Kashif Saleem
Anthropic, a rival of OpenAI, recently announced its successful capital raise of up to $4 billion from Amazon and $2 billion from Google and other investors. This significant development brings potential relief for FTX creditors, who seek to recover their funds after the bankrupt crypto exchange’s substantial investment of $500 million in Anthropic last year.
Read Also: Breaking: Amazon To Invest $4 billion In OpenAI Rival Anthropic
Anthropic’s Valuation Could Boost Ftx’s Stake
FTX had invested $500 million in Anthropic before the FTX collapse in 2022. The exact amount FTX paid for its stake remains unclear. However, the recent funding rounds led by Amazon and Google are expected to boost Anthropic’s overall worth and FTX’s stake.
Kunchou Tsai, the managing partner of Enlighten Law Group, expressed that with the influx of new funds and a potential increase in company valuation, FTX could potentially achieve a “100% recovery rate” in assets as part of the bankruptcy proceedings for the failed crypto exchange.
Furthermore, Kris Marszalek, co-founder and CEO of Crypto.com, tweeted about the possibility of maximizing recovery chances and achieving full recovery if FTX liquidators act wisely for creditors’ benefit regarding their stake in Anthropic.
If the FTX liquidators play it smart and act in the interest of creditors — two big ifs — the Anthropic stake should vastly improve the recovery chances, with potential for a full recovery.
Anthropic is at 20b valuation now.
— Kris | Crypto.com (@kris) October 3, 2023
Anthropic’s Stake Could Face Legal Challenges
However, there are still some uncertainties and challenges regarding FTX’s stake in Anthropic. One major concern is the ambiguity surrounding the timing for FTX’s bankruptcy restructuring team to sell off their stake. They may have to wait until Anthropic becomes a publicly traded company or until certain special circumstances arise.
Sam Bankman-Fried faces lawsuits from multiple entities, including creditors, former FTX employees, and government agencies. These legal battles could potentially impact the priority and distribution of Anthropic’s stake.
Tsai explained that if Bankman-Fried personally invested in Athropic outside of FTX, those who have sued him separately may argue for precedence in receiving payment.
Thomas Braziel, a partner at 117 Partners and 507 Capital, two firms specializing in purchasing bankruptcy claims and distressed debt, says that the Anthropic raise brings positive news for creditors.
“If there’s $10 billion of liabilities, just to keep the math simple, and this is $3 billion, that’s 30 cents. I mean that’s huge. That’s absolutely huge,” Braziel said.
Anthropic’s Raise Sparks Trading of Ftx Claims
The positive perspective on the potentially improved recovery has sparked active trading of FTX bankruptcy claims in the over-the-counter market. According to Tsai, he has assisted several clients in Chinese-speaking regions with selling their FTX claims in the U.S., emphasizing increased interest from certain hedge funds.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.