• FTX has agreed to sell its stake in Mysten Labs for $95 million in order to pay back its customers.
• The company also reached a deal to recover $400 million in cash from Modulo Capital.
• FTX has asked a US bankruptcy judge to protect its property from the liquidators in charge of winding down its Bahamas unit, FTX Digital Markets.
FTX Bankruptcy Update
The crypto exchange FTX is reportedly selling its stake in Web3-focused startup Mysten Labs for $95 million in an effort to pay back its customers after filing for bankruptcy protection last year. The company’s new management is continuing its mission to collect money to return to the victims of the old management’s practices.
Deal with Modulo Capital
FTX also managed to reach a deal this week to recover $400 million in cash from the Bahamas-based Modulo Capital, according court documents. Modulo also gave up its claim to $56 million in assets held on FTX, said the report, adding that it recovers most of those payments and takes 99% of Modulo’s remaining assets.
Protection From Liquidators
FTX has asked a US bankruptcy judge to protect its property from the liquidators in charge of winding down its Bahamas unit, FTX Digital Markets. It argued that the Bahamian affiliate was a „corporate shell“ and the „centerpiece“ of founder Sam Bankman-Fried’s effort „to funnel FTX Trading customer deposits and other valuable property and rights to the Bahamas, out of the reach of American regulators and courts.“
Asset Recovery & Legal Developments
Since filing for bankruptcy protection last year, FTX has recovered over $5 billion in cash and liquid assets that could be used to repay creditors as well as a large amount of illiquid cryptoassets and other nonstrategic investments worth book value at $4.6 billion. In addition, Bankman-Fried was arrested, extradited to the US, released on bond after pleading not guilty criminal charges including bank fraud and conspiracy by misusing customer funds.
FTX continues making progress towards repaying customers affected by past mismanagement through asset recovery efforts as well as legal developments such as deals with Modulo Capital or protecting their property from liquidators attempting take advantage of them