In April 2023, the FTX estate sold a 5% stake in AI coding startup Cursor for $200,000. However, with SpaceX's recent agreement to acquire the company at a $60 billion valuation, that same stake would now be worth approximately $3 billion. This significant increase in value has brought attention to the crypto angle of the deal, particularly the investment made by Alameda Research in April 2022.
The company, founded by Sam Bankman-Fried, had invested $200,000 in Anysphere, the company behind Cursor, at a $4 million valuation. After FTX's collapse, the court-appointed estate sold the stake for the same $200,000, resulting in a missed opportunity for the creditors.
The timing of the sale has been criticized, especially given Bankman-Fried's arguments that the estate's liquidation of assets was too hasty and destroyed billions in value. The case of the Cursor stake has become a prime example of the potential value that could have been realized if the estate had held onto its assets. With FTX customers having been repaid in full, the focus has shifted to the upside that could have been achieved if the assets had been retained.
The $3 billion forgone recovery from the Cursor stake alone has highlighted the potential consequences of the estate's actions.