FTX secures court approval to sell 8% Anthropic stake

Defunct crypto exchange FTX has secured court approval to sell its stake in artificial intelligence (AI) startup Anthropic Holdings , potentially adding over $1 billion to its assets earmarked for repaying creditors.

Delaware Bankruptcy Court Judge John Dorsey handed down the decision on Feb. 22, marking a pivotal development in the ongoing saga of FTX’s efforts to settle debts with its users and other creditors.

Stake worth above $1 billion

Anthropic, known for its cutting-edge AI technology, has recently been valued at $15 billion. FTX’s nearly 8% stake in the company, acquired before its financial turmoil, is now estimated to be worth in excess of $1 billion.

This valuation comes after FTX’s initial investment of approximately $530 million into Anthropic in April 2022, highlighting the substantial appreciation in the value of its investment.

The court’s approval came after FTX addressed objections from some of its customers, who argued that the shares were purchased with misappropriated funds. These customers were referencing evidence presented during the criminal trial of FTX co-founder Sam Bankman-Fried.

The exchange reached a compromise with customers, allowing the sale to proceed with the understanding that these customers could later stake a claim to the proceeds aimed at benefiting FTX’s broader user base.

Repaying creditors

FTX filed a request to sell the stake in January after giving up on plans to restart the exchange in favor of liquidation to make its creditors whole again.

The exchange’s lawyer, Andrew Dietderich, told the court the proceeds from the sale would be used to repay creditors. He said at the time:

“We are selling everything and putting the money in the bank.”

FTX’s current assets, including the anticipated proceeds from this sale, will significantly bolster the $6.4 billion already held for creditor repayment.

FTX’s move to liquidate its stake in Anthropic comes amidst broader efforts by the exchange’s management to navigate its bankruptcy proceedings. The sale is seen as a strategic step to maximize returns for creditors, many of whom have been left in limbo since the platform’s collapse.

The outcome of this and other asset liquidations will be closely monitored by stakeholders eager to see the extent of their recovery from one of the most significant implosions in cryptocurrency history.

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