The FTX estate, under the leadership of CEO John Ray III, has divested its remaining shares in Anthropic, an AI startup known for its chatbot Claude. This decision was revealed in the firm’s recent bankruptcy filings, with FTX selling the remaining 15 million shares for around $30 each, resulting in proceeds exceeding $450 million. The total earnings from FTX’s initial $500 million investment in Anthropic now stand at approximately $1.3 billion, resulting in a profit of around $800 million. The price per share for this recent sale matched that of the first sale conducted in March, with global venture capital fund G Squared leading the buyers by acquiring roughly one-third of the remaining shares for $135 million.
As FTX continues to navigate its bankruptcy proceedings, the cost of the bankruptcy has surged past $500 million in legal and administrative fees. This surge has raised concerns among FTX creditors regarding a potential conflict of interest, as the primary law firm managing FTX’s bankruptcy, Sullivan and Cromwell, had previously represented FTX. This situation has prompted the appointment of an independent examiner and a class-action lawsuit. FTX CEO John Ray has submitted a bill of $5.6 million to the estate, reflecting his hourly rate of $1,300 since the initiation of the case. The estate aims to repay at least 118% of allowed claims to 98% of its creditors, measured in dollar value at the time of FTX’s bankruptcy filing.
In a separate development, former FTX Co-CEO Ryan Salame has been sentenced to 7.5 years in prison by a federal judge after pleading guilty to two felony charges. This sentencing occurred on May 28, 2024, in the US District Court for the Southern District of New York, with Judge Lewis Kaplan presiding over the case. Salame had entered a guilty plea in September 2023 and had been awaiting sentencing. Salame had requested leniency from the court in the form of an 18-month sentence but was ultimately given a longer sentence. Meanwhile, former FTX CEO Bankman-Fried filed to appeal his conviction and sentence for fraud and conspiracy charges last month, with the disgraced crypto boss currently serving a 25-year prison sentence.
Despite these legal challenges and sentencing outcomes, the FTX bankruptcy estate has outlined its target to initiate repayments to customers by the end of 2024. This plan was disclosed during a meeting of FTX Digital’s Joint Official Liquidators in the Bahamas, where the bankruptcy proceedings for FTX are taking place. The FTX bankruptcy consists of two distinct processes – the Chapter 11 bankruptcy being overseen by a Delaware court in the United States and the official liquidation of FTX Digital, the Bahamas-based subsidiary of FTX. As FTX continues to navigate these complex legal proceedings and financial challenges, the future remains uncertain for the company and its stakeholders.
In summary, FTX has divested its remaining shares in Anthropic, resulting in significant proceeds and profits for the firm. The bankruptcy cost for FTX has surged past $500 million in legal and administrative fees, raising concerns among creditors. Former FTX Co-CEO Ryan Salame has been sentenced to 7.5 years in prison, while former CEO Bankman-Fried has filed to appeal his conviction and sentence. The FTX bankruptcy estate aims to initiate repayments to customers by the end of 2024. The bankruptcy consists of two distinct processes, including a Chapter 11 bankruptcy overseen by a Delaware court and the official liquidation of FTX Digital in the Bahamas. The future of FTX and its stakeholders remains uncertain as they navigate these legal challenges and financial difficulties.
