FTX’s Alameda Research Agrees to Sell Interest in Sequoia Capital

• FTX’s sister company, Alameda Research, agreed to sell its interest in Sequoia Capital to Abu Dhabi’s sovereign wealth fund for $45 million.
• The buyer of Alameda’s share is owned by the government of Abu Dhabi and is already invested in Sequoia.
• The court document states that FTX chose the superior offer from Abu Dhabi and the sale could be completed by March 31.

Background on FTX Bankruptcy Case

In December 2020, FTX filed for bankruptcy with the United States Bankruptcy Court for the District of Delaware. Since then, Judge John Dorsey has been involved in various aspects of the legal cases concerning FTX. Initially, he granted permission to sell some of its assets which included derivatives platform LedgerX, stock-clearing platform Embed and regional branches such as FTX Japan and FTX Europe. In January 2023, it was reported that FTX recovered over $5 billion in cash and liquid crypto assets.

New Deal with Abu Dhabi Sovereign Wealth Fund

A new development occurred when a court document revealed that Alameda Research would sell its remaining interest in venture capital firm Sequoia Capital to the Abu Dhabi sovereign wealth fund. The deal is worth $45 million and could be closed by March 31 subject to approval from Judge Dorsey. This sale comes as part of an attempt by FTX to liquidate its investments to pay off debt owed to creditors.

Alameda Research Sues Voyager Digital

In another related case, a court document revealed that Dorsey approved an agreement between Voyager Digital and Alameda Research. According to this agreement, Voyager Digital will set aside $445 million after Alameda sued them over loan repayments.

Conclusion

It appears that FTX is attempting to recover from its bankruptcy filing through liquidation of their investments while also repaying creditors what they are owed. The latest update involves a deal between Alameda Research and Abu Dhabi’s sovereign wealth fund regarding shares held in venture capital firm Sequoia Capital — worth $45 million. If approved by Judge Dorsey this sale could be completed by March 31st 2021; however other related cases involving loan repayment agreements are also ongoing within the US Bankruptcy Court for the District of Delaware.