FTX Debtors to Sell Its Stake in Web3 Firm Mysten Labs

FTX debtors have agreed to sell their stake in Mysten Labs.

FTX debtors have entered an agreement with Mysten Labs, the firm behind Sui blockchain, to sell its equity in the Web3 company. The $95 million sale is part of FTX debtors’ continued effort to recover funds and settle owed debt.

In addition to the equity buyback, Mysten Labs will release $1 million worth of SUI tokens to the bankrupt firm. The debtors filed a motion at the United States Bankruptcy Court in Delaware on March 22nd.

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FTX Ventures injected $100 million into Mysten Labs in September 2022, a few weeks before the crypto exchange filed for bankruptcy. According to CNBC, FTX diverted $200 million of users’ funds to invest in Mysten Labs and other ventures. The agreed sale of a stake in the Web3 firm will help FTX debtors recoup approximately 95% of the invested amount.

The filing highlighted that it was “in the best interests of the Debtors’ estates and creditors” to proceed with the sale as it would offer them the maximum value. The deal may require approval from the court and other bids before going through.

In related news, FTX announced it would claw back the $460 million it invested in VC firm Modulo Capital. The investment was allegedly funded by misappropriated user funds via FTX’s trading firm, Alameda Research. Modulo Capital has agreed to repay $404 million and relinquish assets worth $56 million held on FTX.

On top of that, new leaked messages revealed that prior to FTX’s collapse, Sam Bankman-Fried made bold attempts to get the defunct crypto exchange licensed by the United States.

Gile K. - Crypto Analyst

by Gile K. – Crypto Analyst, BitDegree

Source: https://www.bitdegree.org/crypto/news/defunct-crypto-exchange-ftx-debtors-to-sell-mysten-labs-equity-for-95m
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