In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that would now be approximately $3 billion following SpaceX's acquisition deal at a $60 billion valuation. This deal has brought attention to the significant gap between the initial sale price and the current worth, with SpaceX agreeing to either purchase Cursor for $60 billion or pay a $10 billion breakup fee. The company's plans for an initial public offering, targeting a $2 trillion valuation, have led to a delay in the acquisition. The investment in Cursor was initially made by Alameda Research, a trading firm founded by Sam Bankman-Fried, in April 2022 for $200,000, representing a 5% stake in the company at a $4 million valuation.
After FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a missed opportunity for creditors. This incident has sparked debate, particularly from Bankman-Fried, who argues that the estate's decision to liquidate assets too quickly destroyed billions in value, and that customers could have received more if the process had been handled differently.
The significant increase in Cursor's valuation since its AI coding product launch in 2023 has further emphasized the potential value that could have been realized. While FTX customers have been repaid in full, they did not receive the upside from the assets' increased value, including the $3 billion potential from the Cursor stake.