The US government has sold a $627 million equity stake in AI startup Anthropic originally acquired by Alameda Research CEO Caroline Ellison and FTX executive Nishad Singh, directing the cash proceeds to the FTX bankruptcy estate.
Forfeited Stock Sold at $140.96 Per Share
In 2022, Ellison and Singh invested $50 million into Anthropic. Following the collapse of FTX and their subsequent guilty pleas—where both testified against founder Sam Bankman-Fried, who is currently serving a 25-year prison sentence—a court ordered the forfeiture of their shares as proceeds of crime. The government officially assumed legal ownership of the holdings by April 2025.
According to Anthropic's S-1 public filing submitted on October 26 ahead of its planned Nasdaq listing under ticker ANT, the company described 4,453,900 Series B shares that "had been forfeited by former holders in legal proceedings to which we were not a party." That count matched their initial $50 million purchase, as reported by Business Insider. Anthropic repurchased the shares from the government in October 2025 at $140.9676 each before reselling them at cost to nine undisclosed buyers. The transaction arrived amid broader market attention detailed in Anthropic IPO Filing Drives Semiconductor Rally Amid $2 Trillion Valuation Debate.
Creditor Payouts and Investor Upside
The cash from the sale went to the FTX bankruptcy estate to repay affected customers. Court filings show the Justice Department transferred $638 million to the estate in late 2025. "One of the Justice Department’s top priorities is returning forfeited funds to victims through the asset forfeiture program whenever the law allows," stated a spokesperson for the Justice Department. The capital contributed to ongoing distribution rounds, including a $900 million fifth payout issued in July.
While creditors receive fixed cash distributions, the nine private buyers now hold equity that could be worth $3.94 billion under a $1.5 trillion valuation—representing a potential sixfold return. The sale, which was reportedly conducted by the US Marshals Service, follows the bankruptcy estate's 2024 sale of Sam Bankman-Fried’s separate $500 million Anthropic position for $1.3 billion.
Key Takeaways
- US government sold 4,453,900 Series B Anthropic shares for $627 million at $140.9676 per share in October 2025.
- The Justice Department sent $638 million in late 2025 to the FTX estate, helping fund a $900 million fifth payout in July.
- Nine private buyers purchased the equity at cost, holding shares potentially worth $3.94 billion at a $1.5 trillion valuation.
- The holdings originated from a $50 million 2022 investment by Caroline Ellison and Nishad Singh forfeited after FTX's collapse.
Why It Matters
The liquidation of forfeited Anthropic shares marks one of the largest single asset recoveries for FTX victims, converting seized criminal proceeds directly into distribution capital. However, the transaction highlights a stark valuation gap between immediate bankruptcy liquidations and private equity upside. As Anthropic prepares to trade publicly under ANT, secondary market pricing will determine whether the government's fixed-price sale left significant long-term value on the table that could have otherwise benefited estate claimants.
