• FTX has announced that it is selling its stake in Mysten Labs back to the company.
• The funding round last year saw Mysten Labs hit a valuation of $2 billion, with investments from multiple well-known firms, including FTX.
• Mysten Labs has agreed to buy back both its stock and SUI tokens at a slightly lower price than they were originally sold for.
FTX Announces Intention to Sell Stake in Mysten Labs
Yesterday, lawyers from the FTX Group announced their intention to settle out of court with Modulo Capital, a measure that effectively wiped the VC firms’ books by about 99%. In another bid to raise as many funds as possible, FTX outlined intentions to sell its stake in Mysten Labs back to the company.
Mysten Labs’ Valuation and Investors
Mysten Labs is a solid firm whose funding round last year saw it hit a valuation of $2 billion. The round was led by FTX but also included multiple well-known firms such as a16z Binance Labs, Franklin Templeton, Circle Ventures and Coinbase Ventures. At the time, FTX bought $1 million worth of SUI tokens and approximately $101 million worth of preferred stock in the company.
FTX’s Attempts at Funding Clawbacks
The sale is part of a series of funding clawbacks that FTX is attempting, to varying degrees of success. Legally, a recently bankrupted company can attempt to claw back funds for up to one year; however, Mysten has agreed to settle out of court and is willing to buy back both its stock and SUI tokens at a slightly lower price than they were originally sold for.
Mysten Agrees To Buy Back Shares
Mysten has agreed to buy back both its stock and SUI tokens at a slightly lower price than they were originally sold for. This serves as an effort on behalf of both parties involved–with FTX taking advantage of an opportunity while also enabling Mysten’s growth–and will result in successful outcomes for both entities in terms of capital gain or other benefits associated with ownership stakes within the project itself.
In conclusion, this sale marks yet another step forward in what could be seen as an advantageous situation for all parties involved: investors get their money’s worth; FTX gets more cash; and Mysten continues growing towards greater heights with more funds under their belt.