Tag: FTX

FTX Debtors Agree to $95M Stake Sale in Mysten Labs to Shore Up Funds

As part of the agreement, debtors will sell roughly $95 million worth of preferred stock back to Mysten Labs in addition to $1 million in SUI tokens. On Thursday, March 23, debtors of the collapsed crypto exchange FTX filed a motion in the bankruptcy court seeking a $95 million stake in the Delaware-based Web3 firm Mysten Labs. Crypto exchange FTX has been surviving to pay its customers impacted by the collapse of the exchange last year in November 2022. Before it fall, FTX had paid $101 million last year for the…

FTX debtors agree to $95M sale of stake in Mysten Labs

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The debtors for defunct crypto exchange FTX have approved an agreement that would sell its preferred stock in Mysten Labs, the company behind the Sui blockchain. In a March 22 filing in United States Bankruptcy Court in the District of Delaware, FTX debtors proposed a deal in which Mysten Labs and the company would agree to a mutual release of claims. As part of the agreement, the debtors planned to sell roughly $95 million worth of preferred stock back to Mysten in addition to $1 million in SUI tokens. “The…

Dreams of Rebooting FTX Face Cold Reality That Its Technology Wasn’t Well-Regarded

The collateral feature allowed users to hold assets such as bitcoin, ether, stablecoins or even lower-market capitalization altcoins, and trade derivatives – effectively allowing traders to hold a diverse portfolio while being able to trade perpetual swap contracts that can be used to hedge or increase exposure. And while this feature was lauded by users, it was ultimately unsustainable. If FTX comes back without such features, the bugs and sluggish software could matter more. Source

FTX Moves to Recoup $460 Million from Modulo Capital

Modulo’s $460 million marks a significant recovery in the ongoing bankruptcy case. Bankrupt crypto exchange FTX is currently working toward recovering some of the customer funds that were reportedly misappropriated. To this end, it filed a motion on Wednesday that would see it recover $460 million in assets for stakeholders. Per the filing, the fund is being recovered from Bahamas-based hedge fund Modulo Capital, which received no less than $475 million from Alameda Research – the investment arm of FTX, throughout 2022. According to earlier reports, the Modulo Capital investment…

FTX seeks to claw back $460M from Bankman-Fried-backed VC firm

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Bankrupt crypto exchange FTX is seeking to recover $460 million of allegedly misappropriated customer funds from venture capital (VC) firm Modulo Capital, which received a sizeable investment from Alameda Research last year. As previously reported, FTX’s sister trading firm, Alameda Research was understood to have invested around $400 million in Modulo in 2022 — one of the biggest investments undertaken by FTX under Bankman-Fried’s leadership. In a March 22 filing, FTX claim the investment from Alameda Research was under the direction of Sam Bankman-Fried, with Alameda investing $475 million in…

FTX debtors file lawsuit against exchange’s Bahamian arm on ownership of property

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The legal teams representing Alameda Research, FTX US, and FTX Trading have filed a complaint against the Bahamas-based FTX Digital Markets, claiming the company was a “fraudulent enterprise” used as a shell entity to obfuscate the question of the firm’s ownership. In a March 19 filing with the United States Bankruptcy Court for the District of Delaware, FTX debtors said FTX Digital Markets, or FTX DM, as well as the joint provisional liquidators (JPLs) had claimed the Bahamian arm was the “constructive owner” of FTX.com’s fiat and crypto assets as…

SBF shilled FTX risk model to FDIC chairman Gruenberg prior collapse

Before crypto exchange FTX and its founder Sam Bankman-Fried (SBF) got tied down around allegations of misappropriation of users’ funds, SBF was among the most influential crypto entrepreneurs. Long before FTX collapsed, an allegedly leaked email exchange with a top regulator shows SBF’s intent to get the exchange federally regulated. On May 28, 2022, nearly six months before FTX filed for bankruptcy and SBF resigned as the CEO, Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg received an invitation to meet SBF on June 13, 2022, Washington Examiner reported. The…

SBF shilled FTX risk model to FDIC chairman Gruenberg prior to collapse

boss

Before crypto exchange FTX and its founder Sam Bankman-Fried (SBF) got tied down with allegations of misappropriation of users’ funds, SBF was among the most influential crypto entrepreneurs. Before FTX collapsed, a leaked email exchange with a top regulator allegedly showed SBF’s intent to get the exchange federally regulated. On May 28, 2022, nearly six months before FTX filed for bankruptcy and SBF resigned as the CEO, Federal Deposit Insurance Corporation (FDIC) chairman Martin Gruenberg received an invitation to meet SBF on June 13, 2022, the Washington Examiner reported. The…