In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that has since skyrocketed to approximately $3 billion following SpaceX's acquisition agreement at a $60 billion valuation. This deal has brought attention to the significant gap between the initial sale price and the current value, with the difference representing a substantial missed recovery for FTX's creditors. The transaction is particularly notable given the timing, as it occurred during a period when FTX was undergoing bankruptcy proceedings and liquidating its assets. The company's founder, Sam Bankman-Fried, has argued that the estate's decision to sell assets too quickly resulted in the destruction of billions of dollars in value, a claim that is underscored by the dramatic increase in Cursor's valuation.
The SpaceX acquisition is seen as a strategic move by Elon Musk to enhance his company's AI capabilities and close the gap with competitors in the field. The deal has also sparked debate about the handling of FTX's assets during the bankruptcy process, with some arguing that the estate's decisions resulted in significant losses for creditors. As the situation continues to unfold, the Cursor stake is likely to remain a key point of discussion, particularly in the context of Bankman-Fried's ongoing advocacy for a pardon and his claims that the estate's actions led to the destruction of substantial value.