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    Home»Money»The Feds Seized Anthropic Shares and Cashed Out Way Too Early
    Money

    The Feds Seized Anthropic Shares and Cashed Out Way Too Early

    Press RoomBy Press RoomOctober 27, 2026No Comments4 Mins Read
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    Last year, the federal government made a windfall of $627 million when it sold Anthropic shares it had seized from associates of crypto fraudster Sam Bankman-Fried.

    If it had held on to that stake, its windfall could have been a lot bigger.

    Business Insider previously reported that the federal government last year sold shares of Anthropic that had belonged to Caroline Ellison and Nishad Singh, two executives at Bankman-Fried’s now-defunct companies.

    Anthropic’s S-1 filing on Monday revealed how much the federal government made from the sale of their shares. The prospectus doesn’t name Ellison and Singh specifically. It says the government in October 2025 sold 4,453,900 Series B shares of Anthropic that “had been forfeited by former holders in legal proceedings to which we were not a party.”

    The figure matches up exactly with the combined $50 million in shares that Singh and Ellison purchased for $11.2261 each in Anthropic’s 2022 fundraising round, and later forfeited to the government.

    The shares represent about a quarter of a percent of Anthropic today. But given the company’s explosive growth, they are still worth a fortune.

    Anthropic hasn’t yet announced the stock price for its expected November initial public offering. At a $1.5 trillion valuation, the shares would be worth a total of about $3.94 billion. That would be six times as much as the government sold the shares for a year ago.

    The feds’ stake in Anthropic

    How the federal government came to own a chunk of Anthropic in the first place is a story involving a notorious fraudster and a complicated criminal forfeiture process.

    Bankman-Fried participated in Anthropic’s 2022 Series B fundraising round with Singh and Ellison. Singh purchased $40 million of the Series B shares, and Ellison acquired $10 million.

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    Add BI in Google so our reporting is easier to find when you’re searching for what matters.

    Singh and Ellison later pleaded guilty to crimes related to their work with Bankman-Fried and testified against him at his Manhattan federal criminal trial. The jury found Bankman-Fried guilty, and a judge sentenced him to 25 years in prison. The federal government took ownership of Singh’s and Ellison’s Anthropic shares by April 2025.

    The US Marshals Service sold Singh’s and Ellison’s shares, rather than hold on to the red-hot Anthropic stock, Business Insider previously reported. The US Marshals Service Complex Assets Unit is typically tasked with dispensing shares of private companies acquired through criminal forfeiture.

    Now we know that Anthropic purchased the stock from the feds in October 2025 at the price of $140.9676 per share, which is the same price Anthropic set for its Series F-1 stock in a fundraising round a month earlier.

    Anthropic resold the shares to nine investors at the same $627 million total price it paid to purchase them from the federal government, so it didn’t make a profit from the sale, according to the S-1 filing. It’s not clear which nine investors purchased the shares originally owned by Singh and Ellison. Representatives for the US Marshals Service didn’t immediately respond to a request for comment.

    The Anthropic shares owned by Ellison and Singh took a different path than the $500 million in Series B shares owned by Bankman-Fried himself. His shares ended up as part of FTX’s bankruptcy estate, which sold them in 2024 to a few dozen buyers for a total of $1.3 billion.

    The proceeds went to repaying creditors, including FTX customers and investors who had been scammed by the former crypto wunderkind.

    During Singh’s and Ellison’s sentencing hearings, Justice Department prosecutors told the federal judge overseeing their criminal cases that it would use the proceeds from the sale of Ellison’s and Singh’s Anthropic shares to compensate victims through a procedure called remission. The federal government would either establish its own claims administration process or work with the FTX bankruptcy process to identify victims and provide forfeited funds to them.

    A Justice Department spokesperson told Business Insider it “used funds from these forfeitures in remission,” as a prosecutor said it would during Singh’s and Ellison’s sentencing hearings.

    “One of the Justice Department’s top priorities is returning forfeited funds to victims through the asset forfeiture program whenever the law allows,” the spokesperson said.

    This story has been updated with a statement from the Justice Department.

    Have a tip? Contact this reporter at jshamsian@businessinsider.com or on the secure messaging app Signal at JacobShamsian.07. Here’s our guide to sharing information securely.

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