Liquidators have requested the judge overseeing crypto exchange FTX's bankruptcy proceedings to approve the sale of its commitments to Sequoia Capital Fund to other investors.
Abu Dhabi-state-backed Al Nawwar Investments RSC Limited is reportedly planning to scoop up the stake for $45M.
- Al Nawwar is already a limited partner in the Sequoia Capital Fund, and the move will give it a larger share in the fund.
- Three other parties were in contention for the stake in February 2023.
- Initially,
FTX's affiliate Alameda Research's venture division had made
commitments to the fund, which were then taken up by the now-defunct
crypto exchange.
- The firm committed to invest $100M into the fund, of which it has already deployed nearly $50M.
- Liquidators thought it would be best to sell the stake right now as hanging onto it would result in higher management fees.
