FTX Reaches $45M Deal to Sell Interest in Sequoia to Abu Dhabi's Investment Arm

The agreement requires approval from a Delaware bankruptcy court as the failed exchange seeks to raise funds for creditors.

AccessTimeIconMar 9, 2023 at 9:10 a.m. UTC
Updated May 9, 2023 at 4:10 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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, according to court documents filed Wednesday.

The deal, subject to approval by Delaware bankruptcy court Judge John Dorsey, is part of the bankrupt company's attempts to sell its investments in early stage crypto and tech ventures in a bid to repay creditors.

  • Inside Saga's 'Power-Level Over 9000' Campaign
    00:43
    Inside Saga's 'Power-Level Over 9000' Campaign
  • Saga CEO on Chainlets Feature
    19:20
    Saga CEO on Chainlets Feature
  • DOJ Wants CZ to Serve 3 Years in Prison; Tether to Freeze Wallets Evading Venezuelan Sanctions
    02:26
    DOJ Wants CZ to Serve 3 Years in Prison; Tether to Freeze Wallets Evading Venezuelan Sanctions
  • What's Driving HBAR's Roller-Coaster Ride?
    01:12
    What's Driving HBAR's Roller-Coaster Ride?
  • FTX “decided to enter into the Agreement with Purchaser based on its superior offer and ability to execute the Sale Transaction within a short time frame,” after receiving indications of interest from four parties and entering into negotiations with two for the sale of assets in the Sequoia Capital Fund, the document said.

    The agreement could be closed as soon as March 31, though deals made by bankrupt companies are subject to close judicial scrutiny. The would-be buyer, Al Nawwar Investments RSC Limited, is ultimately owned by the government of Abu Dhabi, and already invests in Sequoia, the document said.

    FTX group filed for bankruptcy protection in November, and Dorsey granted permission in January for some of FTX’s more easily separable assets to be offered for sale. Those included derivative arm LedgerX, stock-clearing platform Embed, and Japanese and European units. FTX management have said there’s still a massive balance-sheet shortfall, not helped by poor record keeping at the company.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jack Schickler

    Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.