The value of a 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, would be approximately $3 billion today, following SpaceX's agreement to acquire the company at a $60 billion valuation. This development has brought attention to the significant losses incurred by FTX's estate due to the sale of its assets during bankruptcy proceedings. The deal is part of Elon Musk's efforts to enhance SpaceX's AI capabilities, particularly in the area of AI coding tools, where the company currently lags behind competitors.
The acquisition is expected to take place later this year, with SpaceX having the option to purchase Cursor for $60 billion or pay a $10 billion breakup fee if the deal does not proceed. The crypto aspect of this transaction involves Alameda Research, a trading firm founded by Sam Bankman-Fried, which invested $200,000 in Anysphere, the company behind Cursor, in April 2022. This investment, which represented a 5% stake in the company at a $4 million valuation, was sold by FTX's estate for the same amount in 2023, resulting in a missed opportunity for recovery.
The significant disparity between the sale price and the current value of the stake has sparked debate about the management of FTX's assets during its bankruptcy. Sam Bankman-Fried, currently serving a 25-year federal sentence, has argued that the estate's decision to liquidate assets too quickly destroyed billions of dollars in value, and that customers could have received greater compensation if the assets had been held rather than sold. The case of the Cursor stake, which has increased in value by approximately 15,000% since its sale, has become a prime example of the potential losses incurred by FTX's estate.
While FTX customers have been repaid in full, they did not benefit from the appreciation in value of the assets sold during the bankruptcy proceedings, including the Cursor stake, which is now worth $3 billion.