FTX Exchange Sells Interest in Sequoia Capital for $45M
• The FTX exchange and its sister company Alameda Research recently sold their interest in Sequoia Capital to N Abu Dhabi sovereign wealth fund for $45 million.
• This deal was approved by US Bankruptcy Court for the District of Delaware judge John Dorsey.
• This is part of FTX’s attempts to raise enough funds to pay creditors after its bankruptcy filing.
FTX Exchange Sells Interest In Sequoia Capital
The saga of the FTX exchange, its sister company Alameda Research, and former CEO Sam Bankman-Fried continues following the bankruptcy proceedings. A recent court document revealed that Alameda Research has agreed to sell its interest in Sequoia Capital to N Abu Dhabi sovereign wealth fund for $45 million. The sale was approved by US Bankruptcy Court for the District of Delaware judge John Dorsey.
Reasons Behind Sale Agreement
The agreement was made due to the speed at which the Purchaser – Al Nawwar Investments RSC, a company under Abu Dhabi government – would execute the Sale Transaction. Moreover, it had offered a superior amount compared to four other prospective buyers, making it more appealing.
Assets Sold After Bankruptcy Filing
Dorsey had previously signed off on some assets owned by FTX including those of LedgerX, Embed, FTX Europe and FTX Japan after filing for bankruptcy. According to Reuters, SBF and some employees used a weekend before filing for bankruptcy in November 2020 to transfer some liquid crypto assets and cash from FTX worth over $5 billion.
Agreement To Sell Sequoia Interest
Alameda Research’s recent agreement with Abu Dhabi government is an attempt by FTX to raise enough funds to pay creditors after Binance stopped processes for buying the exchange in November 2022. On March 8th 2021, Dorsey also approved a claim worth $445 million made by Alameda Research on Voyager Digital regarding loan repayments.
In conclusion , selling its interest in Sequoia is one of many attempts that have been made by FTX and its related parties since it filed for bankruptcy last year as they look towards paying off their creditors soon .