Delaware Bankruptcy Judge Approves the Sale of FTX’s Interest in Sequoia Capital Fund to Abu Dhabi’s Investment Department

03/29/2023 07:50 • Blockchain Briefs • 141 views

According to reports, according to court documents, the Delaware bankruptcy judge has approved the sale of FTX’s $45 million interest in Sequoia Capital Fund to the investment department in Abu Dhabi. In addition, FTX requested an indefinite delay in the sale of its stock clearing business, Embed. The hearing on the sale of Embed was originally scheduled for February 27, but was subsequently postponed. Court documents indicate that Embed’s sale hearing will be suspended “until further notice.”.

FTX’s $45 million equity in Sequoia Capital Fund was sold

Introduction

According to recent reports, the Delaware bankruptcy judge has approved the sale of FTX’s $45 million interest in Sequoia Capital Fund to the investment department in Abu Dhabi. Additionally, FTX has requested an indefinite delay in the sale of its stock clearing business, Embed. The hearing on the sale of Embed was originally scheduled for February 27, but it has been postponed. Court documents indicate that Embed’s sale hearing will be suspended “until further notice.”

What Led to the Sale of FTX’s Interest in Sequoia Capital Fund?

The sale of FTX’s interest in Sequoia Capital Fund is part of the bankruptcy proceedings that FTX has been involved in recently. In November 2021, FTX filed for Chapter 11 bankruptcy in the United States after facing significant losses due to the regulatory crackdown on the cryptocurrency industry. FTX is a leading crypto exchange platform that offers trading services for Bitcoin, Ethereum, and other digital assets.

Who will Acquire FTX’s Interest in Sequoia Capital Fund?

The investment department of Abu Dhabi will acquire FTX’s $45 million interest in Sequoia Capital Fund. This is significant, as it indicates that Abu Dhabi is expanding its investment portfolio in the technology industry by investing in venture capital funds. Sequoia Capital Fund is a top-tier venture capital firm that has backed several successful companies, including Google, Apple, and Airbnb.

What is Embed and Why is Its Sale being Delayed?

Embed is a subsidiary of FTX that offers stock clearing services for broker-dealers. The sale hearing for Embed was initially scheduled for February 27. However, FTX has requested an indefinite delay in the hearing. The reason behind the delay is not clear, but it could be related to the ongoing bankruptcy proceedings and efforts to restructure FTX’s business.

Conclusion

The approval of the sale of FTX’s interest in Sequoia Capital Fund to Abu Dhabi’s investment department is significant for both FTX and Abu Dhabi. It indicates that Abu Dhabi is expanding its portfolio in the technology industry globally. Additionally, FTX’s request for an indefinite delay in the sale of Embed could be an effort to restructure its business and get back on track financially.

FAQs

1. What is FTX, and why did it file for Chapter 11 bankruptcy?
FTX is a leading crypto exchange platform that offers trading services for Bitcoin, Ethereum, and other digital assets. FTX filed for Chapter 11 bankruptcy after facing significant losses due to the regulatory crackdown on the cryptocurrency industry.
2. Who will acquire FTX’s $45 million interest in Sequoia Capital Fund?
The investment department of Abu Dhabi will acquire FTX’s $45 million interest in Sequoia Capital Fund.
3. Why has the sale hearing for Embed been postponed?
FTX has requested an indefinite delay in the sale hearing for Embed. The reason behind the delay is not clear, but it could be related to the ongoing bankruptcy proceedings and efforts to restructure FTX’s business.

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