FTX’s investment arm Alameda Research has agreed to sell its interest in venture capital (VC) firm Sequoia Capital to the Abu Dhabi sovereign wealth fund for $45 million, according to court filings. Sequoia was one of the biggest FTX backers, losing $150 million on its investment after the exchange went bankrupt.
Abu Dhabi Government-owned Investment Fund to Buy Sequoia Interest from FTX
Alameda Research, the sister trading firm of the now-defunct crypto exchange FTX, has secured a $45 million cash deal to sell its interest in Sequoia Capital to the Abu Dhabi sovereign wealth fund. The agreement is part of Alameda’s efforts to offload its crypto and tech venture investments to refund creditors.
If all conditions are satisfied, the deal could close on March 31. But the transaction is still pending approval by a Delaware bankruptcy judge, and such arrangements are typically subject to judicial scrutiny.
According to the filing, the purchaser is Al Nawwar Investments RSC Limited, an Abu Dhabi government-owned investment fund with a current stake in Sequoia. The filing says Alameda received interest from four potential buyers, ultimately striking a deal with Al Nawwar Investments “based on its superior offer and ability to execute the Sale Transaction within a short time frame.”
The FTX-Sequoia Relationship
The deal between Alameda and Sequoia comes just a few months after FTX filed for bankruptcy, sending shockwaves through the digital assets industry. Alameda played a central role in FTX’s collapse, with the crypto exchange borrowing up to $10 billion of user funds to help the trading firm cover its liabilities.
Sequoia Capital, one of the most successful VC firms in Silicon Valley, has been among the biggest FTX backers. The firm poured $225 million into FTX in 2021, most of that money coming from its multi-billion growth fund.
After FTX collapsed in November 2022, Sequoia wrote down its investments to zero. The VC firm, which lost $150 million on its FTX investments, said Sam Bankman-Fried’s company misled it.
“What gets me is not that we made the investment, it’s the year-and-a-half of working relationship after the investment and I still didn’t see it — and that’s difficult,” said Sequoia Capital partner Alfred Lin, referring to the red flags that contributed to FTX’s downfall.
This article originally appeared on The Tokenist
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
