By Becky Yerak
The management team guiding FTX through bankruptcy reached a $45 million cash deal to sell its limited partnership interests in a Sequoia Capital venture fund to Abu Dhabi's investment arm.
The proposed deal requires approval from the U.S. Bankruptcy Court in Wilmington, Del., where FTX filed for protection in November. The bankrupt crypto exchange has identified a deficit of $8.9 billion in customer funds that it can't account for.
Before filing for bankruptcy, FTX regularly invested in a wide range of assets. It acquired the Sequoia interests last year, saying it would commit $100 million in capital. To date, it contributed roughly $50 million, court papers show.
FTX said in court papers that a prompt sale of the interests would enable it to defray or avoid future expenses associated with the investment, including management fees and potential future calls by Sequoia for more capital.
(END) Dow Jones Newswires
03-09-23 1438ET
