The FTX estate, led by CEO John Ray III, has completed the sale of its remaining stake in artificial intelligence startup Anthropic, netting over $450 million. This second sale of 15 million shares at $30 apiece brings FTX’s total profit on its initial $500 million investment to a staggering $800 million.
Maximizing Repayment for Creditors
The liquidation of FTX’s Anthropic shares serves a critical purpose: maximizing repayment to creditors. Notably, the sale received swift approval from the Delaware bankruptcy court, demonstrating a commitment to a smooth and efficient process. This aligns with FTX’s stated goal of accelerating payments to those affected by the exchange’s collapse.
While the FTX bankruptcy has incurred over $700 million in legal and administrative fees, there’s a bright spot. The estate has managed to secure a massive $16.3 billion war chest for distribution.
This figure significantly surpasses the estimated $11 billion owed to FTX’s creditors, including approximately two million customers. This positive development paves the way for an unprecedented level of repayment: at least 118% of allowed claims.
Concerns and Transparency
Despite these efforts, criticism continues to surround the handling of the FTX bankruptcy. The high legal fees and the involvement of Sullivan & Cromwell, a law firm with past ties to FTX, have raised concerns about potential conflicts of interest. Calls for an independent examiner and a class-action lawsuit have emerged in response.
Looking Forward: Resolution and Rebuilding
FTX CEO John Ray III’s approach reflects a clear focus on resolving the bankruptcy and repaying creditors. His own fees, totaling $5.6 million for his services, highlight the high stakes involved. However, the prospect of a substantial payout for creditors offers a glimmer of hope amidst the fallout from FTX’s dramatic downfall.
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