FTX's SpaceX Exposure May Reach Billions of Dollars

Odaily reported that SpaceX's market capitalization has risen to over $2.52 trillion following its listing. Creditors of the bankrupt crypto exchange FTX are focusing on whether its related exposure will increase the bankruptcy estate recovery. Before its collapse in 2022, FTX indirectly held investments in SpaceX through venture capital firm K5 Global. FTX Recovery Trust CEO John J. Ray III reached a settlement with K5 Global in January last year, with both parties agreeing to cooperate to maximize recoveries for FTX stakeholders. Bankruptcy filings show that Alameda Research transferred significant funds to entities affiliated with K5, and K5's funds invested $190 million in SpaceX prior to FTX's collapse. Creditor representative Kyle Schmidt previously estimated that customers with claims exceeding $50,000 could ultimately receive distributions amounting to 171% of their claims, with FTX having already distributed $10.3 billion to customers. FTX creditor Sunil Kavuri stated that based on SpaceX's current market valuation, FTX's exposure to SpaceX could be worth billions of dollars. (Decrypt)