Crypto exchange FTX has entered an agreement to sell its preferred stock in Mysten Labs, the company behind the Sui blockchain.
In a March 22 court filing the FTX debtors proposed selling all of its interests in Mysten Labs which comprises $95 million in preferred stock and $1 million in SUI token warrants.
“The Purchase Price is equal to approximately 95% of the amount FTX Ventures had originally invested in the Preferred Stock of Purchaser-Subject Company, plus 100% of the amount Sellers paid for the SUI Token Warrants,” said the FTX debtors in the filing.
FTX’s investment in Mysten Labs was made when Sam Bankman-Fried’s crypto empire was still standing and its high value venture investments were still in full swing. FTX participated in Mysten Labs’ $300 million Series B funding round in September, which valued the company at over $2 billion.
Mysten is developing the Sui blockchain, a Layer 1 Proof-of-Stake network built on Move and aimed at scaling throughput. Sui’s developer network is live, with the mainnet scheduled to go live in the second quarter of 2022.
FTX’s debtors said that the decision to sell their stake came after careful consideration, with the view that the sale will result in obtaining maximum value for the bankruptcy estate and its creditors.
The news comes a day after FTX announced an agreement to claw back $460 million from Modulo Capital – another venture investment spearheaded by Bankman-Fried last year. The debtors said they had reached an agreement with Modulo’s controlling stakeholders after “constructive negotiations” and managed to recover 99% of the firm’s assets.