Key Points:
- The remaining 15 million FTX shares in Anthropic have been sold for $450 million, with the aim of optimizing creditor repayment.
- FTX’s bankruptcy has incurred over $700 million in fees, with concerns over potential conflicts of interest involving the law firm Sullivan and Cromwell.
Finally, FTX is no longer a shareholder in the artificial intelligence company Anthropic after selling all its shares in the AI company.
FTX Shares In Anthropic Was Completed $450 Million Sale
The FTX Estate, headed by CEO John Ray III, sold the remaining 15 million FTX shares in Anthropic for $30 each, raking in over $450 million. The total amount received from FTX’s initial $500 million investment is now close to $1.3 billion, with profits of around $800 million.
The biggest buyer was global venture capital fund G Squared, which bought 4.5 million shares for $135 million. The remaining 20 buyers were mostly venture capital funds. This is the second sale; the shares sold in March went for the same price of $30 per share.
The liquidation of FTX shares in Anthropic is all part of maximizing repayment to creditors. The deal was approved by the US District Court for the District of Delaware’s Supreme Bankruptcy Court within weeks. According to FTX, the process was designed to be optimal for all parties and to speed up payments to creditors.
FTX Prepares for Full Creditor Repayment with $16.3 Billion Fund
The FTX bankruptcy has cost over $700 million in legal and administrative fees, tracked by creditor Mr. Purple. The main law firm handling the bankruptcy, Sullivan & Cromwell, has faced criticism over potential conflicts of interest, given its past representation of FTX. It has had to defend calls for an independent examiner and a class-action lawsuit.
Despite the best efforts of the firm, FTX has managed to corral $16.3 billion in cash for distribution, far more than the $11 billion owed to approximately two million customers and other creditors. The exchange plans to repay at least 118% of the allowed claims, an unprecedented feat in US bankruptcy proceedings.
FTX CEO John Ray III has charged the estate $5.6 million for his services, billing at $1,300 per hour. The estate’s approach reflects its commitment to repaying creditors and resolving the bankruptcy as soon as possible.
