FTX Strikes a Deal with Abu Dhabi
The latest twist in the FTX bankruptcy saga involves a deal stitched together between the once-dominant cryptocurrency exchange and a luxurious investment company owned by the government of Abu Dhabi. Think of it as a high-stakes poker game, but instead of chips, they’ve got millions on the table.
The Sequoia Cash-Out
As revealed in a court document from the United States Bankruptcy Court for the District of Delaware dated March 8, Alameda Research, the investment side of FTX, is set to sell its remaining interest in the famous venture capital firm, Sequoia Capital. And guess who’s gobbling it up? Al Nawwar Investments RSC Limited, Abu Dhabi’s sovereign wealth fund. These guys are already in bed with Sequoia, making this a marriage of convenience.
A Sweet $45 Million Deal
This transaction is no petty cash exchange; it’s worth a whopping $45 million. Closing the deal by March 31 would be the cherry on top, but of course, it’s still subject to a nod from Delaware bankruptcy judge John Dorsey—because, you know, nothing says ‘solid contract’ quite like a judge’s signature.
Why the Rush?
So, what’s driving FTX to liquidate its investments? Well, it turns out they’re eager to shake off some debt and pay back their creditors. After all, no one likes being the last one to leave a party, especially when they owe everyone a round.
Dorsey’s Involvement
Judge Dorsey hasn’t been merely a spectator in this drama. After FTX threw in the towel and filed for bankruptcy, Dorsey has been actively letting them offload some assets. We’re talking about selling off pieces of their pie, including the derivatives platform LedgerX and branches in Japan and Europe—basically, it’s a clear-out sale!
Recovery Over $5 Billion
In January 2023, amid all this chaos, FTX reportedly managed to recover over $5 billion in cash and liquid crypto assets. It’s like finding a $20 bill in the pocket of a jacket you haven’t worn since last winter.
Voyager Digital’s Complications
And if you thought FTX was the only party having a tough time, think again. Also on March 8, the court revealed that Dorsey has agreed to let Voyager Digital squirrel away $445 million after Alameda Research came knocking, demanding loan repayments. It seems like everyone’s got debts to settle in this wild financial dance!
