Lawyers Get Access To $95 Million After Selling Assets

FTX News: The defunct crypto exchange FTX has officially stated that it has achieved an agreement to sell preferred shares in Mysten Labs Inc. back to the crypto company that was created by former Meta executives for about $95 million. As the lead investor in a financing round last year that valued Mysten at over $2 billion, FTX Ventures —  the VC arm of the defunct crypto empire — purchased Series B preferred shares.

FTX Sells Mysten Shares

A court filing confirmed that as part of the settlement, FTX and Mysten waived all claims they had against one another. In a funding round that raised around $300 million in August, FTX Ventures bought Mysten’s preferred shares for close to $101 million.

Read More: Arbitrum’s (ARB) Price Plummets By 90% From IOU Value Amid Mass Sell-Off

Since the cryptocurrency company FTX filed for bankruptcy in November, its creditors are engaged in a heated battle over the assets held by FTX and its affiliated companies. Sam Bankman-Fried, who was one of the company’s co-founders, made consistent investments in a wide variety of asset classes through his company, FTX. These asset classes included private and public enterprises, investment funds, and token platforms.

FTX Lawyers In Recovery Mode

Headed by John J. Ray III, the new management team that is guiding FTX through bankruptcy announced on Wednesday that it has struck a settlement to recoup $400 million and above from Modulo Capital — a trading firm domiciled in the Bahamas and financed by Alameda Research.  According to the court documents that were submitted a day back, Alameda had invested $450 million in Modulo last year.

Sam Bankman-Fried, the erstwhile CEO of FTX is accused by federal prosecutors of stealing billions of dollars worth of customer funds and of misleading investors and institutions. He has entered a not-guilty plea to accusations relating to violations of campaign funding laws, and conducting fraudulent operations in the securities & commodities markets, among other allegations.

Also Read: SEC Issues New Set Of Cautions For Investors In Crypto Asset Securities

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now – he has seen it all.

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