Finance App Dave Set to Reacquire $100M Stake from FTX

The fintech firm Dave has entered into an agreement to buy back a $100 million convertible promissory note previously issued to FTX Ventures, the venture capital wing of the collapsed cryptocurrency exchange FTX.

Dave has agreed to acquire the note for $71 million, a transaction at a reduced rate. The completion of this deal awaits approval from a bankruptcy court, with proceedings scheduled for January 25. Convertible promissory notes, commonly used by startups, are a type of loan that can later be converted into equity.

Dave, which provides financial services through its mobile app, including savings accounts, cash advances, and spending accounts, has raised about $536.3 million over nine funding rounds according to its Crunchbase profile. Its most recent financial infusion was a $50 million debit emission in September 2023.

In March 2022, Dave partnered with FTX to integrate cryptocurrency payments into its platform, a move that also included a $100 million investment from FTX Ventures.

Following FTX’s bankruptcy in November 2022, the bankruptcy court has been reclaiming several investments, payments, and donations made by FTX and its subsidiaries.

On December 19, FTX debtors announced a comprehensive settlement with the Joint Official Liquidators of FTX’s Bahamian division as part of the bankruptcy proceedings. The settlement, hailed as a creative and mutually beneficial solution, addresses complex cross-border legal issues.

Since declaring bankruptcy in November 2022, FTX debtors have filed multiple motions to liquidate assets to repay creditors. The court has authorized various sales, including the divestment of LedgerX, the sale of trust assets worth $873 million, the liquidation of $3.4 billion in digital assets, and a resolution of disputes between FTX and Genesis.

Of the estimated $8.7 billion in misappropriated customer funds, authorities have recovered at least $7 billion. FTX founder Sam Bankman-Fried was convicted on various charges, including wire fraud, securities fraud, and money laundering conspiracy, on November 2. His sentencing is scheduled for March 28, 2024.

Francis Caldonia

Francis Caldonia is an accomplished article writer deeply passionate about the Crypto and Web3 realms. With a knack for demystifying intricate topics, Francis has earned recognition as a trusted voice in the realm of decentralized technologies and digital assets.

Related Articles

Back to top button