FTX probes $6.5M in payments to AI safety group amid clawback crusade

Bankrupt crypto exchange FTX is aiming to demand details on countless dollars in payments it had actually previously given to a not-for-profit AI security company– the Center for AI Safety (CAIS). In an Oct. 25 personal bankruptcy court filing, the attorneys helming FTX claimed the firm gave $6.5 million to CAIS in between May and September 2022– months before the crypto exchange collapsed and declared bankruptcy.FTX wants a Delaware Bankruptcy Court judge to approve issuing subpoenas to CAIS that query if it got payments, funds, interactions or participated in contracts or agreements with FTX, its affiliates and previous executives.Highlighted excerpt of FTXs filing describing its proposed demand. Source: KrollThe exchange declares CAIS rejected “demands to willingly provide an accounting associated to the transfers” and the 2 companies had an August call and e-mails in early October.CAIS did not right away react to a demand for comment.FTXs request to penetrate CAIS is most likely part of its efforts to recuperate funds to repay its lenders and clients captured in its collapse in November 2022. In a June report, FTX said it had recuperated around $7 billion and needed another $1.7 billion to cover client funds it alleges were misappropriated.Related: Will Sam Bankman-Fried fix his case when he takes the stand?CAIS is most likely best known for an open statement on AI threat released in May, which stated mitigating extinction risks from AI ought to be focused on alongside nuclear war. The declaration was signed by multiple prominent figures consisting of OpenAI CEO Sam Altman and the “Godfather” of AI Geoffrey Hinton.FTXs proposed subpoenas request that CAIS produce a selection of documents, transfers and communications it got from FTX, FTX Philanthropy, the FTX Foundation, the FTX Future Fund “or any officer, director, worker or contractor” of FTX.It likewise requests communications specifically from co-founders Sam Bankman-Fried and Gary Wang, Bankman-Frieds father Joseph Bankman and brother Gabriel Bankman-Fried, previous Alameda Research CEO Caroline Ellison and former FTX attorneys Can Sun and Daniel Friedberg, among others.Magazine: Deposit threat: What do crypto exchanges actually make with your money?

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