Alameda Research closes a deal worth millions of dollars.
Alameda Research, FTX’s investment arm that has been heavily implicated by the crypto exchange’s collapse, had reached an agreement to sell its stake in venture capital firm Sequoia Capital.
Based on the court documents, the stake, valued at $45 million, will be sold to an Abu Dhabi sovereign wealth fund.
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The $45 million deal to sell its stake in Sequoia Capital to the sovereign fund is part of Alameda’s effort to offload its venture tech and pay back its crypto investors. If the court is satisfied with all documents, the deal will close on March 31st.
The buyer is Al Nawwar Investments RSC Limited, a sovereign investment fund owned by the Abu Dhabi government, which already owns a stake in Sequoia Capital.
Court filings state that four different buyers approached Alameda to purchase the stake. However, Alameda Research settled on Al Nawwar because of “its superior offer and ability to execute the Sale Transaction within a short time frame.”
Alameda Research was one of the companies that collapsed together with the crypto exchange FTX. During its existence, FTX transferred nearly $10 billion of investor funds to Alameda as loans that were used to cover its liabilities.
Before FTX’s collapse, Sequoia Capital was amongst FTX’s largest backers. The venture capital firm lost a $150 million investment once FTX went under.
At the beginning of February, an Alameda Research-related wallet received around $13 million worth of crypto from the crypto exchange Bitfinex and other sources. When commenting on the matter, Bitfinex claimed that the transfer was made as a part of Alameda Research’s bankruptcy proceedings.