- The valuable AI firm Anthropic was one of the companies in which the FTX estate sold its remaining shares because the legal and administrative costs associated with the bankruptcy exceeded $500 million.
The FTX bankruptcy case continues even though Sam Bankman-Fried, the founder of FTX, has had his trial concluded pending an appeal.
The FTX estate, managed by CEO John Ray III, has sold its remaining shares in Anthropic, the AI startup that produced the chatbot Claude, according to the business’s most recent bankruptcy documents.
FTX made about $450 million in revenue by selling the remaining 15 million shares for roughly $30 a share. With a profit of nearly $800 million, that raises the overall return on FTX’s initial $500 million investment in the business to roughly $1.3 billion. The price per share for the initial sale in March and this second auction were the same.
The biggest buyer in this round was the global venture capital firm G Squared, which paid $135 million for over 4.5 million shares, or nearly one-third of the remaining shares. Venture capital funds made up the majority of the remaining twenty purchasers of the Anthropic shares.
An exponential cost of bankruptcy
The Block stated that the legal and administrative fees associated with the FTX bankruptcy have exceeded $500 million, based on the most recent filings from the bankruptcy estate.
Due to complaints from FTX creditors, Sullivan and Cromwell, the main bankruptcy trustee, was one of the firms who represented FTX prior to filing for bankruptcy. This apparent conflict of interest has led to the appointment of an independent examiner and a class-action lawsuit. A New York Times research from the previous year revealed that legal firms were charging hundreds of millions of dollars in fees for the bankruptcy of cryptocurrency companies.
Based on his hourly rate of $1,300, FTX CEO John Ray has billed the estate $5.6 million since the dispute began. At least 118% of the permitted claims, as measured in dollars at the time the exchange filed for bankruptcy, will be repaid by the estate to 98% of its creditors.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
