In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a decision that has proven to be a costly mistake given the company's current valuation of $60 billion. SpaceX's agreement to acquire Cursor at this valuation has brought attention to the significant missed recovery for FTX's creditors. The stake, which was initially purchased by Alameda Research for $200,000 in 2022, would now be worth approximately $3 billion. This substantial difference in value has sparked debate about the handling of FTX's assets during its bankruptcy.
The estate's decision to liquidate assets quickly has been criticized by Sam Bankman-Fried, who argues that holding onto these assets would have resulted in a significantly higher recovery for creditors. The Cursor stake serves as a prime example of the potential value that could have been realized if the estate had adopted a different approach.
With FTX customers having been repaid in full, the focus now shifts to the potential upside that could have been achieved if the estate had held onto its assets, including the lucrative Cursor stake.