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 FTXโ€™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.

โ€œThe 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 Debtorsโ€™ estates and creditors,โ€ 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.

โ€œThe 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 Warrantsโ€, the filing reads.

The agreement deal is subject to court approval and the possibility of other bids on the stock before being finalized. FTXโ€™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. FTXโ€™s sister trading firm โ€” 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.

FTXโ€™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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