Neobank Dave will pay $71 million to FTX liquidators by acquiring a convertible promissory note from FTX Ventures, valued at $100 million.
FTX Ventures, a venture capital subsidiary linked to the now-bankrupt exchange FTX, originally issued this note. Under the terms of this new arrangement, Dave has agreed to secure the note for $71 million, a substantial discount.
The completion of this transaction is subject to the approval of a bankruptcy court, with a critical hearing slated for Jan. 25. This development follows a strategic alliance formed in March 2022 between Dave and FTX Ventures. The initial partnership entailed a $100 million investment from FTX Ventures in Dave through the aforementioned note, alongside collaborative plans to develop cryptocurrency-related offerings.
Established in 2016, Dave raised over $500 million in funding, including a $3 million seed investment from renowned entrepreneur Mark Cuban. The company, which went public in January 2022, follows the model of challenger banks and offers financial services such as checking accounts without physical bank branches.
Since FTX’s collapse in November 2022, FTX debtors have actively sought court permissions to sell off the company’s holdings to reimburse creditors. These efforts have seen several approvals from courts, allowing the sale of various assets.
These include the divestment of LedgerX, the sale of trust assets valued at approximately $873 million, the liquidation of digital assets estimated at $3.4 billion, and a settlement resolving disputes between FTX and Genesis.
