Is Amazon’s investment in Anthropic a win for FTX creditors?

Bankrupt exchange likely to take a “renewed look” at its Anthropic stake and could wait to sell it, lawyer says

article-image

Sundry Photography/Shutterstock modified by Blockworks

share

Just days ahead of the deadline to file proof of claims against FTX, Amazon’s investment — in a firm the bankrupt exchange reportedly has a stake in — could be a win for its creditors.

Time will tell what sort of impact the investment has for those looking to recover funds lost as a result of the FTX implosion last November.

Amazon is set to invest up to $4 billion in artificial intelligence-focused company Anthropic, the latter firm said in a Monday X post. The agreement is “part of a broader collaboration to develop reliable and high-performing foundation models,” the privately held firm said. 

FTX had a $500 million investment in Anthropic, Financial Times reported in November. 

While it is unclear at what valuation FTX acquired its stake in Anthropic, it is likely that the Amazon investment will raise the company’s valuation and, therefore, raise the value of FTX’s stake, said Jared Gianatasio, a partner at law firm Kleinberg Kaplan.

Kleinberg Kaplan’s clients have included investors with frozen FTX accounts and equity shareholders, as well as crypto firms with indirect exposures to the exchange, executives at the law firm previously told Blockworks

Sunil Kavuri, a trader who claims to have lost $2.1 million in the FTX collapse, called the Amazon investment a “massive win” for FTX creditors in a Monday X post

“Time will tell whether the impact on FTX creditors will be meaningful, but I think what is clear is that the value of this asset has appreciated with the increased focus on AI technology,” Gianatasio told Blockworks. “I think the Amazon investment is an example of that.” 

The exchange — currently navigating the bankruptcy process — paused its sale of its stake in Anthropic, sources told Bloomberg News in June. 

John J. Ray III, CEO and chief restructuring officer of FTX, is likely to take a “renewed look” at the stake in an effort to maximize the estate’s assets, Gianatasio said. 

“I would not be surprised, however, if the FTX team does not actively look for a sale of this stake and waits to see how its stake in Anthropic may continue to appreciate in value over the coming months given the rising demand and value being placed in AI technology companies,” he added. 

A spokesperson for Perella Weinberg Partners, an investment bank working with FTX through bankruptcy, declined to comment. A representative from Sullivan & Cromwell — a law firm also working with the exchange — did not immediately return a request for comment. 

Amazon’s investment in Anthropic comes a few days before the Sept. 29 deadline for FTX customers to submit proof of claims — a date set by the US bankruptcy court in June. The company was set to launch a customer claims portal at the time. 

A judge earlier this month approved a plan for FTX to start selling up to $100 million worth of  its digital assets per week. The trial for former FTX CEO Sam Bankman-Fried is set to begin on Oct. 3.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

ao cover.jpg

Research

Arweave recently launched the testnet for AO computer, a new messaging protocol that will sit atop a PoS network and aims to become a scalable global compute platform through parallel processing and modularity.

article-image

Regulators in South Korea, Japan and Singapore could follow Hong Kong’s lead as Asia responds to spot bitcoin ETF approval in the US

article-image

Martin Grant worked with the Fed for roughly 30 years before leaving his position in 2022

article-image

BitGo CEO Mike Belshe shared his thoughts on the halving and bitcoin ETFs in an interview with Blockworks

article-image

Crypto markets were largely the only ones open over a tense weekend, and they took a beating for it

article-image

Though some expect most public miners to survive the halving, the segment’s most vulnerable could fall victim to consolidations and defaults

article-image

The US spot bitcoin fund category has notched negative net flows over the course of a week just three times since coming to market in January