In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a fraction of its current valuation of $3 billion following SpaceX's recent acquisition agreement. This deal has brought attention to one of the largest missed recoveries in crypto history. SpaceX has agreed to acquire Cursor at a $60 billion valuation, with the option to buy the company later this year or pay a $10 billion breakup fee. 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.
After FTX's collapse, the court-appointed estate sold the stake for the same amount, resulting in a significant loss of potential recovery for creditors. The timing of the sale has raised questions about the bankruptcy administration's handling of assets, with Bankman-Fried arguing that the estate destroyed billions in value by liquidating assets too quickly. The case of the Cursor stake has become a prime example of the potential value that could have been realized if the assets had been held instead of sold. FTX customers have been repaid in full, but they did not benefit from the upside of the assets, including the significant increase in value of the Cursor stake.