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 judge approved FTX’s motion to sell the shares on Thursday.
(Background: FTX’s plan to sell “most valuable shares”: AI company Anthropic, valued at £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.
Motion to sell shares approved by the court
According to The Block, Judge John Dorsey of the Delaware bankruptcy court approved FTX’s motion to sell Anthropic after hearing the creditors’ opinions on whether the sale process should be approved during Thursday’s court hearing. David Adler, who claimed to represent some of FTX’s creditors, expressed opposition, expressing concerns about the creditors’ interests being compromised. However, this issue was resolved after the judge issued an amended order that included provisions regarding the creditors’ interests.
FTX’s attorney, Andrew Dietderich, stated during the hearing that FTX seeks to sell its Anthropic shares because it is looking to sell all its shares and deposit the funds into a bank. He assured that the creditors’ interests would not be harmed, and all proceeds from the sale would be deposited into a commingled segregated account.
Stake valued at $1.4 billion
Anthropic was founded in 2021 by former OpenAI researchers behind ChatGPT. Its valuation has been steadily rising, reaching $18 billion by December 2023. This raises FTX’s stake value to approximately $1.4 billion.
FTX previously stated plans to collaborate with Anthropic for the sale of these shares, describing the sale as a “good and healthy transaction.” The value of these shares has significantly changed, and FTX had previously submitted a motion hoping to expedite the approval of the sale of Anthropic shares. FTX intends to use the proceeds from the sale of Anthropic shares to repay the creditors, increasing the likelihood of full compensation for the creditors. FTX expects to be able to fully compensate all creditors, with the user compensation amount calculated based on the value of cryptocurrencies at the time of FTX’s bankruptcy filing in November 2022.
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