The saga of the FTX exchange, its sister company Alameda Research, and former CEO Sam Bankman-Fried continue following the bankruptcy proceedings. So far, There have been many discoveries, rejected pleas, and sales of assets by these parties.
The latest development is selling Alameda Research’s interest in Sequoia Capital to N Abu Dhabi sovereign wealth fund. A recent court document by the US Bankruptcy Court for the District of Delaware revealed the agreement between the parties.
Essential Details Of Alameda Research Deal
One of the reasons for agreeing to the sale was the speed at which the Purchaser would execute the Sale Transaction. Also, Al Nawwar Investments RSC’s offer was superior to the four other prospective buyers, making it the best option for Alameda Research.
Notably, the Purchaser Al Nawwar Investments RSC is a company under the Abu Dhabi government and already owns some shares of Sequoia. Its deal with Alameda Research is worth $45 million and might be close by the end of March if the Delaware bankruptcy judge John Dorsey approves it.
The judge had always participated in the FTX legal proceedings and even allowed it to sell some of the assets it owned after the bankruptcy filing. Some of the assets Dorsey signed off on were the assets of LedgerX, Embed, FTX Europe, and FTX Japan.
After the sale of these assets, FTX could recover more than $5 billion in liquid crypto assets and cash. Also, on March 8, the judge approved a $445 million claim by Alameda Research on Voyager Digital regarding loan repayments.
Alameda Research’s recent agreement to sell its Sequoia interest to the Abu Dhabi government is another attempt by FTX to raise enough funds to pay its creditors.
Recent Developments On FTX Bankruptcy Case
Before now, FTX founder SBF had made notable attempts to raise cash after Binance stopped processes to buy the exchange. On November 15, 2022, Reuters reported that SBF and some employees of FTX used a weekend to call investors seeking to raise funds.
After his bail worth $250 million, SBF blamed many people for his failed attempts to save FTX. A blog post on Coinmarketcap revealed that the former CEO blamed the extended bearish market of 2022 as one of the causes of FTX’s collapse.
The latest developments in the case show that the professionals working on the FTX bankruptcy have billed $38 million for January 2023. The court filings revealed that the three firms assigned to the case, Sullivan & Cromwell, Landis Rath & Cobb, and Quinn Emanuel Urquhart & Sullivan, billed $16.8 million, $663,995, and $1.4 million, respectively.
Notably, these firms work with 180 lawyers and more than 50 non-lawyers comprising paralegals and others.
Featured Image from IStock and chart from Tradingview.com