As part of the deal, the debtors will sell approximately $95 million in preferred shares to Mysten Labs, in addition to $1 million in SUI tokens.
On Thursday, March 23, debtors of crashed crypto exchange FTX filed a motion in bankruptcy court seeking a $95 million stake in Delaware-based Web3 firm Mysten Labs.
Crypto exchange FTX has survived to pay its clients affected by the exchange’s crash last year in November 2022. Before it crashed, FTX had paid $101 million last year for Mysten Labs preferred shares and also led a round of financing valuing Web3 company at more than $2 billion.
Mysten Labs is a proof-of-stake blockchain that runs on an open source programming language called Move with its native cryptocurrency called SUI tokens. The Web3 platform is scheduled for a full release in Q2 2023.
On Thursday, March 22, the FTX debtors filed their documents with the United States Bankruptcy Court in Delaware. As part of the deal, the debtors will sell approximately $95 million in preferred shares to Mysten Labs, in addition to $1 million in SUI tokens. Presentation notes:
“The Debtors have carefully considered and analyzed the offer as set forth in the Agreement in comparison with their other options and have concluded that the sale of the Interests will result in obtaining the maximum value for the Interests, and is in the best interests of the assets of the Debtors. and creditors The purchase price is equal to approximately 95% of the amount that FTX Ventures had originally invested in the preferred shares of the company subject to the buyer, plus 100% of the amount that the sellers paid for SUI token collaterals ”.
Agreement subject to court approval
However, the sale of FTX’s stake in Mysten Labs will be subject to court approval. according to him motionMysten Labs submitted the offer to claim FTX’s stake last week on March 16. This was deemed to be an “attractive offer that would enable the Debtors to recoup a significant amount of the value that the Debtors invested” through FTX.
The offer, however, expired at the end of April. In separate correspondence, Mysten Labs also conveyed to FTX its “desire to consummate a transaction expeditiously.”
During their March 22 filing, the debtors in the FTX case announced they plan to recover $460 million in user funds from venture capital firm Modulo Capital. The filing also alleges that Alameda Research’s investment was at the direction of former FTX CEO Sam Bankman-Fried and misappropriation of funds.
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Bhushan is a FinTech enthusiast and has a good knack for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrencies. He is continuously in a learning process and stays motivated by sharing the knowledge he has acquired. In his spare time, he reads thrillers and sometimes explores his culinary skills.
