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

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.

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.


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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jack Schickler is 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.