Bankrupt Crypto Exchange FTX to Sell $1B Anthropic Stake to Clear Debts
Summary:
Bankrupt cryptocurrency exchange FTX plans to sell its approximately $1 billion stake in AI firm Anthropic, using this to clear its bankruptcy debts. The deal, which should finalize within a few weeks, comes following a February court ruling allowing FTX to sell its shares in Anthropic. Saudi Arabia was ejected from potential investors due to national security concerns. The announcement precedes the approaching sentencing of FTX boss Sam Bankman-Fried, convicted on seven accounts of fraud.
The bankrupt crypto exchange FTX is set to divest its stake in the AI firm Anthropic, valued at roughly $1 billion, in an effort to settle its bankruptcy liabilities, as reported by CNBC on 22nd March. Currently, Anthropic is evaluating a range of potential investors to buy the stake. The agreement is expected to be confirmed within a few weeks, as per sources knowledgeable about the dealings. The sale of shares is being arranged through a special purpose vehicle (SPV), likely due to FTX's bankruptcy. SPVs are individual legal entities used by insolvent parent companies to meet their debt obligations. The news comes with a related development that Saudi Arabia has been knocked out of the running over national security suspicions; although it is not clear if this is limited to state, individual or corporate investors from Saudi Arabia or citizens running businesses abroad. This is despite the shares being non-voting "Class B" shares. As reported earlier by Cointelegraph, Judge John Dorsey of the Delaware Bankruptcy Court ruled in a hearing on February 22 that FTX could sell its stake in Anthropic. When FTX purchased the shares in April 2022, they were worth roughly $530 million. However, the value of these shares has nearly doubled in the wake of the surging AI industry, now thought to be worth approximately $1 billion. This development occurs the week before FTX boss Sam Bankman-Fried is due to be sentenced on March 28. Bankman-Fried was convicted on seven counts of fraud. He is characterized by U.S. Attorney Damian Williams as one of the biggest financial fraudsters in U.S. history, with "a scheme worth billions designed to establish him as the crypto king.
Published At
3/22/2024 11:57:57 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.