Originally $200k could become $3 billion! FTX sold Cursor equity cheaply, now Musk is pouring in big money to buy it.

Cursor, acquired by Elon Musk’s SpaceX at a $60 billion valuation, was meant to make the value of its 5% stake skyrocket to $3 billion. However, FTX’s liquidation team had already sold it off at the original price in a fire sale, missing out on a potential return of 15,000 times.

Recently, the bankrupt cryptocurrency exchange FTX has once again become a hot topic in the market. The reason is not progress on creditor compensation, but that years ago the FTX bankruptcy liquidation team sold its equity stake in the AI startup Cursor for just $200,000; now, its value has somehow surged to about $3 billion, with potential returns as high as 15,000 times.

Earlier this week, a market-shocking bomb was dropped by SpaceX led by the world’s richest man, Elon Musk. It announced that it had obtained the rights to acquire the AI startup Cursor for $60 billion; if the acquisition ultimately cannot be completed, then it will pay $10 billion to drive cooperation between the two parties.

This jaw-dropping deal not only stunned the global markets, but also unexpectedly unearthed a case within a case. Looking back to April 2022, Alameda Research—FTX’s sister company founded by Sam Bankman-Fried (SBF)—invested $200,000 in Cursor’s parent company, Anysphere, obtaining roughly 5% of the shares at a $4 million valuation.

But just a year later, both Alameda Research and FTX filed for bankruptcy protection. To quickly raise cash, the bankruptcy liquidation team appointed by the court actually disposed of this Cursor equity stake at the original purchase price of $200,000.

Based on SpaceX’s $60 billion valuation, the value of this 5% stake is now as high as $3 billion. By selling it cheaply, they missed out on a potential return of up to 15,000 times—an unexpected windfall that could have been used to maximize creditor compensation ultimately ended up in the pockets of a mysterious buyer who grabbed the bargain out of the bankruptcy process.

This transaction undoubtedly gives SBF—the man currently serving time behind bars—the strongest ammunition for his defense. Over the past year, SBF has repeatedly spoken out from prison, harshly criticizing the bankruptcy liquidation team for, in pursuit of a rapid case closure, dumping assets at any cost during the market downturns and severely damaging customers’ interests.

In February this year, SBF submitted an asset valuation, claiming that if the liquidation team had “continued to hold” these equity stakes along with cryptocurrencies and made it through the downturns of 2023 and 2024, then FTX’s net asset value (NAV) could now reach $78 billion.

• This article is reprinted with authorization from: 《Block Beast》
• Original title: 《$200,000 Turned into $3 Billion! FTX’s Bargain Sale of “Cursor Equity” Missed a 15,000-Times Return》
• Original author: Block Sis MEL