• The US Bankruptcy Court for the District of Delaware recently revealed an agreement between Alameda Research and N Abu Dhabi sovereign wealth fund to sell Alameda’s interest in Sequoia Capital.
• The Purchaser Al Nawwar Investments RSC is a company under the Abu Dhabi government and already owns some shares of Sequoia.
• Alameda Research is attempting to raise enough funds by selling its Sequoia interest to pay its creditors, as well as recovering more than $5 billion in liquid crypto assets and cash from other sales.
FTX Exchange, Alameda Research and Sam Bankman-Fried
The saga of the FTX exchange, its sister company Alameda Research, and former CEO Sam Bankman-Fried continue following the bankruptcy proceedings. There have been many discoveries, rejected pleas, and sales of assets by these parties.
Agreement Between Alameda Research And Abu Dhabi Sovereign Wealth Fund
The latest development is selling Alameda Research’s interest in Sequoia Capital to N Abu Dhabi sovereign wealth fund. A recent court document by the US Bankruptcy Court for the District of Delaware revealed the agreement between the parties. The reason for agreeing to this sale was due to the speed at which this transaction would be executed compared with four other prospective buyers. The Purchaser Al Nawwar Investments RSC is a company under the Abu Dhabi government and already owns some shares of Sequoia. Its deal with Alameda Research is worth $45 million and might be close if approved by Judge John Dorsey from Delaware bankruptcy court.
Assets Sold By FTX After The Bankruptcy Filing
Judge Dorsey had previously signed off on some assets owned by FTX after its filing including LedgerX, Embed, FTX Europe, and FTX Japan. This allowed FTX to recover more than $5 billion in liquid crypto assets and cash that can be used to pay creditors. On March 8th 2021, Judge Dorsey also approved a $445 million claim by Alameda Research on Voyager Digital regarding loan repayments.
FTX Founder SBF Attempt To Raise Cash
Before now SBF had made attempts to raise cash after Binance stopped processes leading up to buying FTX exchange; this includes using weekend negotiations with investors such as SoftBank Vision Fund 2 LP . However none of these offers were accepted or successful at allowing SBF access capital needed for recovery from bankruptcy proceedings .
Conclusion
Alameda’s recent agreement with N Abu Dhabi sovereign wealth fund is another attempt by FTX/SBF to raise enough funds necessary for repayment of debtors involved in bankruptcy proceedings stemming back from November 2020 when Reuters first reported difficulties related to acquiring capital needed for operations .