The latest developments in the FTX bankruptcy case come as the collapsed cryptocurrency exchange reached a new agreement with a company owned by the Abu Dhabi government.
Alameda Research, the investment arm of FTX, will sell its remaining interest in venture capital firm Sequoia Capital to the Abu Dhabi sovereign wealth fund, according to a March 8 court filing in Delaware Bankruptcy Court.
According to the filing, FTX “decided to enter into an agreement with the buyer based on its superior offer and ability to execute the sale transaction within a short period of time.” This came after there were interests in purchasing shares from four different parties. The buyer of the Alameda stake, Al Nawwar Investments RSC Limited, is owned by the government of Abu Dhabi, the capital of the United Arab Emirates. The document noted that the buyer had already invested in Sequoia Capital.
The $45 million deal is likely to close by March 31. However, it needs approval from Delaware bankruptcy judge John Dorsey. The attempt to sell its remaining interest in Sequoia is part of FTX's attempt to liquidate its investments to pay creditors.
Dorsey has been involved in all aspects of the legal case against FTX. After the initial bankruptcy filing, Dorsey granted the former exchange permission to sell some of its assets. These assets include derivatives platform LedgerX, equity clearing platform Embed, and the firm's regional affiliates FTX Japan and FTX Europe.
In January 2023, FTX reportedly recovered more than $5 billion in cash and liquid crypto assets. In a related case, on March 8, Dorsey approved Voyager Digital to set aside $445 million after Alameda Research sued the company for repaying loans, according to court documents.
