In April 2023, FTX's estate sold a 5% stake in AI coding startup Cursor for $200,000, a decision that has become one of the largest missed recoveries in crypto history. Following SpaceX's agreement to acquire Cursor at a $60 billion valuation, the same stake would now be worth approximately $3 billion. This significant increase in value has brought attention to the estate's handling of assets during the bankruptcy process. SpaceX's acquisition is part of Elon Musk's efforts to close the gap with competitors in AI coding tools.
The deal has also raised questions about the timing of the sale, with some arguing that the estate could have realized a much higher value if it had held onto the stake. The case has been cited by Sam Bankman-Fried, currently serving a federal sentence, as an example of the value destroyed by the estate's liquidation of assets during the bankruptcy process.