On March 22, the debtors for the defunct crypto exchange FTX approved an agreement that would sell its preferred stock in Mysten Labs, the company behind the Sui blockchain. The agreement comes after FTX filed for bankruptcy in November 2020.

The proposed deal, which was filed in the United States Bankruptcy Court in the District of Delaware, would see Mysten Labs and the FTX estate agree to a mutual release of claims. As part of the agreement, the debtors plan to sell roughly $95 million worth of preferred stock back to Mysten in addition to $1 million in SUI tokens.

Mysten Labs offered to repurchase the assets in an offer letter to the FTX estate on March 16, but the FTX bankruptcy estate retained investment bank Perella Weinberg Partners (PWP) to solicit interest from other potential buyers before ultimately entering into the deal with Mysten.

FTX Ventures had led Mysten Labs’ high-profile $2 billion Series B fundraise in August, investing $101 million in the round and receiving about 570,000 shares of preferred equity in Mysten Labs and warrants to purchase up to about 890,000,000 SUI tokens. The FTX entities paid about $101 million for the equity and an additional $1 million for the token warrants.

The proposed agreement with Mysten Labs would allow the FTX estate to continue to “solicit higher or better offers from any third party” up until a sale date is finalized by the court.

In a filing, the FTX debtors stated, “After thoroughly evaluating alternatives with the assistance of PWP, the Debtors determined that it was in the best interest of their estates and their constituents to proceed with [Mysten Labs, Inc.] and work toward executing a mutually agreeable transaction, with the expectation that the Debtors will continue marketing the Interests and confirming that no higher and better offer exists over the course of the coming weeks.”

The deal would also see the highly anticipated SUI token being released by Mysten Labs. Mysten Labs, which is focused on building a blockchain that can process transactions faster and cheaper than other popular blockchains, has been working on the SUI token for some time.

Overall, this agreement represents a positive step for the FTX estate and its creditors, as it allows them to monetize their holdings in Mysten Labs and potentially recoup some of their losses. However, it remains to be seen whether the FTX estate will be able to secure a better offer from a third party before the sale date is finalized.

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This article was republished from azcoinnews.com