- Court grants FTX’s motion to sell its stake in AI startup Anthropic.
- The sale will enable the now-defunct exchange to facilitate creditor payouts.
- An FTX-linked crypto portfolio recently recorded a significant surge in value.
The fall of the bankrupt cryptocurrency exchange FTX and its founder, Sam Bankman-Fried (SBF), rippled through the crypto industry, resulting in a loss of over $8 billion for investors. With SBF’s conviction on several criminal charges, industry attention has shifted to the possibility of creditor reimbursement.
As efforts to make investors whole intensify, FTX has now received approval to liquidate one of its most valuable assets.
FTX to Dump Anthropic Stake
According to a Thursday court document, a U.S. court has granted the exchange’s motion seeking authorization to offload its stake in the artificial intelligence startup Anthropic.
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This allows FTX to sell its shares in the firm, acquired through SBF’s $500 million investment between October 2021 and April 2022, before its collapse.
While the stake is attributed to FTX’s sister firm, Alameda Research, the firm’s legal team argued that the capital facilitating the investment originated from customer deposits in FTX.
Now valued at approximately $1.4 billion with Anthropic’s current valuation, the proceeds will be directed towards the ongoing repayment process for FTX’s extensive list of creditors, which has recently gained momentum.
Will FTX Repay Creditors?
Under its new leadership, FTX has reported the recovery of over $7 billion in assets to settle its debts with 9 million customers.
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While the timeline for the settlement is undisclosed, the exchange has asserted ongoing efforts to generate enough liquidity, such as the proposed sale of its subsidiary custody firm, Digital Custody Inc. (DCI), to ensure that creditors are soon made whole.
Additionally, a crypto wallet associated with FTX has seen a major surge in value in the recent market rally, and this could significantly boost the exchange’s liquidity and support payouts to customers.
FTX is also negotiating with potential bidders to revive the defunct exchange. However, the ongoing settlement may pose a challenge to the fruition of a new start.
Read here to discover the latest about SBF since his conviction:
SBF to Make First Court Appearance Since November Conviction
Find out about the latest cyberattack on a wallet associated with the Ronin Bridge:
Ronin Hacked Again? Here’s What Happened to $9.7M
