Bankrupt cryptocurrency exchange FTX has submitted a motion to the US bankruptcy court earlier this month, seeking to sell its most valuable remaining illiquid assets, an approximately 8% stake in AI startup Anthropic, worth about $1.4 billion. Despite opposition from some creditors, the motion to sell was approved by the judge on Thursday.
Background:
FTX plans to sell its “most valuable stocks”: AI company Anthropic, in which SBF invested, worth ₤1.4 billion.
Founder and former CEO of bankrupt exchange FTX, Sam Bankman-Fried (SBF), invested $500 million in AI startup Anthropic in October 2021. As Anthropic’s valuation soared, FTX submitted a motion to the court at the beginning of the month, requesting the judge’s approval to sell its approximately 8% stake in Anthropic.
Approval of the motion to sell:
According to The Block’s report, Judge John Dorsey of the Delaware bankruptcy court approved FTX’s motion to sell Anthropic during Thursday’s court hearing, after hearing the opinions of creditors on whether the sale process should be approved. Judge Dorsey listened to the opposing opinion of David Adler, who claimed to represent some of FTX’s creditors. David Adler was concerned about the creditors’ interests being compromised. However, this issue was resolved after the judge issued an amended order to address the creditors’ interests.
FTX’s attorney, Andrew Dietderich, stated during the hearing that FTX seeks to sell the Anthropic stock because FTX is looking to sell all its stocks and deposit the funds into a bank. The creditors’ interests will not be compromised, and all proceeds from the sale will be deposited into a commingled account.
Valuation of the stake increased to $1.4 billion:
Anthropic, founded by former OpenAI researchers of ChatGPT in 2021, has seen its valuation continuously rise. As of December 2023, its latest valuation has reached $18 billion, making FTX’s stake worth approximately $1.4 billion.
FTX previously stated that it plans to work with Anthropic to sell these shares, calling the sale a “good and healthy deal.” The value of these stocks has significantly changed, and FTX had previously submitted a motion hoping to expedite the approval to sell the Anthropic shares. FTX intends to use the proceeds from the sale of Anthropic shares to repay the creditors. With the sale of Anthropic shares, the hope for full compensation for creditors becomes more achievable. FTX expects to fully compensate all creditors, with the user compensation amount calculated based on the cryptocurrency value at the time of FTX’s bankruptcy application in November 2022.
Further reading:
FTX promises full compensation, but victims should not rejoice too soon, as it will be calculated based on BTC $16,870, ETH $1,258, SOL $16…
Related reports
Will FTT still be valuable if FTX plans to fully compensate?
Cash out ₤500 million at the peak, avoid bankruptcy… the biggest beneficiary of FTX’s collapse is a judo champion?
FTX hacker caught! US Department of Justice: SIM card hijacking attack steals $400 million, will creditors be repaid?