Fintech firm Dave has reached an agreement to purchase a $100-million convertible promissory note from FTX Ventures, the venture capital arm of bankrupt crypto exchange FTX. The note will be bought at a discounted price of $71 million, pending approval from a bankruptcy court.
Dave, a mobile application that offers financial services such as savings accounts and cash advances, previously partnered with FTX in March 2022 to provide cryptocurrency payments on its platform. The partnership also included a $100-million investment from FTX Ventures.
FTX, which filed for bankruptcy in November 2022, has been reclaiming investments, payments, and donations made by its subsidiaries. The company’s debtors recently announced a global settlement with the Joint Official Liquidators for its Bahamian arm as part of the bankruptcy proceedings.
The court has granted approval for several sales to liquidate FTX’s assets and repay creditors. These include the divestment of LedgerX, the sale of trust assets valued at $873 million, and the liquidation of digital assets worth $3.4 billion. So far, at least $7 billion in assets have been recovered out of the roughly $8.7 billion in misappropriated customer funds.
FTX founder Sam Bankman-Fried has been found guilty of multiple charges, including wire fraud, securities fraud, and money laundering conspiracy. His sentencing is scheduled for March 28, 2024.
Overall, Dave’s agreement to purchase the convertible promissory note from FTX Ventures is a significant development in the ongoing bankruptcy proceedings of FTX. It remains to be seen how this acquisition will impact both companies and their respective stakeholders.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | 🇧🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Sam Bankman-Fried |
| Companies | FTX Ventures, Joint Official Liquidators, Genesis, LedgerX, Dave |
| Currencies | US Dollar |
| Securities | None |
