FTX creditors may receive larger-than-expected payouts due to the recent surge in SpaceX's stock price. The defunct crypto exchange took a stake in Elon Musk's rocket-maker before its collapse, and with SpaceX's market cap now over $2.5 trillion, some customers harmed by FTX are keeping a close eye on the firm's performance.
Sunil Kavuri, a British investor who lost around $2 million to FTX's implosion, noted that 'it's always great news seeing good investments that could help recovery and payment to FTX creditors.' The bankruptcy estate has doled out $10.3 billion to customers so far, but with SpaceX shares hitting new highs after an all-stock deal to acquire AI coding startup Cursor, some are predicting larger-than-expected payouts.
FTX's exposure to SpaceX stemmed from a relationship cultivated between co-founder Sam Bankman-Fried and Michael Kives, a 'super-networker' who co-owns venture firm K5 Global. The defunct exchange had invested $190 million in SpaceX through K5 before its collapse, and with the rocket-maker's current market value, that investment is likely worth several billion dollars.
Bankman-Fried was accused of stealing over $8 billion worth of customer funds during his tenure as FTX CEO, and some have questioned whether the bankruptcy estate will be able to recover significant amounts for creditors. However, K5 Global's CEO, Bryan Baum, has stated that 'it is clear that K5 is a bright spot in the FTX portfolio,' and that expected strong performance of their investments will be a key driver in the recovery efforts.