- March 24, 2023
- Posted by: AliensFaith
- Category: OBJECTIVE PRESS
The bankrupt crypto exchange, FTX has agreed to sell Mysten Labs Inc. preferred shares back to the Web3 startup for $95 million, according to the fillings at the U.S. Bankruptcy Court in Delaware on Thursday. The startup will additionally acquire SUI tokens worth $1 million.
FTX Led $300M Mysten Labs Funding Round
The debtors of FTX have already approved the proposed sale, which is now pending higher bids and court permission. FTX and Mysten agreed to release the claims mutually.
“The Debtors carefully considered and analyzed the offer as set forth in the Agreement in comparison to its other options and concluded that a sale of the Interests will result in obtaining maximum value for the Interests, and is in the best interests of the Debtors’ estates and creditors,” the court filing stated.
“The Purchase Price is equal to approximately 95% of the amount FTX Ventures had originally invested in the Preferred Stock of Purchaser-Subject Company, plus 100% of the amount Sellers paid for the SUI Token Warrants.”
The venture capital arm of the bankrupt exchange, FTX Ventures Ltd., bought stakes in Mysten Labs for roughly $101 million in August, just a few months ahead of the collapse. The $300 million funding round led by FTX Ventures put the valuation of Mysten Labs at $2 billion.
FTX locks in $96 million deal to sell Mysten Labs shares and SUI Token warrants.Originally acquired in August 2022 for $101 million. pic.twitter.com/7PdfIM6uDT
— FTX 2.0pium (FTX Creditor) (@AFTXcreditor) March 23, 2023
Recovery Attempts in Desperation
The sale came at a loss when the bankruptcy lawyers of FTX were desperately trying to shore up funds to compensate the customers of the collapsed exchange. Recently, the debtors of FTX approved the recovery of $460 million from the venture capital firm, Modulo Capital, which received investments from Alameda Research last year.
Alameda, which was the trading arm of the collapsed FTX empire, also filed a lawsuit against the crypto asset manager, Grayscale for the recovery of $250 million, which will be used to compensate FTX’s debtors and creditors.
Meanwhile, a U.S. court approved the sale of four FTX subsidiaries, which operated independently from the tainted parent organization. These entities are CFTC-regulated derivatives exchange LedgerX LLC, the equities-trading platform Embed Technologies, FTX Japan Holdings, and FTX Europe.
This article was written by Arnab Shome at http://www.financemagnates.com.
