FTX’s liquidation team recently sold their stake in Anysphere, the company behind Cursor AI, for a minimal amount despite the startup’s valuation surging significantly. This sale underscores potential vulnerabilities when managing distressed assets during bankruptcy proceedings, highlighting broader implications for venture-backed companies. Anysphere, founded by MIT alumni in 2022, developed Cursor AI at the intersection of artificial intelligence and software development. FTX initially invested $200,000 in Anysphere before it later received a $9 billion valuation following a recent $900 million funding round led by prominent venture capital firms as reported by Human Jets. Despite the surge, the liquidation team sold their stake for just $200,000, missing an estimated $500 million. 500M. This sale highlights risks associated with asset undervaluation during volatile market conditions. It is reminiscent of similar situations observed in past financial crises like Lehman Brothers or Dotcom’s collapse. While official statements from Anysphere or FTX are awaited, The Block suggests that market participants acknowledge the inherent challenges in such sales. Notably, major cryptocurrencies like Bitcoin and Ethereum have not shown any significant reactions to this event, indicating its limited impact on broader crypto markets. This sale could contribute to increased scrutiny of distressed asset management practices and their effects on the venture capital industry. Regulatory reviews are possible.