FTX to Resell $96.3 Million Stake in Mysten Labs as Part of Bankruptcy Process
Delaware bankruptcy court has approved an agreement to resell FTX’s $96.3 million stake in Mysten Labs and the right to sell Sui tokens to Mysten Labs, according to a report by The Block. The sale was part of the FTX bankruptcy process, and Mistin Labs co-founder and CEO Evan Cheng said the buyback demonstrates their confidence in their capabilities, technology, and partners.
Mysten Labs is a Layer 1 blockchain Sui developer that attracted $300 million Series B investment at a valuation of $2 billion in August 2022. At that time, FTX Ventures led the investment, with a16z, Jump Crypto, and Binance Labs, among others, participating as investors. FTX Ventures invested $101 million in Misten Labs and acquired approximately 570,000 shares of preferred stock and subscription rights for about 890 million SUI tokens in Misten Labs.
The FTX bankruptcy liquidation team and Mysten Labs agreed on the sale and purchase plan on March 22, and they applied for approval to the bankruptcy court. Mysten Labs proposed a redemption to the FTX bankruptcy settlement team on March 16.
The approval of the sale by the Delaware bankruptcy court is a significant development for both FTX and Mysten Labs. For FTX, the sale will help them recoup some of their losses from their investment in Mysten Labs, while for Mysten Labs, it is an opportunity to increase its ownership in the company.
- FTX Trading To Receive All Of Ren Protocol’s Pegged Assets
- OKX, Bybit, And Kucoin Announce The Listing Of Sui Token Through A Subscription Mechanism