Debtors of bankrupt cryptocurrency exchange FTX have approved a deal that would sell their preferred shares in Mysten Labs, the company behind the Sui blockchain.
In a March 22 filing with the United States Bankruptcy Court for the District of Delaware, FTX’s debtors proposed a settlement in which Mysten Labs and the company would agree to a mutual release of claims. As part of the deal, the debtors planned to sell Mysten about $95 million worth of preferred shares, in addition to $1 million worth of SUI tokens.
“The Debtors have carefully considered and analyzed the offer as set forth in the Agreement in comparison to their other options and have concluded that a sale of the Interests will result in obtaining the maximum value for the Interests, and is in the best interest of the Estates and creditors from debtors,” the filing said. “The purchase price is equal to approximately 95% of the amount that FTX Ventures had originally invested in the preferred shares of the buyer-subject company, plus 100% of the amount that the sellers paid for the collateral SUI tokens.” .
The transaction is reportedly subject to court approval, as well as the possibility of other offers for the shares before closing. FTX Ventures acquired the shares as part of a $300 million funding round for Mysten announced in September 2022. The investment also came before FTX filed for Chapter 11 bankruptcy in November.
Debtors in the FTX bankruptcy case also announced on March 22 that they planned to recover USD 460 million in funds from users of the venture capital firm Modulo Capital. The request alleged that Alameda Research’s investment was made under the direction of former FTX CEO Sam Bankman-Fried and that it was a misappropriation of funds. Bankman-Fried is facing multiple charges in federal court related to alleged fraud during his tenure as a senior executive at the exchange, and has pleaded not guilty to all charges.
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