FTX Hits Pay Dirt After Gaining Access To Millions; Investors Expect To Get Money Back Soon

FTX has announced that it officially signed a deal to sell its preferred shares at Mysten Labs. This move could mean that the now-bankrupt cryptocurrency exchange platform, which was founded by fallen crypto mogul Sam Bankman-Fried, is already a step closer to its vision of returning its investors' funds.

FTX debtors, in a proposal filed in the United States Bankruptcy Court in the District of Delaware on Wednesday, suggested a mutual release of claims of the Web 3-focused startup Mysten Labs and FTX.

The debtors proposed to sell approximately $95 million in preferred stocks back to Mysten Labs along with $1 million in SUI tokens.

"The Debtors carefully considered and analyzed the offer as set forth in the Agreement in comparison to its other options and concluded that a sale of the Interests will result in obtaining maximum value for the Interests, and is in the best interests of the Debtors' estates and creditors," the court filing indicated.

"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," it added.

FTX acquired the stock during the $300 million funding round with the Web 3-focused startup in September 2022, a couple of months before FTX and more than 100 of its affiliates filed for Chapter 11 bankruptcy protection on Nov. 11.

While the deal was already agreed upon by both parties, it is still subject to the approval of the bankruptcy court and could be hindered if others would submit bids on the stock before it is finalized.

FTX debtors also reached an agreement with hedge fund Modulo Capital on Wednesday after it filed a motion to recover $460 million in assets, which includes $404 million in cash.

As per the court filing, the agreement also includes Modulo Capital relinquishing any claims to the $56 million in assets held in FTX and FTX US accounts.

The move is believed to be a wise decision on the part of Modulo Capital, so both parties could avoid the long and arduous process of pursuing claims through litigation.

The series of successes achieved by FTX debtors this week only underlined the executives' ability to recoup funds of the now-bankrupt crypto firm.

Aside from the $460 million from Modulo Capital and the $96 million from Mysten Labs, the team has seized around $700 million from Bankman-Fried.

FTX investors, most of whom lost their life savings on the platform, are hopeful that the debtors could return their funds soon.