The Delaware Bankruptcy Court has approved the sale of FTX’s $96.3 million stake in Mysten Labs and the right to sell SUI tokens to Mysten Labs. The sale was part of the FTX bankruptcy process, and Mysten Labs co-founder and CEO, Evan Cheng, said that the buyback demonstrates their confidence in their capabilities, technology, and partners.
Mysten Labs is a Layer 1 blockchain SUI developer that attracted a $300 million Series B investment at a valuation of $2 billion in August 2022. FTX Ventures led the investment, with a16z, Jump Crypto, and Binance Labs among others participating as investors. FTX Ventures invested $101 million in Mysten Labs and acquired approximately 570,000 shares of preferred stock and subscription rights for about 890 million SUI tokens in Mysten Labs.
The FTX bankruptcy liquidation team and Mysten Labs agreed on the sale and purchase plan on March 22, and they applied for approval to the bankruptcy court. Mysten Labs proposed a redemption to the FTX bankruptcy settlement team on March 16.
The approval of the sale by the Delaware bankruptcy court is significant for both FTX and Mysten Labs. For FTX, the sale will help them recoup some of their losses from their investment in Mysten Labs, while for Mysten Labs, it is an opportunity to increase its ownership in the company.
This news comes as a positive development for the blockchain industry, particularly in the wake of the recent market volatility. It indicates that despite the challenges facing the industry, there are still opportunities for growth and investment.
Mysten Labs’ success in securing the investment of some of the leading players in the blockchain industry is a testament to the strength of its technology and capabilities. The company’s ability to attract significant investment is a sign of its potential to disrupt the industry and drive innovation.
Overall, the sale of FTX’s stake in Mysten Labs is a significant development for the blockchain industry. It highlights the continued growth and investment in the sector and the potential for blockchain technology to transform various industries. As the industry continues to evolve, it will be exciting to see how companies like Mysten Labs will continue to shape the future of blockchain.
