The recent deal between SpaceX and Cursor has shed light on a substantial missed recovery for FTX's bankruptcy estate. In April 2023, the estate sold its 5% stake in Cursor, acquired by Alameda Research for $200,000 in 2022, for the same amount. However, with SpaceX's $60 billion valuation, this stake would now be worth approximately $3 billion.
This significant disparity has sparked debate, particularly given Sam Bankman-Fried's arguments that FTX's estate undervalued and prematurely liquidated assets during the bankruptcy process. The timing of the sale has raised questions, as it occurred just before Cursor's AI coding product launch in 2023, which marked the beginning of the company's steep trajectory to its current valuation. While FTX customers have been repaid in full, they did not benefit from the substantial upside of the assets sold during the bankruptcy, including the $3 billion potential gain from the Cursor stake. This example is likely to feature prominently in ongoing discussions about the handling of FTX's assets and the case against Bankman-Fried.