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FTX Bags Court Approval to Sell Anthropic Stake amid Bankruptcy Proceedings
In a notable development amidst its bankruptcy proceedings, FTX has gained court approval to sell approximately its 7.84% stake in the Artificial Intelligence (AI) startup Anthropic. This move comes as part of FTX’s efforts to repay its creditors and customers following its collapse and subsequent filing for Chapter 11 bankruptcy.
Court Approval and FTX Stake Sale
The motion to sell the stake, initially filed early this month, follows a turbulent period for FTX, which first invested around $530 million in Anthropic back in April 2022. Despite initial attempts to offload its stake in Anthropic in June 2023, the process was halted amid prolonged due diligence by potential buyers.
Anthropic’s value surged in its latest funding round, with its valuation hitting an astonishing $15 billion, consequently amplifying the worth of FTX’s stake to over $1.1 billion. This unexpected gain offers a ray of hope for FTX creditors and customers awaiting reimbursement. It also underscores how some acquisitions eventually turned out positive for FTX in the long term.
Notably, FTX faced opposition from some customers who disputed its ownership of the Anthropic shares, alleging they were acquired using misappropriated customer funds. These objections were compounded by evidence presented during the criminal trial of FTX co-founder Sam Bankman-Fried. However, a compromise was reached, allowing the sale to proceed under the condition that proceeds would be made available for potential claims by FTX users.
Andrew Dietderich, FTX’s counsel at Sullivan & Cromwell, highlighted in court that the intention behind selling the Anthropic shares was to liquidate assets and secure funds for repayment.
He reiterated FTX’s commitment to repay users, adding that the proceeds from selling the Anthropic stake would be combined with FTX’s existing reserves, totaling $6.4 billion. This sum, he assured, is more than sufficient to repay any rightful claimants.
FTX’s Future Remains Uncertain
While the new management of FTX endeavors to fulfill its obligations to customers and creditors, the exchange’s future remains uncertain. Despite initial efforts to explore revival options, including discussions with potential buyers, critical deficiencies in technology and management practices have deterred interested parties, as highlighted in an earlier report.
This setback highlights the complexities involved in resurrecting a global crypto exchange and highlights the importance of robust governance and infrastructure. Meanwhile, Sam Bankman-Fried, the former CEO of FTX, faces an impending sentencing hearing on March 28 following his conviction for embezzling over $8 billion in customer funds.
Despite maintaining his innocence and expressing intentions to appeal the verdict, Bankman-Fried’s legal troubles cast a shadow over FTX’s turbulent journey.
As FTX navigates the intricacies of bankruptcy proceedings and asset liquidation, stakeholders remain hopeful for a fair resolution that prioritizes the interests of creditors and customers. The sale of its stake in Anthropic represents a pivotal step towards financial recovery, albeit against the backdrop of ongoing legal challenges and operational issues.
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FTX Bags Court Approval to Sell Anthropic Stake amid Bankruptcy Proceedings
Source: https://www.coinspeaker.com/ftx-court-approval-anthropic-bankruptcy/