Fintech firm Dave is set to buy back a $100 million stake from FTX at a discounted rate of $71 million, pending court approval. The deal involves purchasing a convertible promissory note previously issued to FTX Ventures, the venture capital arm of bankrupt crypto exchange FTX. Dave offers financial services via a mobile app and has raised a total of $536.3 million in funding over nine rounds. The latest funding for Dave was secured through a $50 million debt emission in September 2023. FTX founder Sam Bankman-Fried has been found guilty of multiple fraud charges and is scheduled for sentencing in March 2024.

Fintech firm Dave has announced an agreement to purchase a $100 million convertible promissory note previously issued to FTX Ventures, the venture capital arm of bankrupt crypto exchange FTX. As per the agreement, Dave will purchase the note for $71 million at a discounted price. The deal is pending approval from a bankruptcy court, with a hearing scheduled for Jan. 25. A convertible promissory note is a financial instrument commonly used by startups. It’s essentially a loan that can be turned into a share of the company later. Dave offers financial services via a mobile application, including savings accounts, cash advances, and spending accounts. According to the company’s Crunchbase profile, it has raised a total of $536.3 million in funding over nine rounds. The latest funding for Dave was secured through a $50 million debit emission in September 2023. The fintech firm partnered with FTX in March 2022 to provide cryptocurrency payments on its platform. The partnership also included a $100 million investment from FTX Ventures. Several investments, payments and donations made by FTX and its subsidiaries over the months prior to the bankruptcy in November 2022 were reclaimed by the bankruptcy court . In a Dec. 19 announcement, FTX debtors announced a global settlement with the Joint Official Liquidators for the firm’s Bahamian arm as part of bankruptcy proceedings. The firms said the settlement was a “novel and mutually-beneficial solution” based on cross-border legal issues. The FTX Debtors entered a Global Settlement Agreement with the Joint Official Liquidators on behalf of FTX Digital Markets Ltd. Read more here: https://t.co/cf5pbFvcEV — FTX (@FTX_Official) December 19, 2023 FTX debtors have filed multiple requests to liquidate the company’s assets to repay creditors since November 2022. A court has granted approval for several sales, including the divestment of LedgerX, the sale of trust assets valued at $873 million , the liquidation of digital assets worth $3.4 billion, and an agreement resolving issues between FTX and Genesis. Of the roughly $8.7 billion in misappropriated customer funds, at least $7 billion in assets have been recovered of t. FTX founder Sam Bankman-Fried was found guilty of two counts of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of commodities fraud conspiracy and one count of money laundering conspiracy on Nov. 2. His sentencing has been scheduled for March 28, 2024. Magazine: Deposit risk: What do crypto exchanges really do with your money? 

Fintech Firm Dave to Buy Back $100M Stake from FTX at Discounted Rate