FTX Ventures, the venture capital arm of bankrupt crypto exchange FTX, has agreed to sell a $100-million convertible promissory note to Dave, a fintech firm specializing in financial services through its mobile application.
The note will be used to finance the acquisition of a controlling interest in FTX.
The new deal, if approved by the bankruptcy court, would see Dave purchase the note for a discounted price of $71 million.
The startup has announced that it will be using a convertible promissory note to secure an additional $1 million in funding.
Dave, a startup known for its offerings such as savings accounts, cash advances, and spending accounts, has secured a total of $536.3 million in funding over nine rounds, according to its Crunchbase profile.
The startup has announced that it will be using a convertible promissory note to secure an additional $1 million in funding. This note is a financial instrument commonly used by startups and will function as a loan that can be converted into a share of the company at a later stage.
Dave and FTX are now in the process of renegotiating their partnership.
Dave and FTX’s partnership began in March of 2022 when they partnered to facilitate cryptocurrency payments on Dave’s platform. As part of this partnership, FTX Ventures made a $100 million investment in Dave.
However, following FTX’s bankruptcy in November 2022, the bankruptcy court reclaimed various investments, payments, and donations made by FTX and its subsidiaries. Dave and FTX are now in the process of renegotiating their partnership.
FTX debtors have announced a global settlement with the Joint Official Liquidators for FTX’s Bahamian arm. This settlement is seen as a mutually-beneficial solution that addresses cross-border legal issues.
FTX Debtors Seek to Liquidate Assets
FTX’s creditors are now in a race against time to liquidate the company’s assets and repay their debts.
Since November 2022, FTX’s creditors have been in a race against time to liquidate the company’s assets and repay their debts.
The court has already granted approval for several sales, including the divestment of LedgerX and the liquidation of digital assets worth $3.4 billion.
After months of negotiations, FTX and Genesis have finally reached an agreement to resolve all outstanding issues between the two companies.
This is great news for customers of both firms, as it means that the $8.7 billion in misappropriated customer funds is closer to being recovered. While there is still a long way to go, this is a major step forward.
The case, filed in November, is more complex and time-consuming than other crypto bankruptcies, according to Alan R. Rosenberg, a partner at Markowitz Ringel Trusty & Hartog. Rosenberg believes the FTX case will drag on for an extended period due to the litigation of various clawback claims.
FTX may have to face a long legal battle as it tries to recover funds paid out in the months leading up to its insolvency.
The legal battle FTX faces to recover funds paid out in the months leading up to its insolvency could be long and drawn out.
FTX is fighting not only clawback claims, but also a $24 billion claim from the Internal Revenue Service (IRS) for unpaid taxes. This complicates the bankruptcy proceedings for the company.