Buy back shares and token reservations
The crypto asset (virtual currency) exchange FTX, which went bankrupt in 2022, has agreed to an asset buyback agreement with Mysten Labs, which leads the development of Diem (formerly Libra) L1 blockchain “Sui”.
According to court documents dated 22nd, Mysten Labs will buy back preferred shares and SUI token warrants received by FTX Ventures, an affiliated company of FTX, when investing in Mysten Labs.FTX said it has concluded that this agreement is the best way for the debtor’s assets and creditors at this time.
What is Sui
The L1 blockchain is characterized by high processing power.Mysten Labs was founded by former members of the cryptocurrency project Diem, whose development was led by Meta (formerly Facebook), and Sui and Diem have something in common.Sui has yet to launch a mainnet.
Cryptocurrency Glossary
connection: Aptos, Sui, Linera—Compare Diem (formerly Libra) L1 chains | Part 1
connection: Aptos, Sui, Linera—Compare Diem (formerly Libra) L1 chains | Part 2
Last September, Mysten Labs announced that it had raised a total of $300 million in Series B funding.There were other investors, but FTX Ventures led the fundraising at this time.Court documents explain that FTX Ventures acquired the preferred stock and warrants in August.
connection: Sui blockchain development company raises 43 billion yen from FTX and Dentsu Ventures
In August, FTX-affiliated companies, including FTX Ventures, invested more than $100 million (approximately 13.3 billion yen) in total, acquiring Mysten Labs preferred stock and warrants.The warrant was issued by the Sui Foundation.
This repurchase agreement seems to have been proposed to FTX by Mysten Labs on the 16th of this month.The content of the proposal was that Mysten Labs would buy back the preferred shares and warrants of Mysten Labs acquired by FTX Ventures through the investment for a total of $96 million (about 12.5 billion yen) in cash.
Specifically, $95 million will be allocated to preferred stock and $1 million to warrants.
The execution of this contract requires court approval.In the meantime, FTX will be looking to see if it can get a better deal with a third party.FTX wants to grow its assets as much as possible to pay back its creditors.
Continuing bankruptcy proceedings
After going bankrupt in November last year, FTX is proceeding with bankruptcy proceedings led by new CEO John J.Ray III.Until now, we have continued to secure assets for the purpose of repaying creditors.
On the 6th of this month, FTX’s sister company and investment company Alameda Research announced that it had filed a lawsuit against the cryptocurrency management company Grayscale and related parties.It claims that there was a problem with the operation of the Bitcoin (BTC) and Ethereum (ETH) mutual funds provided by Grayscale.
The debtors of Alameda et al.are asking all purchasers of the mutual funds to pay more than $9 billion (approximately 1.2 trillion yen at the rate at the time).He explained that more than $ 250 million (about 33.9 billion yen) can be used to repay the debt.
connection: FTX Sues Grayscale, Digital Currency Group
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Sui developer Mysten Labs agrees to buy back FTX assets for 12.5 billion yen appeared first on Our Bitcoin News..
