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FTX receives judicial green light to sell Anthropic shares amid bankruptcy

Court agreement paves the way for the sale of FTX shares in Anthropic

TL;DR

  • FTX gets court approval to sell Anthropic shares.
  • Agreement reached between FTX and objecting clients allows the sale.
  • Funds from the sale will be used to reimburse customers affected by FTX’s bankruptcy.

Cryptocurrency exchange FTX, currently in bankruptcy proceedings, has obtained court approval to sell its shares in artificial intelligence startup Anthropic, as ruled by US Bankruptcy Judge John Dorsey in Wilmington, Delaware.

FTX, which initially invested $500 million in Anthropic in 2021, currently owns a 7.84% stake in the company, after its initial 13.56% stake was diluted due to subsequent funding rounds, including a $4 billion investment from Amazon.com.

The court decision followed a settlement reached in court between FTX and a group of exchange clients who had initially opposed the sale.

These clients argued that the firm was not the true owner of the Anthropic shares, as they believed they had been purchased with funds misappropriated from FTX client deposits.

However, they agreed to allow the sale on the condition that they be allowed to argue later that FTX customers own the money generated by the future sale.

FTX receives judicial green light to sell Anthropic shares amid bankruptcy

FTX intends to use proceeds from the sale to refund customers affected by its collapse in 2022

FTX currently has a cash reserve of $6.4 billion, which its representatives say is more than enough to cover repayments.

However, refunds will be calculated based on cryptocurrency prices as of November 2022, rather than current values, which could affect the final refund amount.

The company situation is further complicated by the legal case against its founder, Sam Bankman-Fried, who was found guilty of stealing billions of dollars from customers.

Bankman-Fried’s sentencing is expected to be handed down on March 28, and while he plans to appeal the conviction, the legal uncertainty adds additional pressure to the struggling company.

The sale of Anthropic shares represents an important step in FTX’s process of liquidating assets to repay its clients, as the company faces multiple legal and financial challenges amid its bankruptcy.

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