In April 2023, FTX's estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that has skyrocketed to approximately $3 billion following SpaceX's acquisition agreement. This development has brought attention to the significant losses incurred by FTX's creditors due to the estate's decision to liquidate assets during the bankruptcy process.
The acquisition is part of Elon Musk's efforts to enhance SpaceX's capabilities in AI coding tools, an area where the company currently lags behind competitors. The deal has sparked controversy, particularly given the substantial difference between the initial sale price and the current valuation, with some arguing that the estate's decision to sell the stake prematurely has resulted in a substantial loss of potential recovery for FTX's creditors.
This incident has also been cited by Sam Bankman-Fried, the founder of FTX, as an example of the estate's mishandling of assets during the bankruptcy process, which he claims has destroyed billions of dollars in value.