FTX plans to sell stake in Mysten Labs for $96M News ▸ FTX ▸ Bankruptcy
FTX plans to sell stake in Mysten Labs for $96M
The sale amount includes $1 million of SUI token warrants.
1 min read
Updated: Mar. 23, 2023 at 9:52 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
FTX has submitted a motion through which it intends to sell its stake in Mysten Labs, according to a bankruptcy court filing on March 22.
The value of the sale is estimated to be more than $96 million. About $95 million of that amount consists of shares, though it also includes $1 million of SUI token warrants — that is, a promise to receive Mysten Labs’ future crypto token when it is released.
FTX acquired those assets by leading a Series B fundraising round for Mysten Labs in August 2022 and in other transactions around that time. The fundraiser brought in $300 million from FTX and other companies and raised Mysten Labs’ valuation to $2 billion.
Proceeds from the sale are intended to help return value to customers in the aftermath of FTX’s collapse.
Mysten Labs builds the Sui Blockchain, which aims to act as a competitor to Ethereum while providing greater scalability and transaction throughput. The project has gained initial support from Chinese tech and commerce giant Tencent.
The Sui Blockchain is still in its early stage and its SUI token is not in circulation.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.