Neobank Dave can pay $71 million to FTX liquidators by buying a convertible promissory word from FTX Ventures, valued at $100 million.
FTX Ventures, a enterprise capital subsidiary linked to the now-bankrupt change FTX, initially issued this word. Beneath the phrases of this new association, Dave has agreed to safe the word for $71 million, a considerable low cost.
The completion of this transaction is topic to the approval of a chapter courtroom, with a vital listening to slated for Jan. 25. This growth follows a strategic alliance shaped in March 2022 between Dave and FTX Ventures. The preliminary partnership entailed a $100 million funding from FTX Ventures in Dave by means of the aforementioned word, alongside collaborative plans to develop cryptocurrency-related choices.
Established in 2016, Dave raised over $500 million in funding, together with a $3 million seed funding from famend entrepreneur Mark Cuban. The corporate, which went public in January 2022, follows the mannequin of challenger banks and gives monetary providers equivalent to checking accounts with out bodily financial institution branches.
Since FTX’s collapse in November 2022, FTX debtors have actively sought courtroom permissions to unload the corporate’s holdings to reimburse collectors. These efforts have seen a number of approvals from courts, permitting the sale of assorted belongings.
These embrace the divestment of LedgerX, the sale of belief belongings valued at roughly $873 million, the liquidation of digital belongings estimated at $3.4 billion, and a settlement resolving disputes between FTX and Genesis.