FTX Estate Sold Cursor Stake for $200K, Lost $3B Value

The FTX bankruptcy estate sold its equity stake in Cursor for $200,000 in 2023. Later increases in Cursor’s valuation mean the same stake would have been worth roughly $3 billion at subsequent prices.

The sale took place while estate managers were liquidating assets to generate funds for creditors and to cover legal and administrative expenses. The Cursor position was among a range of holdings converted to cash during the estate wind-down.

Estate officials said they prioritized converting assets to cash to advance distributions to creditors and fund estate costs. Selling an early-stage equity position delivered immediate proceeds but removed the estate’s exposure to any future appreciation in Cursor’s value.

The gap between the $200,000 sale price and later estimated value reflects timing, market liquidity and valuation uncertainty that affect bankrupt estates when they sell assets. Trustees balance immediate liquidity needs against possible future gains when deciding to sell.

There are no public statements from estate managers specifically addressing the Cursor sale. The estate continues to manage a broad portfolio of tokens and investments that were held by the exchange and related entities.

Financial advisers and trustees are continuing the wind-down process. Past transactions such as the Cursor sale could draw scrutiny from creditors and stakeholders who evaluate whether asset disposals maximized recoveries.