FTX CEO Sells Remaining Shares in AI Startup Anthropic
The FTX estate, under the leadership of CEO John Ray III, has divested all its remaining shares in Anthropic, an AI startup recognized for its chatbot Claude, as outlined in the company’s recent bankruptcy documents.
- FTX sold the last 15 million shares at about $30 each, generating over $450 million in earnings.
- This sale brings FTX’s total profits from their initial $500 million investment in Anthropic to approximately $1.3 billion, resulting in a profit of around $800 million.
- The price per share for this sale matched that of the first sale carried out in March.
FTX Bankruptcy Costs Soar
In conjunction with these transactions, the expenses associated with FTX’s bankruptcy have exceeded $500 million in legal and administrative fees, as per information from The Block.
- FTX creditors are worried about a potential conflict of interest because the main law firm handling FTX’s bankruptcy, Sullivan and Cromwell, had previously represented FTX.
- These circumstances have led to the appointment of an independent examiner and a subsequent class-action lawsuit.
- A New York Times investigation from last year uncovered law firms charging hundreds of millions in fees for bankruptcies involving cryptocurrency companies.
Former FTX Co-CEO Receives 7.5-Year Sentence
Ryan Salame, the former co-CEO of FTX Digital Markets, has been sentenced to 7.5 years in prison by a federal judge after admitting to two felony charges.
- The sentencing occurred on May 28, 2024, in the US District Court for the Southern District of New York, under the direction of Judge Lewis Kaplan.
- Salame pleaded guilty in September 2023 and awaited sentencing.
- Salame had requested leniency from the court with an 18-month sentence.
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