Judge Approves FTX's Plan to Sell $1 Billion Stake in AI Startup Anthropic
The opposition from some FTX customers revolved around allegations that the funds used to acquire the Anthropic shares were embezzled from customer deposits.
A U.S. bankruptcy judge has granted approval for crypto exchange FTX to proceed with the sale of its stake in the AI startup Anthropic. The decision, made by Judge John Dorsey of the Bankruptcy Court for the District of Delaware, comes after FTX filed for permission to sell its nearly 8 percent stake in Anthropic, a move aimed at facilitating payments to the collapsed exchange's creditors.
FTX's investment of $500 million in Anthropic in 2021 gave it a 7.84 percent stake in the company. Despite facing opposition from a group of FTX customers who disputed the ownership of the Anthropic shares, FTX successfully reached a compromise in court, paving the way for the sale to proceed.
Anthropic, an AI company, garnered significant attention with its reported valuation reaching as high as $18 billion in December 2023. FTX's stake in Anthropic, acquired when its former CEO Sam Bankman-Fried invested $500 million in 2021, could potentially fetch a price exceeding $1 billion.
"We are selling the Anthropic shares, as we are selling everything, and putting the money in the bank," stated FTX attorney Andy Dietderich during a court hearing on Thursday. The exchange intends to utilize the proceeds from the sale to repay customers, with an assurance of flexibility to optimize the timing of the sale for maximum profitability.
FTX's initial investment had secured a 13.56 percent equity stake in Anthropic, which subsequently underwent dilution due to the company's additional fundraising rounds, including a substantial investment from Amazon.com. The opposition from some FTX customers revolved around allegations that the funds used to acquire the Anthropic shares were embezzled from customer deposits. However, the opposing parties agreed to allow the sale, with the condition of potential future arguments over ownership rights.
Addressing concerns over customer repayment, Dietderich affirmed FTX's commitment to reimburse all customers in full, utilizing the proceeds from the sale. FTX currently boasts a cash reserve of $6.4 billion, ensuring adequate liquidity to meet its financial obligations.
Founder Sam Bankman-Fried's impending sentencing for financial fraud, scheduled for March 28, adds a layer of complexity to FTX's ongoing legal battles. Despite Bankman-Fried's conviction, the exchange remains focused on navigating the bankruptcy proceedings and restoring confidence among its customer base.
FTX's decision to sell its Anthropic shares underscores its strategic approach to asset management amid challenging circumstances. As the exchange progresses with its restructuring efforts, stakeholders will closely monitor developments, recognizing the broader implications for the crypto industry at large.
