In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a fraction of its current worth. With SpaceX's recent agreement to acquire Cursor at a $60 billion valuation, that same stake would now be valued at approximately $3 billion.
This significant increase in value has brought attention to the crypto aspect of the deal, particularly the investment made by Alameda Research, a trading firm founded by Sam Bankman-Fried, in Anysphere, the company behind Cursor. The investment, made in April 2022, purchased roughly 5% of the company at a $4 million valuation. However, after FTX's collapse and subsequent bankruptcy, the court-appointed estate sold the Cursor stake for the same $200,000 Alameda had initially paid. The substantial difference between the sale price and the current valuation has sparked debate, with some arguing that the estate's decision to liquidate assets too quickly may have resulted in significant losses for creditors.
This incident is likely to be cited by Sam Bankman-Fried, currently serving a 25-year federal sentence, as an example of the value destroyed by the estate's actions. The case highlights the complexities and challenges involved in managing and valuing assets during bankruptcy proceedings, particularly in the rapidly evolving crypto and AI landscapes.