A 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, would now be worth approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. This development comes as SpaceX, led by Elon Musk, aims to close the gap with competitors in the AI coding tools space.
The deal has brought attention to the crypto aspect, as Alameda Research, founded by Sam Bankman-Fried, initially invested $200,000 in Anysphere, the company behind Cursor, in April 2022. The investment represented a 5% stake at a $4 million valuation. After FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a significant missed recovery opportunity for creditors.
This incident has sparked debate, particularly given Bankman-Fried's argument that the estate's rapid asset liquidation destroyed billions in value, and that customers could have received more if the process had been handled differently. The Cursor stake's valuation increase represents a 15,000x return, which was realized by the buyer rather than the creditors.
This event may feature prominently in discussions about the handling of FTX's assets and the potential for a pardon for Bankman-Fried, who is currently serving a 25-year federal sentence.