The recent acquisition of AI coding startup Cursor by SpaceX for $60 billion has shed light on a substantial missed recovery for FTX's estate. In April 2023, the estate sold its 5% stake in Cursor for $200,000, which would now be worth approximately $3 billion.
This significant disparity has sparked debate about the handling of FTX's assets during its bankruptcy. The investment in Cursor was initially made by Alameda Research, a trading firm founded by Sam Bankman-Fried, for $200,000 in April 2022. Following FTX's collapse, the court-appointed estate sold the stake for the same amount, resulting in a substantial loss of potential value for the creditors.
The timing of this sale has raised questions about the bankruptcy administration's decisions, particularly given Bankman-Fried's claims 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 $60 billion, is a prime example of the potential value 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 FTX's bankruptcy and the handling of its assets.