Abu Dhabi Firm Interested in Purchasing FTX Shares in Sequoia Capital

The Abu Dhabi Investment Authority (ADIA)’s Al Nawwar Investments RSC Limited inked a deal with FTX’s investment arm, Alameda Research, to purchase FTX shares in Sequoia Capital.

Waiting for approval by Delaware bankruptcy court Judge John Dorsey, the deal is worth $45 million in cash as it is considered an attempt for the collapsed company to sell its assets in early-stage crypto and tech ventures in a bid to repay creditors, according to Coin Desk.

According to the documents, the bankrupt cryptocurrency exchange has given eight potential buyers access to numerous information about its interests, after entering into non-disclosure agreements with them. Four of them, including Al Nawwar Investments RSC Limited, entered into negotiations with two for the sale of assets in the Sequoia Capital Fund.

The deal could be finalized on March 31 after being approved by Dorsey as the agreements made by bankrupt companies are subject to judicial review, according to the document. The UAE company is ultimately owned by the government of Abu Dhabi and already invests in Sequoia.

Earlier in January, the troubled crypto exchange FTX recovered $5 billion in cash and liquid cryptocurrencies, which could be used to repay customers and investors after being sold.

FTX group filed for bankruptcy protection in November, and Dorsey granted permission in January for some of FTX’s more easily separable assets to be offered for sale. Those included derivative arm LedgerX, stock-clearing platform Embed, and Japanese and European units.

Its founder Sam Bankman-Fried was arrested in the Bahamas at the request of the US government. SBF, 30, faces criminal charges related to the bankruptcy of the crypto platform in November. He faces charges of money laundering, wire fraud, wire fraud conspiracy, securities fraud, and securities fraud conspiracy.