FTX Given Green Light by Judge to Unload 1B Dollars Stake in AI Startup Anthropic

Crypto News- In a crucial move, a U.S. bankruptcy judge greenlit FTX’s proposal to divest its stake in AI startup Anthropic during a hearing held on Thursday. This decision marks a significant step forward in the efforts to reimburse creditors affected by the collapsed exchange.

Judge John Dorsey of the Bankruptcy Court for the District of Delaware gave his seal of approval to the sale motion after considering input from creditors regarding the approval of the sale process.

FTX Given Green Light by Judge to Unload 1B Dollars Stake in AI Startup Anthropic

FTX had sought permission earlier this month to offload its nearly 8 percent stake in Anthropic, an investment initiated by its incarcerated former CEO, Sam Bankman-Fried, who injected $500 million into the company in 2021.

During the hearing, some opposition surfaced from David Adler, who claimed to represent certain FTX creditors, citing concerns over the preservation of their rights. However, these concerns were addressed by refining the order to include language safeguarding creditors’ rights.

Andrew Dietderich, representing FTX, clarified during the hearing that the sale of Anthropic shares aligns with the broader strategy of liquidating assets and securing funds in bank accounts. He emphasized the equitable treatment of creditors in the disposition process.

Judge Dorsey expressed satisfaction with the proposed order, deeming it “appropriate.”

FTX Cleared to Offload Anthropic Stake as Bankruptcy Court Gives Go-Ahead

The anticipated value of Anthropic has been a beacon of hope for FTX collapse victims, with its valuation soaring to as high as $18 billion in December 2023. FTX’s stake in Anthropic, estimated at around $1.4 billion, holds significant promise for creditor reimbursement.

FTX intends to collaborate with Anthropic in executing the sale, underscoring the sound business rationale behind the move, especially considering the fluctuating value of the shares.

“In addition, the market for equities of early-stage technology companies, especially those focused on artificial intelligence, can be volatile, and the value of the Anthropic Shares has changed significantly since the Petition Date,” FTX stated in its filing earlier this month. “The Debtors may face stringent time constraints in order to capitalize when the value of and demand for the Anthropic Shares is high such that filing individual motions with the associated notice period would not be practicable.”