Dave’s Strategic Move in FTX Venture Amidst Bankruptcy

Dave has disclosed that it will acquire a convertible promissory note worth one hundred million dollars, previously issued to FTX Ventures, the venture capital arm of the defunct cryptocurrency exchange FTX.

Following the arrangement between the parties, Dave will acquire the note at a discounted price of $71 million. Currently, the transaction awaits permission from a bankruptcy court, with a hearing scheduled for January 25. New businesses frequently utilize the convertible promissory note as a financial instrument.

The convertible promissory note has the potential to be converted into a share of the company at a later time. The mobile application that Dave provides allows him to provide a variety of financial services, such as savings accounts, cash advances, and spending accounts.

The Crunchbase profile of the company indicates that it has successfully raised a total of $536.3 million in investment over nine different rounds. With the use of a debit emission of fifty million dollars in September 2023, Dave was able to secure the most recent funding.

In March 2022, the financial technology company formed a partnership with FTX to enable cryptocurrency payments on its platform. Furthermore, FTX Ventures contributed an investment of one hundred million dollars to the collaboration.

FTX and its subsidiaries made several investments, payments, and gifts in the months leading up to the November 2022 bankruptcy, which the bankruptcy court collected.

FTX debtors announced on December 19 that they had reached a global settlement with the Joint Official Liquidators for the Bahamian branch of the company as part of the bankruptcy proceedings.

The companies stated that the settlement was a “novel and mutually beneficial solution” that was based on legal difficulties that occurred across international borders. Beginning in November 2022, FTX debtors have submitted repeated petitions to liquidate the company’s assets to compensate the company’s creditors.

The court has approved the divestment of LedgerX as one of the sales. The court has also approved the sale of trust assets valued at $873 million, the liquidation of digital assets worth $3.4 billion, and an agreement that resolves difficulties between FTX and Genesis.

An estimated $8.7 billion in client funds were stolen, with at least $7 billion in assets recovered from those funds.

On November 2, Sam Bankman-Fried, the creator of FTX, was found guilty of several charges, including 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.

His sentencing is scheduled for March 28th, 2024.