In a surprising turn of events, a 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, would now be valued at approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. This development has brought attention to the significant losses incurred by FTX's estate due to the forced sale of assets during the bankruptcy process. The stake in question was initially purchased by Alameda Research, a trading firm founded by Sam Bankman-Fried, for $200,000 in April 2022, representing a 5% ownership in the company.
However, after FTX's collapse, the court-appointed estate sold the stake for the same amount, resulting in a substantial loss of potential revenue for the creditors. The timing of this sale has sparked controversy, particularly given Bankman-Fried's arguments that the estate's rapid liquidation of assets destroyed billions of dollars in value.
The Cursor stake's remarkable growth, from a $4 million valuation to a potential $60 billion, serves as a prime example of the potential upside that could have been realized if the assets had been held rather than sold. This incident is likely to feature prominently in ongoing discussions about the handling of FTX's assets and the campaign for Bankman-Fried's pardon.