A U.S. bankruptcy judge has ratified the decision for cryptocurrency exchange, FTX, to liquidate its stake in AI startup, Anthropic. The approval comes as a part of the effort to reimburse the defunct exchange’s creditors. Amid the hearing, Judge John Dorsey of the Bankruptcy Court for the District of Delaware agreed to the sales process after taking creditor opinions into consideration.

Earlier this month, FTX had filed a request seeking permission to vend its nearly 8% stake in Anthropic, a startup its jailed former CEO Sam Bankman-Fried had invested $500 million in 2021. The session also faced some opposition from David Adler, who alleged to represent some of FTX’s creditors, over apprehensions about the preservation of their rights. This issue, however, was settled by slightly altering the order to incorporate clauses about creditor’s rights.

“There is no difference, I would think, between Mr. Adler’s clients’ entitlement as such exists to the proceeds and the disposition of Anthropic and the disposition of any other property interested in the estate, all of which are going into blended unsegregated accounts,” said Andrew Dietderich, a lawyer representing FTX during the hearing. Judge Dorsey conclusively stated the proposed order was appropriate.

The value behind Anthropic had undergone significant changes, with the latest reported valuation of the company reaching as high as $18 billion in December 2023, making FTX’s stake worth around $1.4 billion. The substantial value of the Anthropic shares serves as a beacon of hope for the victims of the FTX collapse. FTX maintains that the company has sufficient funds to offset all customer and creditor claims in totality.

Notably, FTX had previously announced that it planned to cooperate with Anthropic for selling the shares, underlining a sale was “good and sound business.” In its filing, FTX also requested to accelerate the approval process for selling the Anthropic stake.

Source: Judge approves FTX plan to sell $1B stake in AI startup Anthropic.