In a stunning turn of events, a 5% stake in AI coding startup Cursor, which was sold by FTX's bankruptcy estate for $200,000 in April 2023, would now be valued at approximately $3 billion following SpaceX's acquisition deal at a $60 billion valuation. This development has brought attention to the significant losses incurred by FTX's estate due to the forced sale of assets during the bankruptcy process. The deal marks a strategic move by Elon Musk to bridge the gap with competitors in the AI coding tools space.
The crypto community is abuzz with the realization that the sale of the Cursor stake has resulted in a staggering 15,000x return, which could have been realized by FTX's creditors if the asset had been held rather than liquidated. This incident has reignited the debate about the handling of FTX's assets during the bankruptcy, with founder Sam Bankman-Fried arguing that the estate's actions destroyed billions of dollars in value. The timing of this revelation is particularly awkward for FTX's bankruptcy administration, as it underscores the potential consequences of liquidating assets too quickly. As the situation continues to unfold, it is likely that the Cursor stake will become a focal point in discussions about the estate's management and the potential for recovering lost value.