FTX Reaches $45M Deal to Sell Interest in Sequoia
- FTX’s investment arm, Alameda Research, has struck a $45 million cash deal to sell its interest in Sequoia Capital to the Abu Dhabi sovereign wealth fund.
- The agreement requires approval from a Delaware bankruptcy court as the failed exchange seeks to raise funds for creditors.
- The would-be buyer, Al Nawwar Investments RSC Limited, is ultimately owned by the government of Abu Dhabi and already invests in Sequoia.
Background on FTX Bankruptcy
FTX group filed for bankruptcy protection in November 2020. In January 2021, Judge John Dorsey granted permission for some of FTX’s more easily separable assets – including derivatives arm LedgerX, stock-clearing platform Embed, and Japanese and European units – to be offered for sale. However, poor record keeping at the company had left a large balance sheet shortfall.
Agreement with Purchaser Details
Following indications of interest from four parties and negotiations with two potential buyers, FTX decided to enter into an agreement with a purchaser based on their superior offer and ability to execute the sale transaction quickly. The agreement is subject to approval by Delaware bankruptcy court Judge John Dorsey and could be closed as soon as March 31.