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FTX Initiates Investigation Into $6.5 Million Payments to AI Safety Group

Bankrupt exchange FTX launches an investigation into $6.5 million payments to AI safety nonprofit CAIS as part of its fund recovery process.

FTX's Financial Probe

Bankrupt cryptocurrency exchange FTX is taking steps to investigate payments amounting to $6.5 million that it had previously disbursed to the Center for AI Safety (CAIS), a nonprofit organization specializing in artificial intelligence safety. This inquiry comes as part of FTX's efforts to recover and redistribute funds to its creditors and customers following its collapse in November 2022.

Request for Subpoenas

In an official court filing on October 25, FTX's legal representatives sought court approval to issue subpoenas to CAIS. The subpoenas would request information pertaining to the nature of the payments, the communications between the two entities, and any agreements or contracts that might have existed.

A Closer Look

CAIS, an AI safety organization recognized for advocating the prioritization of mitigating extinction risks posed by AI, issued a notable statement in May. This statement, signed by influential figures like OpenAI CEO Sam Altman and AI luminary Geoffrey Hinton, argued for the importance of addressing AI risks on par with concerns such as nuclear war.

Recovery Efforts

FTX has reportedly recovered approximately $7 billion of its assets but requires an additional $1.7 billion to reimburse customer funds it alleges were misappropriated. The investigation into its payments to CAIS may contribute to the recovery process.

Awaiting CAIS Response

As of now, CAIS has not issued an immediate response to the request for information. The outcome of the investigation could significantly impact the distribution of funds among FTX's creditors and customers.