FTX creditors agree to sell Mysten Labs stock
by LORENZO CIOTTI | VIEW 425
As reported by Reuters, FTX will have to sell its stake in startup Mysten Labs to pay off creditors. FTX's new board of directors continues to seek to raise money to compensate victims of the malpractices of the old management.
The news was reported by the international news agency Reuters, the bankrupt company said it plans to sell its stake in Mysten Labs for $95 million. The stake was acquired for about $101 million last year, when FTX spearheaded a funding consortium that raised the Web3 platform's valuation to more than $2 billion.
FTX was also able to reach an agreement to recover $404 million in cash from Modulo Capital. It is a Bahamas-based company that administers hedge funds. Modulo Capital had received a large portion of the $475 million that Alameda Research, a subsidiary of bankrupt FTX, had sent to this hedge fund.
The transfer took place in a series of transactions last year, when the exchange was already in a liquidity crisis. Modulo has also renounced claims to $56 million of its own assets deposited in FTX, the article reads, adding: "The settlement recovers most of these transactions and seizes 99% of Modulo's remaining assets, according to court documents." We recall that last week FTX asked the US bankruptcy judge to protect its assets from the bankruptcy judges charged with liquidating the Bahamas based, FTX Digital Markets.
During the court hearing, FTX's position was that the liquidators could not claim ownership of the exchange's assets. To justify the argument, lawyers in the US have argued that the Bahamian office was only a cover, to allow founder Sam Bankman-Fried to direct deposits and other securities of FTX Trading clients to the Bahamas, out of the reach of the authorities of supervision and the American courts.
FTX filed for Chapter 11 assisted bankruptcy proceedings in early November of last year. On that occasion he confessed that he was unable to fully reimburse customers. FTX's new CEO, John Ray, later said his top priority was to recover assets to repay customers.