September 27, 2023

Mysten Labs to Buy FTX Shares and Warrants for SUI Tokens for $96M

Article reading time:
1 min.

Mysten Labs to Buy FTX Shares and Warrants for SUI Tokens for $96M

Startup Mysten Labs, which developed the Sui blockchain, will be able to buy back its shares and warrants for SUI tokens from the collapsing cryptocurrency exchange FTX.

The FTX interim administration proposed a dealwhich Mysten Labs and the company would agree to a mutual indemnity. As part of the agreement, FTX will sell about $95 million worth of shares to Mysten in addition to $1 million worth of SUI tokens. The deal is likely to be approved by the court.

“The purchase price is approximately 95% of the amount that FTX Ventures originally invested in the shares of the acquiring company,” the court documents say.

FTX Ventures acquired the shares in a funding round that Mysten announced in September 2022. The investment was made before FTX filed for bankruptcy in November.

FTX previously reached an agreement to recover more than$400 million from Bahamas-based hedge fund Modulo Capital. Modulo agreed to pay $404 million and waive claims for $56 million in assets held on FTX. Thus, the exchange received 97% of the assets that firms sent to the hedge fund for 2022.