Bankrupt Crypto Exchange FTX Seeks Court Approval to Sell Stake in AI Firm Anthropic
Summary:
FTX, a bankrupt cryptocurrency exchange, is seeking court consent to sell its entire stake in AI firm, Anthropic. This comes as part of FTX's new management's efforts to recover lost funds and fully repay customers, as confirmed in court documents dated February 3. The approval for sale also includes investments owned by its sister entity, Alameda Research. The move follows other recent efforts to recoup losses, including a proposal to sell a $175 million claim against bankrupt digital finance firm, Genesis Global Capital.
FTX, the insolvent cryptocurrency exchange, is currently seeking court consent for the sale of its comprehensive investment in Anthropic, an artificial intelligence company, as seen in recent court records dated February 3. The plea to sell their holding of Anthropic Series B Preferred Stock, inclusive of affiliated rights, was directed to the U.S. Bankruptcy Court for the District of Delaware by FTX, and extends to the assets owned by its sister entity, Alameda Research. Sam Bankman-Fried, previous CEO of the exchange, provided a $530 investment into Anthropic in April 2022, a full seven months before the downfall of his enterprise in November of that year. The investment capital, originating from FTX customer deposits, was revealed during Bankman-Fried's October 2023 court proceedings. Following the closure of its Series B financing round in April 2022, Alameda owned about 13.56% of Anthropic. Due to subsequent rounds of funding that released extra securities, Alameda's ownership was reduced to 7.84% by January. Anthropic had a valuation of $18 billion as of December, effectively assigning Alameda's share at roughly $1.4 billion. Besides the sale approval, FTX is also attempting to expedite the inspection period for the sale request, with an aim to resolve it at the bankruptcy court's pending gathering on February 22. FTX's divestment from Anthropic lines up with its revised management's efforts to regain lost capital and repay their clientele fully. Andy Dietderich, FTX's legal counsel, clarified in a recent court session that FTX has the potential to reimburse its stakeholders in full, thereby, rejecting any plans of reviving the exchange. FTX previously proposed another similar motion on February 1, for the sale of a $175 million claim over Genesis Global Capital, a bankrupt digital finance firm.
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Published At
2/3/2024 10:17:24 PM
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