Abu Dhabi’s investment arm agrees to buy FTX’s stake in Sequoia for $45 million

Al Nawwar Investments RSC Limited has agreed to buy FTX’s stake in Sequoia Capital, from Alameda Research, the investment arm of FTX, for $45 million in cash, CoinDesk reported, citing court documents filed on March 8.

The cash transaction, which will be subject to approval by the bankruptcy judge, is part of FTX’s attempt to pay off creditors by selling assets to raise funds.

According to the documents, the bankrupt cryptocurrency exchange gave eight potential buyers access to numerous information about its interests, after entering into non-disclosure agreements with them; On February 20, FTX received indications of interest from four parties, including Al Nawar, and entered into negotiations with two parties to sell its assets of the Sequoia Capital fund.

Moreover, the deal, which is awaiting approval by US Bankruptcy Judge John Dorsey, could be completed on March 31, once all conditions are met. However, the report indicated that deals made by bankrupt companies are subject to judicial review.

As a subsidiary of the Abu Dhabi Investment Council, Al Nawar is ultimately owned by Mubadala Investment Company, an Emirati state-owned holding company that operates as a sovereign wealth fund. The document noted that the company is already an existing investor in Sequoia, and has a “long history in investment funds” managed by the venture capital firm’s general partner.

Related: Former FTX manager ‘likely to go to jail’ to pay the price according to Anthony Scaramucci

Notably, Sam Bankman-Fried’s FTX subsidiary filed for bankruptcy in November, and Dorsey allowed some easily separable assets belonging to the cryptocurrency exchange to be offered for sale in January. These assets include derivatives arm LedgerX, stock clearing platform Embed, and others. of Japanese and European units.

However, FTX management stated that there was still a huge deficit on the balance sheet, and it would be difficult to locate the funds due to the company’s poor record-keeping.

On the other hand, Bankman-Fried attorneys noted that the trial of the former CEO had been delayed in October, in a letter dated March 8 to US District Judge Louis Kaplan. Christian Everdel, one of the attorneys, wrote:

“Depending on the volume and timing of the newly discovered facts, it may be necessary to request an adjournment of the trial, which is scheduled to begin on October 2, 2023.”

Everdale added: “Although we would not be making such an application at this time, we wanted to bring this matter to the Court’s attention at this time.”

Currently, Bankman-Fried is released on $250 million bail, but is under house arrest at his parents’ home in Palo Alto, California, and his online activities are restricted.

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