<p>The bankrupt <a href="https://www.financemagnates.com/tag/ftx/" target="_blank" rel="follow">crypto exchange, FTX</a> 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.</p><p>FTX Led $300M Mysten Labs Funding Round</p><p>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.</p><p>“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.</p><p>“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.”</p><p>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 <a href="https://www.financemagnates.com/cryptocurrency/ftx-the-rise-the-fall-and-the-reaction/" target="_blank" rel="follow">ahead of the collapse</a>. The $300 million <a href="https://www.financemagnates.com/terms/f/funding-round/" class="terms__main-term" id="d08fbe2e-fff7-405c-9466-eaaa94820467">funding round</a> led by FTX Ventures put the valuation of Mysten Labs at $2 billion.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">FTX locks in $96 million deal to sell Mysten Labs shares and SUI Token warrants.Originally acquired in August 2022 for $101 million. <a href="https://t.co/7PdfIM6uDT">pic.twitter.com/7PdfIM6uDT</a></p>— FTX 2.0pium (FTX Creditor) (@AFTXcreditor) <a href="https://twitter.com/AFTXcreditor/status/1638930052166348802?ref_src=twsrc%5Etfw">March 23, 2023</a></blockquote><p>Recovery Attempts in Desperation</p><p>The sale came at a loss when the <a href="https://www.financemagnates.com/terms/b/bankruptcy/" class="terms__secondary-term" id="41b3ef0d-d805-441d-8443-121890264e94">bankruptcy</a> 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.</p><p>Alameda, which was the trading arm of the collapsed FTX empire, also filed a lawsuit against the crypto asset manager, Grayscale for the <a href="https://www.financemagnates.com/cryptocurrency/ftxs-affiliate-sues-grayscale-to-recover-250m-for-customers-and-creditors/" target="_blank" rel="follow">recovery of $250 million</a>, which will be used to compensate FTX’s debtors and creditors.</p><p>Meanwhile, a U.S. court approved the <a href="https://www.financemagnates.com/cryptocurrency/ftx-gains-approval-to-sell-ledgerx-embed-and-europe-japan-entities/" target="_blank" rel="follow">sale of four FTX subsidiaries</a>, 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.</p>
This article was written by Arnab Shome at www.financemagnates.com.
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