In April 2023, FTX's estate sold a 5% stake in Cursor for $200,000, the same amount Alameda Research had invested in the company a year prior. Following SpaceX's agreement to acquire Cursor at a $60 billion valuation, that stake would now be worth approximately $3 billion.
This substantial increase in value has sparked debate about the handling of FTX's assets during its bankruptcy, with founder Sam Bankman-Fried arguing that the estate's swift liquidation of assets, including the Cursor stake, destroyed significant value for creditors. The timing of the sale has raised questions about the decision-making process behind the estate's asset management, particularly given the remarkable growth trajectory of Cursor since its AI coding product launch in 2023.
While FTX customers have been repaid in full, the substantial upside from assets like the Cursor stake has been lost, fueling discussions about the estate's approach to asset recovery and the potential implications for Bankman-Fried's ongoing case.