Fintech company Dave to pay $71 million to FTX liquidators
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Neobank Dave will pay $71 million to FTX liquidators by acquiring $100 million worth of convertible promissory notes from FTX Ventures.
FTX Ventures, a venture capital subsidiary associated with the now-bankrupt exchange FTX, originally issued the Notes.Under the terms of this new arrangement, Dave agree That’s a big discount to get the notes for $71 million.
Completion of the deal is subject to bankruptcy court approval, with a key hearing scheduled for January 25. This development follows the formation of a strategic alliance between Dave and FTX Ventures in March 2022. The initial partnership includes FTX Ventures investing $100 million in Dave via the above description, as well as plans to collaborate on the development of cryptocurrency-related products.
Founded in 2016, Dave has raised more than $500 million in funding, including a $3 million seed investment from famed entrepreneur Mark Cuban. The company, which went public in January 2022, follows the challenger bank model of offering financial services such as checking accounts without physical bank branches.
Since FTX collapsed in November 2022, FTX debtors have been aggressively seeking court permission to sell their shares in the company to repay creditors. These efforts have received multiple court approvals, allowing for the sale of various assets.
These include the divestiture of LedgerX, the sale of trust assets worth approximately $873 million, the liquidation of approximately $3.4 billion worth of digital assets, and the settlement of a dispute between FTX and Genesis.
