Former FTX CEO and co-founder, Sam Bankman-Fried, is currently serving more than 20 years behind bars after being convicted of fraud and conspiracy charges in 2023. An investment made by Bankman-Fried on behalf of FTX could have turned into huge profits, but was sold while the former crypto figure was in prison.
What Happened: AI company Anthropic recently raised $1.3 billion in a new funding round, valuing the company at $183 billion.
Lightspeed Venture Partners and Fidelity Management & Research led the funding round that nearly tripled the valuation of Anthropic, which was worth $61.5 billion in a March funding round.
The AI company has been a hot commodity in the sector and has drawn investments from several tech giants, including Amazon.com Inc (NASDAQ:AMZN) and Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL).
Founded in 2021, Anthropic previously counted cryptocurrency exchange company FTX among its investors. Led by Bankman-Fried, FTX took a $500 million investment in Anthropic when the company was valued at $2.5 billion. The investment led to an 8% equity stake in Anthropic.
Missed Profits: The bankruptcy of FTX led to the company selling off assets, including its stakes in startups that Bankman-Fried helped fund during his time at the company.
In 2024, FTX sold its 8% stake in Anthropic in two rounds, netting totals of $884 million and $450 million. Together, the two sales generated $1.3 billion for FTX, which was a 160% gain on the original investment.
While FTX took gains on its stake in Anthropic as part of the bankruptcy process, the stake would be worth significantly more now.
Based on the new funding round valuing Anthropic at $183 billion, the previous 8% stake owned by FTX would be worth $14.64 billion. This means the company missed out on potential profits of $13.3 billion.
Since the time of Bankman-Fried's investment in the company, Anthropic's valuation has increased significantly.
While Bankman-Fried may have recognized Anthropic's potential early on, he failed to benefit from the profits and returns due to his imprisonment.
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