One of the most criticized examples involves a 5% stake in AI company Cursor that the estate sold for roughly $200,000 in 2023. By 2026, that same stake would reportedly have been worth around $3 billion following the explosion of AI valuations.

Critics argue the liquidation process prioritized immediate recovery over long term value preservation, causing creditors to miss major upside from assets sold during depressed market conditions. Supporters of the recovery process counter that bankruptcy administrators were operating under extreme uncertainty during one of the most chaotic periods in crypto history.

The broader debate highlights a difficult reality in large crypto bankruptcies: recovering assets quickly can stabilize payouts, but selling too early during market downturns may permanently destroy billions in future value.