Alameda Research, FTX’s sister company, agreed to sell Abu Dhabi’s sovereign wealth fund its stake in Sequoia Capital for $45 million.
The most recent development in the FTX bankruptcy case comes as a new agreement has been reached between the now-defunct cryptocurrency exchange and a business owned by the Abu Dhabi government.
According to a court filing filed on March 8 with the United States Bankruptcy Court for the District of Delaware, Alameda Research, the investing division of FTX, will sell the Abu Dhabi sovereign wealth fund its remaining stake in the venture capital firm Sequoia Capital.
The agreement was settled upon by FTX “based on its superior offer and ability to execute the Sale Transaction within a short time frame,” the document said.
This comes after four different parties expressed interest in buying the shares. The government of Abu Dhabi, the capital of the United Arab Emirates, owns Al Nawwar Investments RSC Ltd, the company that purchased Alameda’s portion.
According to the contract, the buyer has already made an investment in Sequoia. The $45 million transaction could be completed by March 31. John Dorsey, the Delaware bankruptcy judge, must nonetheless approve it.
As part of its efforts to liquidate its holdings in order to settle its debt to creditors, FTX is attempting to sell off its remaining stake in Sequoia Capital.
Dorsey has taken part in some of the legal disputes involving FTX. Dorsey authorized the former exchange to sell some of its assets following its initial bankruptcy filing.
These assets included the company’s regional branches, FTX Japan and FTX Europe, as well as the stock-clearing platform Embed and the derivatives platform LedgerX.
According to a report from January 2023, FTX was able to recover almost $5 billion in cash and liquid crypto assets. On a separate matter, court records show that on March 8 Dorsey gave his approval for Voyager Digital to set aside $445 million after Alameda Research sued the business over loan repayments.
