FTX to add more than $1B to cash reserves after court approves sale of Anthropoc
Bankrupt crypto exchange FTX has been granted a judge's decision to sell more than $1 billion worth of shares in artificial intelligence startup Anthroponic.
Delaware Bankruptcy Court Judge John Dorsey ruled in a Feb. 22 hearing that the sale could go ahead after FTX reached a settlement with some customers who objected to the sale.
Clients have questioned FTX co-founder Sam Bankman-Fried's claims that Anthropic's shares are not FTX's, citing evidence presented in a criminal trial that says they were bought with misappropriated client funds.
However, they agreed to the sale if they were later allowed to request money from FTX users.
FTX attorney Andrew Ditderich of Sullivan & Cromwell said in a court filing that Anthroponic is selling shares because “we are selling everything and putting the money in the bank.”
He added that FTX would pay off the money by selling its Anthropopic stake to consumers, adding it to the $6.4 billion it now has in the bank — more than enough to pay anyone who gets a cut of its earnings.
Amidst the anthroponic funding frenzy, one of AI's hottest startups
The company raised $7.3 billion last year as the lure of artificial intelligence changed Silicon Valley deals. https://t.co/9mavuzwFeh
— Mo Hossain (@MoHossain) February 21, 2024
FTX made an offer to sell its 7.84% stake in Anthropotic earlier this month. It invested about $530 million in early April 2022, months before it collapsed and filed for Chapter 11 bankruptcy in November of that year.
The stock fell more than 13.5% following Anthropic's additional funding round. Data reported on February 16 that Anthropic's last round valuation was pegged at $15 billion, raising FTX's stake to more than $1.1 billion.
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Dietderich told the court last month that FTX could repay creditors in full and abandoned plans to restart the exchange.
However, the payment of creditors will depend on the crypto's prices during the FTX bankruptcy 15 months ago, when Bitcoin (BTC) was trading around $16,800 – now it is over $51,000, up more than 200%.
Bankman-Fried, meanwhile, is set to be sentenced on March 28 after pleading guilty to stealing more than $8 billion in client funds.
The former FTX boss said he maintains his innocence and will appeal the sentence.
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