The recent announcement of SpaceX's intention to acquire AI coding startup Cursor at a valuation of $60 billion has brought attention to a notable missed recovery in crypto history. In April 2023, FTX's bankruptcy estate sold its 5% stake in Cursor for $200,000, a stake that would now be worth approximately $3 billion.

This significant disparity has sparked debate about the handling of FTX's assets during its bankruptcy. SpaceX's acquisition is part of Elon Musk's strategy to enhance his company's AI coding capabilities, an area where he acknowledges xAI, his AI company, is currently lagging behind competitors like OpenAI and Anthropic. The deal includes a provision for SpaceX to acquire Cursor for $60 billion later this year or pay a $10 billion breakup fee, pending the outcome of SpaceX's planned initial public offering, which targets a $2 trillion valuation. The crypto community's interest in this transaction stems from Alameda Research's initial $200,000 investment in Anysphere, the company behind Cursor, in April 2022.

This investment secured about 5% of the company at a $4 million valuation. Following FTX's collapse and subsequent bankruptcy, the court-appointed estate sold the Cursor stake for the same $200,000, realizing a significantly lower value than its current worth.

This transaction has become a focal point in discussions about the management of FTX's assets during its bankruptcy, with the gap between the sale price and the current valuation representing a substantial missed opportunity for creditors. The timing of this revelation is particularly noteworthy, as it coincides with arguments made by Sam Bankman-Fried, currently serving a federal sentence, that FTX's estate prematurely liquidated assets, potentially destroying billions in value.

Bankman-Fried has suggested that had the estate held onto these assets, their value could have increased substantially, potentially allowing customers to receive more than their initial investments. The case of the Cursor stake, which has seen one of the steepest valuations increases in software startup history, is cited as a prime example of the potential value that could have been realized.

While FTX customers have been repaid in accordance with the bankruptcy distribution plan, the significant upside from assets like the Cursor stake, now valued at $3 billion, was not realized, representing a substantial forgone recovery.