Debtors of defunct crypto exchange FTX have approved a deal that would sell their preferred shares in Mysten Labs, the company behind the Sui blockchain.
In a March 22 filing in the United States Bankruptcy Court for the District of Delaware, FTX's debtors proposed a settlement in which Mysten Labs and the company would agree to a mutual release of claims. As part of the deal, the debtors planned to sell approximately $95 million in preferred shares to Mysten, in addition to $1 million in SUI tokens.
โThe Debtors have carefully considered and analyzed the offer as set forth in the Agreement in comparison to 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 interest of the assets of the Debtors. and creditors,โ the filing said. "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 the SUI token certificates" .
The deal is apparently subject to court approval, as well as the possibility of other offers for the shares before it is finalized. FTX Companies acquired the shares as part of a $300 million funding round with Mysten announced in September 2022. The investment also came before FTX filed for Chapter 11 bankruptcy in November.
Debtors in the FTX bankruptcy case also announced on March 22 that planned to recover $460 million of user funds from venture capital firm Modulo Capital. The filing alleged that Alameda Research's investment was under the direction of former FTX CEO Sam Bankman-Fried and a misappropriation of funds. Bankman-Fried faces multiple charges in federal court related to alleged fraud during his time as chief executive and has pleaded not guilty to all charges.
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