FTX’s sale of its shares in Anthropic, an AI company, could be a silver lining in their ongoing bankruptcy proceedings. However, the deal is shrouded in controversy due to concerns from creditors.
FTX could net around $800 million from selling its Anthropic shares, totaling $1.3 billion (approval pending from Judge John Dorsey). FTX invested $500 million in Anthropic (7.8% stake) in 2021.
Anthropic aims to develop AI models with stricter safety measures than competitors like ChatGPT. The company, founded by ex-OpenAI employees, has attracted investments from tech giants like Google.
This sale could be FTX’s most profitable asset sale to repay creditors following their November 2022 bankruptcy. However, some creditors believe the shares should be used to compensate FTX customers whose deposits funded the initial investment.
Mounting Legal Fees Under Fire
– FTX’s rising legal fees are criticized by creditors who allege advisors mismanaged them.
– Bankruptcy filings reveal over $700 million in legal and administrative fees.
– Creditors accuse advisors of destroying over $10 billion in value through decisions like asset undervaluing.
While the Anthropic sale offers a potential financial lifeline for FTX, creditor concerns and skyrocketing legal fees complicate the situation. The decisions made by Judge Dorsey and the success of the sale will be crucial in determining the fate of FTX and its creditors.
