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FTX to Sell $1 Billion Stake in AI Firm Anthropic to Pay Off Bankruptcy Debts Amidst Legal Battles

FTX, the cryptocurrency exchange that went bankrupt, is in the process of selling its investment in the artificial intelligence company Anthropic, valued at approximately $1 billion.

This move is part of FTX’s strategy to address its bankruptcy debts, a situation reported by CNBC on March 22.

Anthropic, an AI firm, is currently evaluating potential buyers for FTX’s stake, with a transaction expected to finalize within the next few weeks.

Sources close to the situation, preferring anonymity due to the sensitive nature of the financial discussions, informed CNBC of these developments.

The method of sale involves a special purpose vehicle (SPV), a separate corporate entity created to fulfill legal obligations during insolvency situations, indicative of FTX’s current financial state.

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Interestingly, the sources revealed that Saudi Arabian entities have been excluded from the bidding process over national security concerns, although it remains unclear if this exclusion pertains to all Saudi investors or just state-related ones. It’s important to note that the shares in question are “Class B” non-voting shares.

The potential sale follows a decision by the Delaware Bankruptcy Court, where Judge John Dorsey authorized FTX to liquidate its Anthropic shares on February 22.

FTX initially acquired these shares for about $530 million in April 2022, and their value has nearly doubled since, propelled by the surge in generative AI technology, now estimated to be worth around $1 billion.

This development surfaces as FTX’s former CEO, Sam Bankman-Fried, prepares for his sentencing hearing on March 28, after being convicted on seven counts of fraud in November 2023.

Describing Bankman-Fried’s actions, U.S. Attorney Damian Williams stated, “a multibillion-dollar scheme designed to make him the king of crypto,” and highlighted the scale of the fraud as one of the most significant financial deceptions in U.S. history.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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