March 28, 2024
Dave's Bold Play: Fintech Firm Set to Reclaim $100 Million Stake in FTX Venture Buyback
Latest Cryptocurrency News

Dave’s Bold Play: Fintech Firm Set to Reclaim $100 Million Stake in FTX Venture Buyback

In a strategic move, fintech firm Dave has announced a groundbreaking agreement to acquire a $100-million convertible promissory note previously issued to FTX Ventures, the venture capital arm of the now-bankrupt crypto exchange FTX. The deal involves Dave purchasing the note for $71 million at a discounted rate, pending approval from a bankruptcy court, with a crucial hearing set for January 25.

A convertible promissory note, a commonly utilized financial instrument in startup circles, acts as a loan that can be converted into a share of the company at a later stage. Dave, renowned for its mobile application offering diverse financial services such as savings accounts, cash advances, and spending accounts, is making this strategic move to strengthen its financial position.

According to Dave’s Crunchbase profile, the fintech company has successfully raised a total of $536.3 million in funding across nine rounds. The latest funding injection came in the form of a $50-million debit emission secured in September 2023.

Dave had previously partnered with FTX in March 2022 to integrate cryptocurrency payments into its platform. This collaboration also included a significant $100-million investment from FTX Ventures. However, various investments, payments, and donations made by FTX and its subsidiaries leading up to the November 2022 bankruptcy were subject to reclamation by the bankruptcy court.

FTX debtors recently announced a global settlement with the Joint Official Liquidators for the firm’s Bahamian arm, framing it as a “novel and mutually beneficial solution” amid the ongoing bankruptcy proceedings. The debtors have filed multiple requests to liquidate FTX’s assets to meet creditor obligations since November 2022.

Among the approved sales include the divestment of LedgerX, the sale of trust assets valued at $873 million, the liquidation of digital assets worth $3.4 billion, and an agreement resolving issues between FTX and Genesis. Despite the misappropriation of approximately $8.7 billion in customer funds, the recovery efforts have successfully reclaimed at least $7 billion in assets.

Notably, FTX founder Sam Bankman-Fried faced legal repercussions, being found guilty of wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy, and money laundering conspiracy on November 2. The sentencing for Bankman-Fried is scheduled for March 28, 2024, adding a significant chapter to the ongoing FTX saga.

Image by Raisin – Finance Stock Images on Flickr

Related posts

Mumbai Unveils Metropolis Metaverse to Showcase Infrastructure Megaprojects

Anna Garcia

Cristiano Ronaldo Faces $1 Billion Lawsuit Over Binance Ties

Cheryl  Lee

Kraken Gains Regulatory Green Light in Ireland and Spain for Crypto Expansion

Eva Moore

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More