In April 2023, the estate of FTX sold a 5% stake in Cursor for $200,000, but following SpaceX's acquisition of the company at a $60 billion valuation, that stake 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 initial investment in Cursor was made by Alameda Research, a trading firm founded by Sam Bankman-Fried, for $200,000 in April 2022, representing a 5% stake in the company at a $4 million valuation. After FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a significant loss of potential recovery for creditors.
The timing of this sale has been criticized, particularly by Bankman-Fried, who argues that the estate's decision to liquidate assets too quickly destroyed billions of dollars in value. The case of the Cursor stake has become a prime example of the potential value that could have been realized if the estate had held onto its assets. Despite FTX customers being repaid in full, the missed opportunity for additional recovery has raised questions about the bankruptcy administration's handling of the estate's assets.