A Delaware bankruptcy judge has ruled to allow FTX to sell Sequoia Capital Fund to the Abu Dhabi investment arm.

Abu Dhabi Investment arm to purchase FTX related Sequoia Capital Fund

A Delaware judge has approved the sale of Sequoia Capital Fund to the Abu Dhabi investment arm, according to a March 28, 2023, court filing. The ruling was made to answer a declaration request filed by FTX on March 8.

Judge John Dorsey has declared that the sale of the Capital Fund to Al Nawwar Investments RSC limited has satisfied all the required standards per the US bankruptcy law that prevents the unduly hasty sale of assets and thus should proceed.

FTX also requested the judge to offer an indefinite delay to the sale of its stock-clearing business, Embed. Embed was initially used as a solution to facilitate a quick raise of funds for outstanding creditors. The hearing for the sale of Embedd has been scheduled for March 27 but is now on hold “until further notice.”

FTX was plagued by too high withdrawal requests than its treasuries had in November 2022, leading to the company filing for Chapter 11 bankruptcy proceedings to help protect its assets and liquidate them. The developments led to investigations that saw its CEO, Sam Bankman-Fried, arrested and charged with one of the most prominent cases in the US.

The case against Sam Bankman-Fried is continuing in tandem with the bankruptcy proceedings. Keep watching Fintech Express for updates on these and other finance-related news.