In April 2023, FTX's estate sold a 5% stake in AI coding startup Cursor for $200,000, a investment that would now be valued at approximately $3 billion 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 creditors due to the estate's decision to liquidate assets during the bankruptcy process. The acquisition 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 deal has also sparked debate about the timing of the sale, with some arguing that the estate's decision to sell the stake at a low price has resulted in a substantial loss of potential revenue for FTX's creditors.
This incident has been cited by Sam Bankman-Fried, the founder of FTX, as an example of the estate's failure to maximize recoveries for creditors, and is likely to feature in ongoing discussions about the company's bankruptcy and the treatment of its assets.