Mysten Labs is looking to purchase back $96M worth of shares it sold to the FTX exchange. The offer by Mysten Labs consists of approximately $95 million in preferred stock, coupled with SUI token warrants worth almost $1 million. These token warrants will act as financial derivatives that allow their holders to purchase tokens at a specified price under certain conditions.
FTX was previously involved in building its stake in Mysten Labs a few months before its sudden collapse. The venture arm of FTX led the series B funding round for Mysten Labs. Furthermore, the funding round played a fundamental role in helping the digital asset industry regain its throne in Q3 of 2022. The industry even managed to establish itself as the leading sector among different emerging technologies for venture capital funding.
FTX Debtors Agree to Sell Stake in Mysten Labs
The offer regarding the reclamation of the FTX’s stake was sent on March 16. The offer itself was considered to be an attractive one as it would allow debtors to recover a significant chunk of the value they initially invested in the exchange. However, FTX initially declined to conduct an auction of its stake in Mysten Labs as it believed that it might get better offers from third-parties.
As per the recent development, the debtors of the defunct FTX exchange have agreed to sell its preferred stock in Mysten Labs. The debtors deeply analyzed the offer and set forth an agreement in comparison to other options. However, the purchase price of the stock is approximately 95% of the amount FTX initially invested in Mysten Labs.
Currently, the deal is subject to court approval and also includes the possibility of getting other offers on the stock before it proceeds to finalization.
The filing said,
“The Debtors carefully considered and analyzed the offer as set forth in the Agreement in comparison to its other options and concluded that a sale of the Interests will result in obtaining maximum value for the Interests, and is in the best interests of the Debtors’ estates and creditors. The Purchase Price is equal to approximately 95% of the amount FTX Ventures had originally invested in the Preferred Stock of Purchaser-Subject Company, plus 100% of the amount Sellers paid for the SUI Token Warrants.”
FTX Finalizes a Deal to Recover $460m From Módulo
The exchange has managed to strike a deal in the recovery of more than $400 million in cash from Módulo Capital. The recovery marks the influx of 97% of the money the exchange handed out to the hedge fund in 2022. Módulo agreed to pay more than $404 million in cash and also agreed to give up its claim to assets worth $56 million in FTX.
Alameda Research also sent a total sum of $475 million to Módulo in a series of transfers that initiated in May 2022. At that time, the exchange was losing money and was well on its way towards bankruptcy. Alameda Research paid $25 million to acquire a stake in Módulo Capital and also contributed $450 million to an investment fund controlled by Módulo Capital. However, the settlement recovered a great percentage of these payments, and acquired a total of 99% of Módulo’s assets.