Former Crypto Tycoon's Defunct Company to Sell $500M Stake in Anthropic to UAE FirmFTX to Divest Shares in Anthropic for $880M Amidst Bankman-Fried's Conviction. Credit: techxplore.com

According to a court filing on Monday, FTX, the defunct company formerly run by the disgraced crypto tycoon Sam Bankman-Fried, is set to divest two-thirds of its shares in the popular AI startup Anthropic for a whopping $880 million.

These Anthropic shares were once considered as highly valuable assets in what remained of the FTX empire, which crumbled in late 2022 after shocking revelations of widespread fraud committed by Bankman-Fried and his associates came to light. Bankman-Fried, who is now 32 years old, was subsequently found guilty on multiple charges in November 2023 and is scheduled to be sentenced at a federal court in New York on Thursday. Prosecutors are seeking a prison term of anywhere between 40 to 50 years for the convicted scammer.

The majority of the shares in Anthropic will be acquired by ATIC Third International Investment Company, a firm associated with the Mubadala sovereign wealth fund in the United Arab Emirates, as per the court filing. ATIC has agreed to pay a hefty sum of $500 million for its stake in Anthropic, while the remaining shares will be purchased by nearly 20 other investors, including Jane Street Global Trading, Bankman-Fried's former employer.

This sale is expected to generate significant profits for FTX, as the company had initially invested $500 million in Anthropic back in 2021, when it was at the peak of its success as a major player in the world of cryptocurrency.

Anthropic, founded in the same year, was established by former employees of OpenAI, the company behind the renowned chatbot ChatGPT. The startup gained recognition for its AI model, Claude, and its commitment to releasing models with stricter controls in comparison to its competitors.

The bankruptcy proceedings for FTX have been long and contentious, with court-appointed CEO John J. Ray III tasked with recovering assets for creditors. FTX has assured its customers that they will be fully repaid, and according to the Wall Street Journal, the company reported having a cash reserve of $6.4 billion as of late February.

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