Future

Million

Foundation

Safety

FTX, the crypto exchange currently undergoing bankruptcy proceedings, is making efforts to reclaim millions of dollars in payments it disbursed to a nonprofit organization known as the Center for AI Safety (CAIS). 
According to documents filed in bankruptcy court on October 25, FTX alleges that it provided CAIS with $6.5 million in payments between May and September 2022, just months before the exchange’s financial collapse and subsequent declaration of bankruptcy. 
FTX is now seeking approval from a Delaware Bankruptcy Court judge to issue subpoenas to CAIS in order to investigate whether the organization indeed received these payments. 
The subpoenas are intended to inquire about any payments, funds, communications, agreements, or contracts that may have transpired between CAIS, FTX, its affiliates, and former executives. 
FTX asserts that CAIS declined to cooperate voluntarily by providing an accounting of the received funds, despite attempts at communication, including a phone call in August and email exchanges in early October. As of now, CAIS has not responded to requests for comment. 
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This move by FTX to investigate CAIS is seen as part of its broader strategy to recover funds that can be used to repay the exchange’s creditors and customers who were adversely affected by its collapse in November 2022. 
In a June report, FTX disclosed that it had successfully recovered approximately $7 billion and needed an additional $1.7 billion to cover customer funds it alleges were mishandled. 
CAIS gained notable recognition for its public stance on AI risk, particularly its published statement in May, which emphasized the importance of addressing existential threats posed by AI alongside concerns such as nuclear war. 
The statement garnered support from prominent figures, including OpenAI CEO Sam Altman and AI pioneer Geoffrey Hinton. 
FTX’s subpoenas request a broad range of documents and communications from CAIS, encompassing transfers, records, and correspondences associated with not only FTX but also its philanthropic arms, the FTX Foundation and the FTX Future Fund. 
The request extends to officers, directors, contractors, and employees of FTX, including co-founders Sam Bankman-Fried and Gary Wang, as well as other key individuals like Joseph Bankman, Gabriel Bankman-Fried, Caroline Ellison, Can Sun, and Daniel Friedberg, among others. 
<a href="https://www.cryptointelligence.co.uk/crypto-intelligence-blockchain-council/">Discover the Crypto Intelligence Blockchain Council</a>

FTX Pursues Investigation into $6.5 Million Payments to AI Safety Nonprofit CAIS Amid Bankruptcy

Crypto Intelligence

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