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    FTX Allowed to Sell Anthropic Shares Worth Billions, Will This Make Creditors Whole?

    A U.S. bankruptcy judge cleared the way for collapsed crypto exchange FTX to sell its stake in AI startup Anthropic, offering a potential lifeline to the exchange’s creditors. Judge John Dorsey of the Delaware Bankruptcy Court approved the motion after addressing concerns from some creditors.

    FTX, led by the now-jailed Sam Bankman-Fried, invested $500 million in Anthropic in 2021 and currently holds an almost 8% stake. Selling this stake could inject much-needed funds into the estate, potentially allowing full repayment of creditors.

    Read More: FTX Fire Sale: Digital Custody Goes for $500k After $10M Buy

    Concerns and Resolutions:

    Some creditors, represented by David Adler, initially opposed the sale due to concerns about their rights. However, the judge ultimately approved a revised order addressing these concerns, ensuring creditor rights are preserved.

    Antrhopic Value Reached $18 Billion in December

    FTX lawyer Andrew Dietderich emphasized the sale’s importance in recovering funds for creditors. “We’re selling everything and putting the money in the bank,” he stated.

    Anthropic’s reported valuation reached $18 billion in December 2023, making FTX’s stake worth around $1.4 billion. This represents a significant potential source of recovery for victims of the FTX collapse. FTX anticipates having enough funds after the sale to repay all claims in full.

    FTX previously argued for a swift approval process due to the volatile nature of AI startup valuations. They emphasized the importance of selling the stake while its value remains high.

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