Breaking Crypto News – How Does FTX’s Anthropic Stake Sale Impact the Cryptocurrency Market?
Breaking Crypto News – In a May 31 court filing, bankrupt cryptocurrency exchange FTX announced that it would sell its remaining stake in AI startup Anthropic for $452.2 million. FTX revealed that G Squared, a worldwide venture capital firm, paid $135 million for almost one-third of the 4.5 million shares. The purchase also involved the participation of over twenty other venture capital funds, such as Gemini Ventures, Fund FG-BLU, and Fund SCVC-PV-LXVI.
The potential sale of FTX’s Anthropic shares, which is still awaiting Judge John Dorsey’s clearance, could bring in roughly $1.3 billion and earn the company approximately $800 million. When FTX looks to pay back creditors after declaring bankruptcy in November 2022, this sale might be the most lucrative for the company. On the other hand, some creditors contend that FTX clients, whose deposits paid for the acquisition, ought to have received the shares.
Were $10 Billion of Creditors’ Assets Destroyed?
In addition, creditors of FTX have been quite critical of the growing costs of FTX legal fees, claiming the consultants have destroyed nearly $10 billion in creditor value. FTX has paid $700 million in legal and administrative fees, according to recent bankruptcy documents that were monitored by X user Mr. Purple. Twenty-two million dollars was billed by the legal company Sullivan & Cromwell, and twenty-one million by the consulting firm Alvarez & Marsal. Furthermore, John Ray III, the CEO of FTX, invoiced $5.6 million at a rate of $1,300 per hour.
FTX advisors billed $700 million while destroying over $10 billion of creditor value. John Ray charged $5.6 million for making all business decisions, such as not restarting FTX despite multiple bids and selling assets at a 90% discount. Plan administrators need to change,
FTX creditor Sunil Kavuri
FAQ
What is a Stake Sale?
A stake sale occurs when one firm sells another company its equity investment in a certain company. It is the selling of stock in a corporation after an investment has been made.
What is Anthropic?
Known for its chatbot Claude, Anthropic is an AI startup that plans to produce AI models with more stringent regulations than ChatGPT and other competitors. Anthropic was founded by former workers of OpenAI, and major investments from big companies like Google have been made.
What Caused FTX to Collapse?
FTX’s bankruptcy was prompted by the company’s collapse, which was brought on by a surge in customer withdrawals that revealed a $8 billion hole in FTX’s finances. With more than a million members, FTX was the third-largest cryptocurrency exchange by volume before it crashed.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment