorn Anthropic
A recent stock transaction involving the coveted AI startup Anthropic has drawn scrutiny, not for its venture capital origins, but for its opaque handling by the US government. The assets at the center of this deal were seized, not invested.
The Confiscated Fortune
The story begins with the collapse of the FTX cryptocurrency exchange. The Anthropic shares sold by the government were originally held by two close associates of FTX co-founder Sam Bankman-Fried: former Alameda Research CEO Caroline Ellison and former FTX Director of Engineering Nishad Singh.
They invested $10 million and $40 million, respectively, in an early funding round for Anthropic. As the company's valuation soared into the tens of billions, these stakes became enormously valuable. Estimated to be worth between $4.17 billion and $5.03 billion at Anthropic's ~$96.5 billion valuation, their potential value could exceed $5.44 billion if the company goes public at a higher valuation.
A Shadow Over the Proceeds
The government's sale, however, is shrouded in mystery. Two critical questions remain unanswered: exactly how much money was raised, and where is it now?
Available information suggests proceeds between $250 million and $1.1 billion—a vast range. The Department of Justice (DOJ) has not disclosed the final sale price or the buyer's identity. More importantly, this substantial sum has not yet been transferred into the FTX bankruptcy estate, as would be expected.
Victim Compensation Hits a Roadblock
This lack of clarity directly impacts the millions of victims of the FTX collapse. Sunil Kavuri, a representative for the FTX Victims Committee, has publicly called for the government to use the sale proceeds to compensate victims, representing a crucial potential source of recovery.
In response, the DOJ stated that providing compensation to victims is a "priority." Yet, this assurance lacks a concrete timeline or detailed plan for transferring the funds. This has done little to assuage concerns among victims and legal observers, who fear the money could be tied up in bureaucratic processes or diverted to other governmental priorities.
Unresolved Challenges
This case highlights potential transparency and efficiency issues when governments handle seized, high-value digital assets linked to major financial crimes. Disposing of volatile, complex assets like private company shares and returning the proceeds fairly to victims presents a novel legal and logistical challenge.
All eyes are now on the DOJ's next move. Victims are waiting for more than promises; they seek tangible progress. The final destination of these hundreds of millions of dollars will serve as a key test of the US system for recovering and returning assets from financial crimes.