Blab Crypto
Binances Walk-Away From FTX Deal Leaves a $100 B Portfolio Behind
When Binance’s chief executive, Changpeng Zhao, announced in November 2022 that the company would liquidate its holdings of FTX’s native token, FTT, and then pursue a non‑binding letter of intent to acquire FTX’s non‑U.S. operations, the market held its breath. A day later, after a rapid due‑diligence review exposed a deep deficit of client funds, a tangled relationship with Alameda Research, and ongoing U.S. regulatory investigations, Binance pulled the plug. The abrupt withdrawal sent shockwaves that culminated in the collapse of FTX, the $32 billion‑valued exchange that had risen to become the world’s third‑largest.
Binance’s decision is widely interpreted as a defensive maneuver designed to shield the company from inheriting FTX’s liabilities. Yet the aborted acquisition also meant that Binance walked away from a venture‑capital portfolio that, by 2026, had swelled to an estimated value north of $100 billion. Alex Svanevik, CEO of blockchain analytics firm Nansen, noted that the portfolio contained early‑stage equity in firms that have since become leaders in artificial intelligence and space technology.
Among the most valuable holdings in FTX’s treasury was a $500 million investment in Anthropic, a safety‑focused AI research company founded by former OpenAI executives. Anthropic’s valuation has since climbed to more than $600 billion, with some private transactions hinting at a valuation closer to $900 billion. An 8 % stake in the company would therefore be worth between $70 billion and $90 billion today.
Other significant assets included a 5 % stake in Cursor, an AI‑powered code editor that later secured a $60 billion valuation after a funding round that involved SpaceX. The stake was sold back to Cursor’s founders for $200,000 during the 2023 bankruptcy proceedings, but the company’s subsequent valuation makes the original stake worth roughly $3 billion.
FTX also held a substantial position in Solana (SOL). The exchange accumulated about $60 million worth of SOL when the token traded near $8 during the market crash. When SOL reached its peak, the value of that position swelled to an estimated $21 billion.
The collapse was triggered by a run on FTX that began after CoinDesk reported that Alameda Research had a large portion of its assets in FTT. Binance’s announcement to liquidate its FTT holdings sparked a spike in withdrawals. Caroline Ellison, former CEO of Alameda, publicly offered to buy back Binance’s FTT at $22 per token, a move that revealed the collateral floor to market participants. High‑frequency traders and short sellers then forced the price below $22, driving FTT below $5 in 72 hours. The loss of collateral triggered margin calls that drained $6 billion in customer assets.
In his memoir Freedom of Money, Zhao describes the situation: “He asked for billions of dollars nonchalantly, as if he were asking for a bologna sandwich.” Zhao maintains that his intent was to protect the broader decentralized finance ecosystem, not to acquire FTX. He also notes that inheriting FTX’s liabilities would have exposed Binance to serious legal action.
Following the bankruptcy filing, the court‑appointed restructuring team led by insolvency expert John J. Ray III recovered cash, property and the illiquid venture assets. The recovery of the Anthropic holdings and other assets enabled the estate to offer a historic settlement, paying back 100 % of verified claims with interest—an outcome that is rare in large corporate bankruptcies.
The FTX case illustrates how a failed merger can have long‑term implications for market participants and the broader industry. While Binance avoided immediate legal exposure, the missed acquisition left a $100 billion‑plus portfolio in the hands of the bankruptcy estate, reshaping the distribution of wealth in the AI and space sectors.
The episode also underscores the importance of rigorous due‑diligence and regulatory compliance in the crypto industry. The rapid collapse of FTX sent shockwaves through the market, contributing to a broader crypto winter that saw Bitcoin fall to its lowest level in two years.
As the industry continues to evolve, the FTX bankruptcy remains a case study in the intersection of cryptocurrency, venture capital, and regulatory oversight. The recovery of FTX’s assets and the settlement of creditor claims are ongoing, with the court overseeing the distribution of proceeds.
The story of Binance’s walk‑away from FTX serves as a reminder that the most significant outcomes in the crypto world are often shaped by what does not happen, as much as by what does.
Binance’s decision is widely interpreted as a defensive maneuver designed to shield the company from inheriting FTX’s liabilities. Yet the aborted acquisition also meant that Binance walked away from a venture‑capital portfolio that, by 2026, had swelled to an estimated value north of $100 billion. Alex Svanevik, CEO of blockchain analytics firm Nansen, noted that the portfolio contained early‑stage equity in firms that have since become leaders in artificial intelligence and space technology.
Among the most valuable holdings in FTX’s treasury was a $500 million investment in Anthropic, a safety‑focused AI research company founded by former OpenAI executives. Anthropic’s valuation has since climbed to more than $600 billion, with some private transactions hinting at a valuation closer to $900 billion. An 8 % stake in the company would therefore be worth between $70 billion and $90 billion today.
Other significant assets included a 5 % stake in Cursor, an AI‑powered code editor that later secured a $60 billion valuation after a funding round that involved SpaceX. The stake was sold back to Cursor’s founders for $200,000 during the 2023 bankruptcy proceedings, but the company’s subsequent valuation makes the original stake worth roughly $3 billion.
FTX also held a substantial position in Solana (SOL). The exchange accumulated about $60 million worth of SOL when the token traded near $8 during the market crash. When SOL reached its peak, the value of that position swelled to an estimated $21 billion.
The collapse was triggered by a run on FTX that began after CoinDesk reported that Alameda Research had a large portion of its assets in FTT. Binance’s announcement to liquidate its FTT holdings sparked a spike in withdrawals. Caroline Ellison, former CEO of Alameda, publicly offered to buy back Binance’s FTT at $22 per token, a move that revealed the collateral floor to market participants. High‑frequency traders and short sellers then forced the price below $22, driving FTT below $5 in 72 hours. The loss of collateral triggered margin calls that drained $6 billion in customer assets.
In his memoir Freedom of Money, Zhao describes the situation: “He asked for billions of dollars nonchalantly, as if he were asking for a bologna sandwich.” Zhao maintains that his intent was to protect the broader decentralized finance ecosystem, not to acquire FTX. He also notes that inheriting FTX’s liabilities would have exposed Binance to serious legal action.
Following the bankruptcy filing, the court‑appointed restructuring team led by insolvency expert John J. Ray III recovered cash, property and the illiquid venture assets. The recovery of the Anthropic holdings and other assets enabled the estate to offer a historic settlement, paying back 100 % of verified claims with interest—an outcome that is rare in large corporate bankruptcies.
The FTX case illustrates how a failed merger can have long‑term implications for market participants and the broader industry. While Binance avoided immediate legal exposure, the missed acquisition left a $100 billion‑plus portfolio in the hands of the bankruptcy estate, reshaping the distribution of wealth in the AI and space sectors.
The episode also underscores the importance of rigorous due‑diligence and regulatory compliance in the crypto industry. The rapid collapse of FTX sent shockwaves through the market, contributing to a broader crypto winter that saw Bitcoin fall to its lowest level in two years.
As the industry continues to evolve, the FTX bankruptcy remains a case study in the intersection of cryptocurrency, venture capital, and regulatory oversight. The recovery of FTX’s assets and the settlement of creditor claims are ongoing, with the court overseeing the distribution of proceeds.
The story of Binance’s walk‑away from FTX serves as a reminder that the most significant outcomes in the crypto world are often shaped by what does not happen, as much as by what does.
