FTX Bankruptcy Update: FTX Debtors to Sell Mysten Labs Stake for $95 Million

cryptonews.com:

The infamous crypto exchange FTX will reportedly sell its stake in Web3-focused startup Mysten Labs in an effort to pay back its customers.

The new management at FTX is continuing its mission to collect money to return to the victims of the old management's practices. 

The bankrupt company said it would sell the stake in Mysten Labs for $95 million, Reuters reported. Notably, it had paid some $101 million for these preferred shares last year, leading a funding round that valued the Web3 platform at more than $2 billion.

FTX also managed to reach a deal this week to recover $404 million in cash from the Bahamas-based Modulo Capital, a different Reuters report said on Wednesday, citing court documents. It got the majority of the $475 million that FTX's parent company, the also bankrupt Alameda Research, had sent to this hedge fund in a series of transactions last year - at the time when the exchange was already bleeding money. 

Modulo also gave up its claim to $56 million in assets held on FTX, said the report, adding:

"The settlement recovers most of those payments and takes 99% of Modulo's remaining assets, according to the filings."

Speaking of the Bahamas, just this past week, FTX  asked a US bankruptcy judge to protect its property from the liquidators in charge of winding down its Bahamas unit, FTX Digital Markets. It argued in a lawsuit that the liquidators were wrongly claiming ownership of the exchange's assets, saying that the Bahamian affiliate was a "corporate shell" and the "centerpiece" of founder Sam Bankman-Fried's effort "to funnel FTX Trading customer deposits and other valuable property and rights to the Bahamas, out of the reach of American regulators and courts."

FTX filed for bankruptcy protection in early