- Sullivan & Cromwell, the lead legal counsel to FTX, admitted AI-generated errors in a court filing.
- SBF blasted FTX debtors for selling most of the estate’s Anthropic stake for $884 million.
- He claimed the shares were sold at a “98% discount” as Anthropic valuations surged.
Sam Bankman-Fried attacked the FTX bankruptcy team after they sold two-thirds of FTX’s stake in AI firm Anthropic, while the same law firm handling parts of the case admitted it filed AI-generated legal errors in court.
In a post on X, the former FTX CEO wrote:
“FTX Debtors: AI is ‘just… an idea—nothing’ so let’s sell 8% of Anthropic at a 98% discount. Also, FTX Debtors: let’s outsource $2k/hour work to AI.”
The remarks target both the Anthropic share sale and lead legal adviser Sullivan & Cromwell.
Anthropic Stake Sale Drew Fresh Criticism
In March 2024, the FTX bankruptcy estate agreed to sell most of its Anthropic holdings for roughly $884 million.
The deal covered around two-thirds of FTX’s stake. Buyers included ATIC Third International Investment Company and Jane Street Global Trading.
The sale was a key source of cash for customer repayments after FTX collapsed in November 2022. The Anthropic position had originally been bought in 2021 for about $500 million under Bankman-Fried.
Since then, Anthropic’s valuation rose sharply during the AI boom, making the shares one of the most valuable assets left inside the FTX estate.
Bankman-Fried’s complaint is that the estate was sold too early and below future upside. His “98% discount” claim appears aimed at later private-market valuations tied to AI demand, not the actual cash value received in the 2024 transaction.
Related: FTX Estate Plans 2025 Payouts At 2022 Prices, Giving SBF An Opening To Blame Lawyers
Sullivan & Cromwell Admits AI Errors in Court Filing
The timing of SBF’s post came after Sullivan & Cromwell apologized to a federal judge over a filing that contained false citations and other AI-generated mistakes.
In an April 18 letter to Chief US Bankruptcy Judge Martin Glenn in Manhattan, partner Andrew Dietderich said the filing included AI “hallucinations.”
Those errors included fake case names, made-up quotes, and non-existent parts of the US Bankruptcy Code. The mistakes were identified by Boies Schiller Flexner, another firm involved in the case.
Dietderich wrote that internal AI policies were not followed. He also said a second review process failed to catch the errors before filing.
Sullivan & Cromwell has more than 900 lawyers and is one of the top Wall Street firms. SBF’s jab at “$2k/hour work” referred to elite law firm billing rates while using AI tools that still required human checks.
SBF Withdraws New Trial Motion
At the same time, Bankman-Fried has withdrawn his motion for a new trial in New York.
In a filing to Judge Lewis Kaplan, he said he did not expect a fair hearing and wanted to withdraw the Rule 33 motion without prejudice. This leaves room to refile later after his direct appeal and request for reassignment are decided.
He also said he personally created much of the motion, drafted versions himself, and did legal research while jailed in Brooklyn.
According to the filing, his lawyers only made editing and organizational suggestions and helped print the papers because he did not have access to a word processor.
Related: Google Says AI Now Generates 75% of Its New Internal Code
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