In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a decision that has come under scrutiny following SpaceX's agreement to acquire the company at a $60 billion valuation. The deal, which includes a $10 billion breakup fee, has significant implications for the crypto industry and FTX's creditors. The stake, originally purchased by Alameda Research for $200,000 in 2022, would now be worth approximately $3 billion.
This substantial increase in value has sparked debate about the handling of FTX's assets during its bankruptcy, with founder Sam Bankman-Fried arguing that the estate's hasty liquidation of assets destroyed billions in potential value. The case of the Cursor stake has become a prime example of the potential losses incurred by FTX's creditors, with the gap between the sale price and current value representing a 15,000x return.