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FTX's exposure to SpaceX may amount to billions of dollars
Svmuu News: Following its IPO, SpaceX’s market capitalization has risen to over $2.52 trillion, and creditors of the bankrupt crypto exchange FTX are monitoring whether their related exposure will increase the recovery from the bankruptcy estate. Prior to its collapse in 2022, FTX indirectly held an investment in SpaceX through the venture capital firm K5 Global. John J. Ray III, CEO of the FTX Recovery Trust, reached a settlement with K5 Global last January, with both parties agreeing to cooperate to maximize recoveries for FTX stakeholders. Bankruptcy filings show that Alameda Research transferred substantial funds to entities affiliated with K5, and funds managed by K5 invested $190 million in SpaceX prior to FTX’s collapse. Kyle Schmidt, a representative of creditors, previously estimated that clients with claims exceeding $50,000 could ultimately receive distributions of up to 171% of their claims; FTX has already distributed $10.3 billion to clients. FTX creditor Sunil Kavuri stated that, based on SpaceX’s current market capitalization, FTX’s exposure to SpaceX could be worth tens of billions of dollars. (Decrypt)
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