Neobank Dave to Pay $71 Million to FTX Liquidators
Neobank Dave has entered into an agreement to pay $71 million to FTX liquidators by acquiring a convertible promissory note from FTX Ventures. The note, originally issued by FTX Ventures, is valued at $100 million. This deal represents a significant discount for Dave.
Approval Pending from Bankruptcy Court
The completion of the transaction is contingent on the approval of a bankruptcy court, with a crucial hearing scheduled for Jan. 25. This move comes after Dave and FTX Ventures formed a strategic alliance in March 2022. As part of the initial partnership, FTX Ventures invested $100 million in Dave through the convertible note and both companies planned to develop cryptocurrency-related offerings.
Dave’s Background and Funding
Established in 2016, Dave has raised over $500 million in funding, including an investment from entrepreneur Mark Cuban. The neobank follows the model of challenger banks and offers financial services such as checking accounts without physical branches. Dave went public in January 2022.
Sale of FTX Holdings to Reimburse Creditors
Since FTX’s collapse in November 2022, efforts have been made by FTX debtors to obtain court permissions for selling off the company’s holdings to reimburse creditors. Various assets have received court approvals for sale, including LedgerX, trust assets valued at approximately $873 million, liquidation of digital assets worth $3.4 billion, and settlement of disputes between FTX and Genesis.
Hot Take: Neobank Dave Acquires Convertible Note from FTX Liquidators
Neobank Dave has struck a deal with FTX liquidators, acquiring a convertible promissory note valued at $100 million for $71 million. This transaction, subject to bankruptcy court approval, signifies a significant discount for Dave. The partnership between Dave and FTX Ventures, formed in March 2022, laid the groundwork for this agreement. Dave’s move to pay FTX liquidators demonstrates its commitment to navigating the cryptocurrency landscape and solidifying its position as a key player in the industry.
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