FTX to sell $95 Mln stake in Web3 firm Mysten Labs

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Key Takeaways

  • The Mysten Labs offer comprises $95 million in preferred stock and $1 million worth of SUI token warrants
  • Last year, Mysten secured $300 million in a Series B funding round led by FTX Ventures.

On Thursday, bankrupt crypto empire FTX’s debtors filed a motion in court looking to sell $95 million worth of preferred stock back to Web3 firm Mysten in addition to $1 million in SUI tokens.

“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 filing reads.

FTX debtors in the US Bankruptcy Court in the District of Delaware had proposed a deal in which Mysten Labs and the firm would agree to a mutual release of claims.

“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 filing reads.

The agreement deal is subject to court approval and the possibility of other bids on the stock before being finalized. FTX’s association with Mysten Labs goes back to 2022. In September 2022, Mysten- a web3 infrastructure company and developer of the Sui Layer 1 blockchain, announced that it had secured $300 million in a Series B funding round led by crypto exchange venture arm FTX Ventures.

The latest development in the FTX bankruptcy saga comes amid the exchange looking to recover $460 million of allegedly misappropriated customer funds from venture capital firm Modulo Capital. FTX’s sister trading firm — Alameda Research, is reported to have invested around $400 million in Modulo in 2022.

FTX also announced last week that it was investigating more than $3.2 billion transferred out of the company through payments and loans to company founders and key employees.

FTX’s bankruptcy case has been ongoing ever since the firm filed for Chapter 11 protection in November last year. In addition, FTX founder and former CEO Sam Bankman-Fried face criminal as well as civil cases for his involvement in alleged fraudulent activities at the exchange.

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Saniya Raahath
Saniya Raahath

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