The FTX bankruptcy estate sold a 5% stake in Cursor for $200,000 in April 2023.
Summary
- FTX estate sold its 5% Cursor stake for $200K during bankruptcy asset liquidation in 2023.
- Cursor’s $60B SpaceX-linked valuation now puts the former FTX stake near $3B in value.
- The sale has renewed scrutiny over FTX estate asset sales and missed upside from early exits.
The sale matched the original amount Alameda Research invested in Anysphere, the company behind Cursor, in April 2022.
The stake has drawn fresh attention after Cursor’s reported valuation rose sharply. SpaceX said it secured the right to acquire Cursor later this year at a $60 billion valuation.
At a $60 billion valuation, the former FTX-linked stake would be worth about $3 billion. That marks a large difference from the $200,000 sale price recorded during bankruptcy asset liquidation.
The new valuation came after SpaceX secured acquisition rights tied to Cursor. SpaceX could also pay a $10 billion breakup fee if the transaction does not move forward.
Bankruptcy sales face renewed review
The Cursor sale has added to questions over how the FTX estate handled early asset sales. The estate moved to liquidate assets after FTX collapsed and Alameda entered bankruptcy.
Sam Bankman-Fried has criticized the bankruptcy process from prison. Earlier this year, he wrote, “FTX was never bankrupt. I never filed for it.” He also claimed, “The lawyers took over the company and 4 hours later, they filed a bogus bankruptcy so they could pilfer it for money.”
FTX creditors have since received repayments in dollar terms under the restructuring plan. The repayments included claim values plus interest, though some former users have argued they missed gains from crypto and venture assets.
Bull Theory estimates wider missed value
Financial research platform Bull Theory estimated that assets sold early by the FTX estate could now be worth about $114 billion if held through recent market cycles. The analysis listed Anthropic, SpaceX, Solana, Robinhood, Genesis Digital, and Cursor among the missed gains.
Bull Theory wrote, “SBF was a genius at picking generational winners and a criminal at managing their money.” The platform also noted that the estate recovered about $18 billion for users.
Bankman-Fried is serving a 25-year federal sentence after his conviction on fraud and conspiracy charges. Prosecutors said he misused billions of dollars in customer funds from FTX through Alameda Research, investments, political donations, and personal spending.
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