Anthropic: Ellison and Singh's Shares Sold by the State

The federal government has confiscated and then sold the Anthropic shares held by Caroline Ellison and Nishad Singh, former associates of Sam Bankman-Fried. Authorities remain silent on the use of the funds, as the valuation of the AI publisher has surged and estimates vary on what these shares were worth at the time of sale.

The proceeds from the sale remain confidential and not allocated to FTX

By the end of June this year, the revenues from the sale of Caroline Ellison and Nishad Singh's Anthropic shares did not appear to have been transferred to the FTX estate, according to its court filings. A representative from the Department of Justice indicated that information related to asset sales and victim compensation is confidential, and the Marshals Service declined to comment. Neither the exact timeline, the identity of the buyers, the selection process, the share price, nor the amount received by the state is publicly known. It remains uncertain whether the victims of the fraud, estimated at $11 billion, will benefit from these funds, or if the government will retain them. One victim, Sunil Kavuri, deemed the possibility of state retention "diabolical."

A DOJ-supervised restitution mechanism replaces traditional restitution

Given the potential number of victims reaching into the millions, prosecutors have secured a mechanism for restitution, overseen by the Department of Justice, to replace the usual judicial restitution. These prosecutors explained that the DOJ would establish its own claims administration system or cooperate with FTX's bankruptcy proceedings to identify victims and distribute confiscated funds. In Delaware, Sullivan & Cromwell has been appointed to manage the bankruptcy, inventory the assets, qualify the claims, and proceed with payments, with the creditors in the proceedings largely overlapping with the victims. Prosecutors also noted that the DOJ could collaborate with bankruptcy attorneys, as occurred in the Bernie Madoff case.

Seizure, transfer, and resale of shares to existing shareholders

A federal judge ordered the transfer of the Anthropic shares held by Caroline Ellison and Nishad Singh to the federal government. The state took possession of Ellison's shares in February 2025, followed by Singh's in April. The shares were then resold last year to existing shareholders of Anthropic, according to a source familiar with the operation. In terms of confiscations, private shares are generally entrusted to the Marshals Service's Complex Asset Unit for liquidation, which evaluates them as an investor would, questioning the price an institutional buyer would pay and the existence of a secondary market, according to attorney Michael Bachner. He specifies that the goal is to preserve as much value as possible. For attorney Duncan Levin, the framework remains largely discretionary and opaque, with the Department of Justice technically able to decide the fate of the seized assets.

Anthropic's soaring value and contrasting estimates

Anthropic was valued at $61.5 billion during a Series E round in March 2025, and then at $380 billion during a Series G round in early 2026. Successive rounds have diluted the Series B shares: according to the FTX estate, Sam Bankman-Fried's stake was 7.84% in January 2024, down from 13.56% in 2022. In the secondary market, a valuation of $1.5 trillion has circulated, and Crunchbase lists it as the most valuable private company in the world. Estimates of the value of Ellison and Singh's shares vary: Olav Sorenson suggests a range of $4.17 to $5.03 billion based on a valuation announced in May at $965 billion, while Harrison Rolfes estimates it at $2.62 billion. Rolfes indicates that at $2 trillion on the stock market, these shares would approach $5.44 billion. For 2025, Sorenson places the range between $300 million and $1.1 billion depending on the timing of the sale, while Rolfes estimates it between $250 million and $630 million. In this context, it is deemed likely that the buyers have realized a gain, and Anthropic is mentioned as a potential candidate for a record IPO.

Origin of the shares: investments and convictions related to FTX

In 2022, Sam Bankman-Fried, Nishad Singh, and Caroline Ellison participated in Anthropic's Series B round. Bankman-Fried invested $500 million, representing 13.56% of the company at the time, Singh $40 million, and Ellison $10 million. A judge later required Ellison and Singh to forfeit their shares, with prosecutors arguing that they could be considered proceeds of crime. Attorney Andrew Goldstein explained that Singh had purchased shares before joining the conspiracy, believing he had a legitimate legal claim, and nonetheless relinquished his rights as part of his plea agreement, hoping that victims would be compensated quickly. A representative for Ellison declined to comment. Convicted in 2023 of fraud and money laundering, Bankman-Fried was sentenced to 25 years in prison; prosecutors accuse him of siphoning billions through Alameda Research to the detriment of FTX customers. Bankman-Fried's stake in Anthropic was liquidated in bankruptcy, while some of his investments, including Anthropic and cryptocurrencies, have appreciated in value. Earlier in 2024, Sullivan & Cromwell attorneys anticipated full repayment to creditors, including interest.