Bankrupt cryptocurrency exchange FTX has secured court approval to sell its equity stake in the AI startup Anthropic, valued at over $1 billion. This move comes after the latest valuation of Anthropic at $15 billion, meaning FTX's nearly 8% stake now equals over $1 billion - funds that could be used to settle with creditors.
FTX Receives Court Approval for Anthropic Stake Sale
The bankruptcy court in Delaware, led by Judge John Dorsey, approved on February 22 the sale of FTX shares in the AI startup Anthropic. The decision was made after FTX addressed objections from some customers who opposed the sale. These customers argued that Anthropic shares were purchased unlawfully with their funds but agreed to the sale on the condition of future reimbursement.
FTX Plans to Settle Debts from Share Sale
According to FTX's legal representative from Sullivan & Cromwell, Andrew Dietderich, the aim of selling Anthropic shares is to obtain funds to settle with exchange users. FTX has committed to adding the proceeds from the sale to the existing $6.4 billion, which should be sufficient to cover all creditor claims.
FTX's Investment History in Anthropic
FTX originally invested around $530 million in Anthropic in April 2022, several months before its collapse and subsequent Chapter 11 bankruptcy filing in November of the same year. Following further investment rounds, FTX's stake in Anthropic was diluted to over 13.5%, but the recent valuation of the company at $15 billion increased the value of their stake to over $1.1 billion.
FTX's Plans and Future Creditor Repayments
Dietderich informed the court that FTX does not intend to resume its operations but plans to fully settle with its creditors. However, repayments will depend on cryptocurrency prices at the time of bankruptcy, which could mean significant differences given the current surge in bitcoin value.
Legal Proceedings Against Sam Bankman-Fried
Sam Bankman-Fried, co-founder of FTX, will be sentenced on March 28 after being found guilty of embezzling over $8 billion from customer funds. Despite maintaining his innocence, he has announced plans to appeal the verdict.
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