FTX-Linked Venture Investment Sold at a Loss, Report Reveals

A new report has detailed the fate of a venture capital investment made by Alameda Research, the trading firm closely linked to the now-bankrupt cryptocurrency exchange FTX.

The Initial Investment

In April 2022, Alameda Research used $400,000 in customer funds to acquire an approximately 5% equity stake in Anysphere. Anysphere is the parent company of Cursor, a developer tools startup. This investment was made during Anysphere's pre-seed funding round.

The Bankruptcy Sale

FTX and its related entities, including Alameda Research, later filed for bankruptcy. As part of the liquidation process, the bankruptcy estate sold Alameda's stake in Anysphere in April 2023.

The stake was sold for $200,000 to unspecified buyers, representing a 50% loss on the initial $400,000 investment.

Context and Potential Impact

The former operator of FTX, Sam Bankman-Fried, has been convicted of fraud related to the collapse of the exchange. The report on the Anysphere sale provides a specific example of how assets from the failed crypto empire were disposed of during the bankruptcy.

A report indicates that if SpaceXAI were to exercise a purchase option for Anysphere, the valuation of the investment could reach billions of dollars. This hypothetical scenario highlights the potential scale of the loss for FTX's creditors, given that the 5% stake was ultimately sold for only $200,000.