In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a valuation that has skyrocketed to approximately $3 billion following SpaceX's acquisition deal at a $60 billion valuation. This development has brought attention to the significant losses incurred by FTX's estate due to the sale of assets at undervalued prices during the bankruptcy process. SpaceX's decision to acquire Cursor is seen as a strategic move by Elon Musk to enhance his company's AI capabilities and close the gap with competitors.
The deal has also sparked debate about the handling of FTX's assets during the bankruptcy, with founder Sam Bankman-Fried arguing that the estate's liquidation of assets too quickly resulted in the destruction of billions of dollars in value. The Cursor stake, which was sold for $200,000, would now be worth $3 billion, representing a substantial missed recovery for FTX's creditors. This incident is likely to be cited as an example of the value that could have been realized if the estate had held onto its assets instead of selling them at a low point in the market.