News View Non-AMP

FTX Sold Cursor Stake for $200K – Now It’s Worth $500 Million

Published by
Andrea

Crypto never sleeps, and neither do its billion-dollar blunders. 

According to FT, AI code editor Cursor just closed a jaw-dropping $900 million funding round at a $9 billion valuation. 

But while top VCs like Thrive Capital, a16z, and Accel are celebrating, there’s one name glaringly missing from the winners’ circle: FTX. Here’s why.

From $200K to $500M: What Went Wrong?

Back in 2022, Alameda Research – FTX’s sister trading firm – quietly invested $200,000 into Cursor’s seed round. Fast forward to today, and that stake could be worth an estimated $500 million

Unfortunately for FTX creditors, the platform’s liquidators sold it off for the exact amount it was purchased at: $200,000. No markup.Just a clean exit… from half a billion dollars in potential recovery. Ouch, right? 

Cursor’s Impressive Rise

Cursor, built by Anysphere Inc., is trying to redefine how developers write code. With a sleek split-screen interface and AI-powered chatbot, Cursor allows users to automate complex coding tasks using simple natural language prompts. It analyzes, breaks down tasks, fetches context from documentation, and applies real-time changes.

Its engine runs on models from OpenAI and Google, along with its own internal model, Cursor-Fast. And with over $200 million in annual recurring revenue, the momentum is great. 

FTX’s Loss, Big Tech’s Gain?

This funding round wasn’t too hush-hush. Thrive Capital led the $900M investment, the same firm that backed OpenAI’s $6.6B round last year. 

The buzz? OpenAI reportedly tried – and failed – to acquire Anysphere earlier this year. They’re now eyeing Windsurf (Exafunction Inc.) for up to $3 billion instead.

If we’re being real…

This seems like a major loss for FTX. Is there more than meets the eye? Guess we’ll know with time. 

FAQs

What happened to FTX?

FTX collapsed in November 2022 after it was revealed that the company misused customer funds and faced a massive liquidity crisis. This led to bankruptcy, legal investigations, and major losses for users and investors.

How are FTX lawsuits connected to FTX repayment efforts?

FTX lawsuits aim to recover missing crypto assets from companies and individuals. These recovered assets will directly contribute to increasing the FTX repayment pool for creditors.

Andrea

Recent Posts

XRP News Today: VivoPower Announces a $121M Private Funding to Become First XRP Treasury-focused Publicly Traded Company

VivoPower International PLC (NASDAQ: VVPR) announced that it raised $121 million by selling 20 million…

May 29, 2025

Bitcoin 2025 Conference Concludes on Thursday: Key Takeaway Points from High-profile Speakers

The Bitcoin 2025 Conference, held at the Venetian Convention Center in Las Vegas between May…

May 29, 2025

Top Crypto Predictions for June 2025: TON, SPX, PI, KAS, XDC

The markets continue to remain consolidated within a narrow range as the prices of the…

May 28, 2025

Cactus Custody and Chorus One Partner to Unlock the Future of Institutional Ethereum Staking

Institutional interest in blockchain technology continues to rise and the demand for secure, efficient, and…

May 28, 2025

5 Altcoins to Watch for 100% in Profits by June 2025

Dramatic upswings are nothing new to the cryptocurrency market, particularly when the macroeconomic environment supports…

May 28, 2025

Investors Who Enjoyed Shiba Inu’s (SHIB) Life-Changing Climb in 2021 Will Love Salamanca (DON) Token in 2025

Salamanca (DON) is gaining rapid traction across major trading platforms, including Gate.io, MEXC, and PancakeSwap.…

May 28, 2025