Mysten Labs Inc., a crypto startup established by former Meta executives, agreed to buy back its preferred shares from bankrupt crypto platform FTX for $95M.
FTX's venture capital division, FTX Ventures, initially paid $101M for the stake when it led Mysten's $300M Series B round in September 2022 at a valuation of $2B.
The proposed deal will need the approval of the bankruptcy court.
- Since the deal is yet to be approved, the bankruptcy court may welcome higher bids for the stakes.
- As part of the transaction, FTX and Mysten have agreed to drop claims against each other.
Last week, FTX was able to claw back $404M of its investment into hedge fund and venture firm Modulo Capital.
- In return, Modulo agreed to waive $56M worth of claims against FTX.
