FTX Seeks Exit from Anthropic Holdings, Proposes Entire 8% Stake Sale

Ruholamin Haqshanas

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Source: Adobe / Александр Поташев

Bankrupt cryptocurrency exchange FTX is seeking approval to sell its 8% stake in AI startup Anthropic Holdings.

The motion, filed by FTX’s current CEO, John Ray III, requests permission to sell the stake and proposes two possible procedures, including an auction or a private sale.

FTX aims to expedite the deliberation process by requesting a shortened period for objections to be raised, with a court hearing scheduled for February 22.

The precise price sought for the Anthropic shares has been redacted from the filing, as FTX’s legal team believes public disclosure could hinder the potential to obtain higher offers for the stake.

Anthropic Holdings achieved a reported valuation of up to $18 billion in December 2023, indicating that FTX’s 7.84% stake could be worth approximately $1.4 billion.

This value has sparked hope among victims of the FTX collapse, as FTX anticipates having sufficient funds to fully repay all customer and creditor claims.

The sale of the stake in Anthropic Holdings represents a significant opportunity for FTX to generate funds and address its financial obligations.

By divesting this illiquid asset, FTX aims to maximize the returns for its stakeholders and fulfill its commitments to customers and creditors.

FTX Files Motion to Sell its Claim Against Genesis

Earlier this month, FTX also filed a motion in a Delaware court to sell its $175 million claim against bankrupt digital financial services firm Genesis Global Capital.

The claim was initially made by Alameda Research, FTX’s associated hedge fund.

If approved, FTX will have the flexibility to sell the claim in its entirety or in parts, taking advantage of the most favorable market conditions.

Currently, claims against Genesis are selling for 65% of their face value, significantly higher than the 38% that Alameda Research claims are fetching.

The motion seeks approval for a sales procedure that would apply to all sales, streamlining the process and reducing costs.

The sale price must be at least 95% of the highest price quoted by leading market-makers for general unsecured claims of Genesis Global Capital within three days of the sale date.

FTX initially sought to recover $3.9 billion from Genesis in May 2023, but later negotiated the reduced claim of $175 million in August 2023, which was approved by the court in October.

The decision to reduce the claim was based on the unpredictable nature of potential recoveries and the desire to avoid lengthy and costly litigation.

Genesis Had $175M in FTX Accounts

FTX faced its own troubles when irregularities were discovered in its accounting books, leading to its collapse in November 2022.

At that time, Genesis had $175 million tied up in FTX accounts, although it claimed this did not affect its market-making activities.

Genesis, a subsidiary of the Digital Currency Group, filed for bankruptcy in January 2023, triggering a contentious dispute with the Gemini cryptocurrency exchange over the impact on the Gemini Earn program.

In a separate development, Genesis recently reached a $21 million settlement with the United States Securities and Exchange Commission regarding the Gemini Earn program. 

This settlement will be considered during a court hearing in New York on February 14, where Genesis debtors’ proposed bankruptcy reorganization plan will also be reviewed.

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