FTX Bankruptcy Liquidators Disposed of Cursor Stake for $200k, Now Worth Billions

Ahead of what is being hyped as the largest initial public offering (IPO) of all time, Elon Musk's "SpaceXAI" has acquired the rights to acquire AI startup Cursor later this year for $60B, or pay $10B for a joint coding collaboration.

What's the Scoop?

• Bankruptcy Bungle: Via subsidiary Alamada Research, FTX – the insolvent crypto exchange formerly operated convicted fraudster Sam Bankman Fried – misappropriated $400k of customer funds to purchase a ~5% equity stake in Cursor parent company Anysphere during the company's pre-seed round in April 2022. One year later, bankruptcy liquidators disposed of Alameda's stake at a 50% loss for $200k to unspecified buyers. If completed, SpaceXAI's purchase option for the AI firm would value the investment in the billions, equating to a massive loss for creditors.