Following SpaceX's agreement to acquire Cursor at a $60 billion valuation, it has been revealed that FTX's estate sold its 5% stake in the company for $200,000 in April 2023, a sum that would now be worth approximately $3 billion. This significant disparity has sparked debate about the handling of FTX's assets during its bankruptcy proceedings. The investment, initially made by Alameda Research in April 2022, was sold by the court-appointed estate for the same amount, resulting in a substantial loss of potential recovery for creditors.
The timing of the sale has raised questions about the decision-making process, particularly in light of founder Sam Bankman-Fried's claims that the estate's liquidation of assets was too hasty and destroyed billions of dollars in value. The Cursor stake's remarkable growth, from a $4 million valuation to $60 billion in just three years, is a prime example of the potential upside that FTX customers missed out on. As Bankman-Fried serves his 25-year sentence, his arguments about the estate's handling of assets have taken on newfound significance, with the Cursor stake's valuation serving as a striking illustration of the potential consequences of the estate's actions.