Mysten Labs, the team behind the Sui blockchain, has agreed to purchase FTX’s equity investment in Mysten Labs and sui token warrants for $96.3 million in cash. This buyback agreement is part of the ongoing efforts of FTX CEO John J. Ray III to maximize what creditors recover from Sam Bankman-Fried’s collapsed crypto exchange. The liquidation of FTX Ventures portfolio includes several crown jewels and this agreement is a step towards achieving that goal.
Mysten Labs, a company yet to release its SUI token, has offered to repurchase assets from the FTX bankruptcy estate. The estate retained investment bank Perella Weinberg Partners (PWP) to solicit interest from other potential buyers before entering into a deal with Mysten. On March 16, Mysten Labs made an offer letter to the FTX estate, which was accepted. The offer letter is a major step forward for Mysten Labs and its highly anticipated SUI token. It is expected that the repurchase of assets from the FTX estate will help Mysten Labs to move closer to the launch of its SUI token.
FTX Ventures, a venture capital firm, recently filed for bankruptcy after leading Mysten Labs’ $2 billion Series B fundraise in August. As part of the deal, FTX entities paid $101 million for equity and an additional $1 million for token warrants. Now, the FTX Bankruptcy Estate is attempting to claw back $460 million from Modulo Capital, a firm that was involved in the Mysten Labs fundraise. The FTX Bankruptcy Estate is alleging that Modulo Capital received a $460 million payment from Mysten Labs, which was not disclosed to FTX Ventures. The case is ongoing and the outcome is yet to be determined.
FTX, a bankrupt company, has chosen Mysten Labs, Inc. as the potential buyer of its assets. FTX has been working with PWP, a financial advisory firm, to evaluate the alternatives and determine the best course of action. The court will now work to finalize the sale date, but FTX will continue to market the assets and solicit higher or better offers from any third party until the sale date is finalized. Mysten Labs has yet to comment on the potential acquisition.
