The value of a 5% stake in AI coding startup Cursor, sold by FTX's bankruptcy estate for $200,000 in April 2023, has skyrocketed to approximately $3 billion following SpaceX's agreement to acquire the company at a $60 billion valuation. This deal, led by Elon Musk, aims to bridge the gap with competitors in AI coding tools. The stake was initially purchased by Alameda Research, a trading firm founded by Sam Bankman-Fried, for $200,000 in April 2022, representing a 5% share of 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 missed recovery opportunity.
This event has sparked debate, particularly from Bankman-Fried, who argues that the estate's rapid liquidation of assets destroyed billions in value, and that customers could have received greater compensation if the process had been handled differently. The timing of the SpaceX acquisition has brought renewed attention to the issue, with the gap between the sale price and the current valuation representing a substantial 15,000% return. This missed opportunity is likely to feature prominently in ongoing discussions about the FTX bankruptcy and its handling.