In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that has skyrocketed to approximately $3 billion following SpaceX's acquisition agreement at a $60 billion valuation. This deal has brought attention to the significant gap between the original sale price and the current value, with the stake now being worth around $3 billion.
The investment was initially made by Alameda Research, a trading firm founded by Sam Bankman-Fried, in April 2022, with the company building Cursor. After FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a missed recovery of roughly $3 billion. This incident has sparked debate about the handling of FTX's assets during the bankruptcy process, with Bankman-Fried arguing that the estate's liquidation of assets too quickly destroyed billions in value. The timing of the SpaceX deal has also raised questions about the estate's decision to sell the stake, with some suggesting that holding onto it could have resulted in a significantly higher return.
The case has drawn attention to the complexities of bankruptcy proceedings and the potential consequences of selling assets too quickly, highlighting the need for careful consideration and strategic decision-making in such situations.