FTX Shares In Anthropic Now Approved By Court For Sale

Key Points:

• FTX shares in Anthropic worth $1 billion have been approved by the court for sale.
• Despite initial opposition from some customers, the sale proceeds will be disputed at a later stage, allowing FTX to move forward with the sale.
• The approval marks a significant step in FTX’s efforts to repay creditors amid ongoing legal proceedings against Bankman-Fried.

According to Reuters, the bankrupt crypto exchange has received approval from a U.S. bankruptcy court to sell FTX shares in Anthropic, potentially injecting over $1 billion into its coffers.

Read more: Sam Bankman-Fried Private Life Before The FTX Crisis Happened

FTX Shares in Anthropic Worth $1 Billion Are Cleared to Sell

The decision, granted by Judge John Dorsey, marks a significant step in FTX’s efforts to repay its creditors following its collapse in 2022.

FTX, which holds an 8% stake in artificial intelligence firm Anthropic, aims to capitalize on this asset to alleviate its $6.4 billion debt burden. The sale was greenlit despite initial opposition from some customers who alleged that the shares were acquired using misappropriated funds. However, a compromise was reached, allowing customers to dispute ownership of the proceeds at a later stage.

The FTX shares in Anthropic date back to 2021 when it injected $500 million into the AI company. Despite FTX’s subsequent bankruptcy filing, Anthropic’s valuation soared, with recent reports pegging it at around $15 billion to $18.4 billion, significantly boosting the value of FTX’s stake.

FTX Founder Faces Fraud Sentencing Amidst Asset Liquidation

The move to sell Anthropic shares comes amidst ongoing legal proceedings against FTX’s founder, Sam Bankman-Fried, who was convicted of fraud last November. Bankman-Fried, who faces sentencing in March, has maintained his innocence and plans to appeal.

FTX’s bankruptcy filing in 2022 sent shockwaves through the cryptocurrency industry, prompting a scramble to recover assets and settle outstanding debts. The sale of Anthropic shares represents a pivotal step in this process, offering much-needed liquidity to repay customers and creditors.