FTX's exposure to SpaceX could reach tens of billions of dollars

Odaily News After SpaceX's listing, its market capitalization rose to over $2.52 trillion. Creditors of the bankrupt crypto exchange FTX are closely watching whether its related exposure will increase the recovery of the bankruptcy estate. Before its collapse in 2022, FTX indirectly held an investment in SpaceX through venture capital firm K5 Global. FTX recovery trust CEO John J. Ray III 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 significant funds to K5-related entities, and K5's funds invested $190 million in SpaceX before FTX's collapse. Creditor representative Kyle Schmidt previously estimated that customers with claims exceeding $50,000 could ultimately receive a distribution equivalent to 171% of their claim amount. FTX has 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 tens of billions of dollars. (Decrypt)