In April 2023, FTX's estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that would now be worth approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. This staggering difference in value has brought attention to the crypto angle, as Alameda Research, founded by Sam Bankman-Fried, initially invested $200,000 in Anysphere, the company behind Cursor, in April 2022. The investment, which bought around 5% of the company at a $4 million valuation, was sold by FTX's estate for the same amount a year later, following the collapse of FTX.
The significant gap between the sale price and the current valuation has sparked debate, with Bankman-Fried arguing from prison that FTX's estate destroyed billions in value by liquidating assets too quickly during the bankruptcy. The timing of the sale has also raised questions, as FTX customers have since been repaid in dollar terms under the bankruptcy's distribution plan, but did not receive the upside from the assets' subsequent increase in value. The example of the Cursor stake is likely to be used by Bankman-Fried and his family to advocate for a pardon, highlighting the potential value that could have been realized if the estate had held onto the assets.