Alameda Research Cashes In On Sequoia Capital Investment

Alameda Research, a cryptocurrency trading firm, has reportedly cashed in on its investment from Sequoia Capital. The firm has been able to boost its financial position thanks to the investment, which has helped it expand its operations and improve its offerings. The move is expected to have a positive impact on Alameda Research’s business, as it seeks to establish itself as a leading player in the cryptocurrency trading space. The news has generated a lot of interest in the industry, as investors look to capitalize on the growing popularity of cryptocurrencies.

The ongoing bankruptcy proceedings involving FTX exchange, Alameda Research and former CEO Sam Bankman-Fried continue to unfold. There have been several discoveries, rejected pleas and sales of assets by these parties. The latest development is Alameda Research’s sale of its interest in Sequoia Capital to N Abu Dhabi sovereign wealth fund. This agreement was revealed in a court document by the US Bankruptcy Court. The sale was agreed upon due to the speed of execution by the purchaser and its superior offer compared to four other prospective buyers.

The purchaser, Al Nawwar Investments RSC, is a company under the Abu Dhabi government which already owns some shares of Sequoia. The deal with Alameda Research is worth $45 million and could be finalized by the end of March with approval from Delaware bankruptcy judge John Dorsey. Dorsey has been overseeing the FTX legal proceedings and previously allowed the sale of some assets owned by FTX after the bankruptcy filing.

FTX could recover over $5 billion in liquid crypto assets and cash after the sale of these assets. Additionally, on March 8, the judge approved a $445 million claim by Alameda Research on Voyager Digital regarding loan repayments. The recent agreement by Alameda Research to sell its Sequoia interest is another attempt by FTX to raise enough funds to pay its creditors.

Previously, FTX founder SBF made notable attempts to raise cash after Binance stopped processes to buy the exchange. SBF blamed several factors for FTX’s collapse, including the extended bearish market of 2022. The professionals working on the FTX bankruptcy have billed $38 million for January 2023, with three firms assigned to the case comprising 180 lawyers and more than 50 non-lawyers.

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