SpaceX Surge Could Be Worth Billions for FTX—Will Creditors Benefit?

FTX, the defunct cryptocurrency exchange, holds indirect exposure to SpaceX through its investment in a venture capital fund, according to a court filing on May 23, 2024. This investment, made in 2022, has become a point of interest for FTX creditors as SpaceX's valuation has surged. The venture capital fund, which invested in SpaceX, is reportedly valued at approximately $2.6 billion, with FTX's share of this fund estimated to be around $100 million. This valuation is based on SpaceX's recent private market transactions, which indicate a significant increase in the rocket manufacturer's worth. Creditors are hopeful that this asset could provide a substantial recovery for the funds lost when FTX collapsed in November 2022. The exact amount FTX could recover from this investment remains subject to the ongoing bankruptcy proceedings and the final valuation of the venture capital fund's holdings. The court filing aims to provide transparency to creditors regarding FTX's remaining assets and potential recovery pathways. This indirect stake in SpaceX represents one of several avenues FTX is exploring to recoup losses for its users and investors.