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

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

FTX's interim administration has proposed a deal in which Mysten Labs and the company would agree to a mutual exemption fromAs part of the agreement, FTX will sell approximately $95 million worth of shares to Mysten in addition to $1 million worth of SUI tokens.Most likely, the deal will be approved by the court. 

"The purchase price represents approximately 95% of the amount that FTX Ventures initially invested in the acquirer's shares," the court documents said.

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

Previously, FTX reached an agreement to collectmore 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 at FTX. Thus, the exchange received  97% of assets that firms sent to a hedge fund in 2022.