In April 2023, FTX's bankruptcy estate sold a 5% stake in AI coding startup Cursor for $200,000, a move that has become one of the largest missed recoveries in crypto history. Following SpaceX's recent agreement to acquire Cursor at a $60 billion valuation, the same 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. After FTX's collapse, the court-appointed estate sold the stake for the same amount, resulting in a significant loss of potential recovery for the estate's 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 in value. The case of the Cursor stake has become a prime example of the potential upside that could have been realized if the assets had been held rather than sold. With FTX customers having been repaid in full, the focus now shifts to the potential value that could have been recovered, with the Cursor stake alone representing a $3 billion missed opportunity.