The recent agreement between SpaceX and Cursor has brought attention to a notable instance of a missed recovery in crypto history. In April 2023, FTX's bankruptcy estate sold its 5% stake in Cursor for $200,000, a stake that would now be worth approximately $3 billion following SpaceX's acquisition deal. This significant disparity has sparked discussion about the handling of FTX's assets during its bankruptcy. SpaceX's decision to acquire Cursor at a $60 billion valuation is seen as a strategic move by Elon Musk to enhance his company's AI coding capabilities.
The deal allows SpaceX to either purchase Cursor for $60 billion later this year or pay $10 billion if the acquisition does not proceed. Meanwhile, FTX's estate sold its stake in Cursor for the same amount it was initially invested, resulting in a substantial loss of potential recovery for the estate's creditors.
This incident has been cited by Sam Bankman-Fried, the founder of FTX, as an example of the estate's alleged mishandling of assets during the bankruptcy process. Bankman-Fried has argued that the estate's decision to liquidate assets too quickly destroyed billions of dollars in value, and that customers could have received greater compensation if the assets had been held onto.
The Cursor stake's remarkable increase in value, from $200,000 to $3 billion, serves as a striking illustration of the potential consequences of the estate's actions.