Banking app dev to buy back $100M stock from FTX

Fintech company Dev has announced that it has agreed to buy a $100 million convertible promissory note issued to FTX Ventures, the arm of previously bankrupt crypto exchange FTX Capital.

Under the deal, Dave will buy the notes at a discount for $71 million. The deal is pending approval from the bankruptcy court, with a hearing scheduled for Jan. 25. A convertible promissory note is a financial instrument commonly used by startups. It is essentially a loan that can later be converted into shares in the company.

Dev offers financial services through a mobile app, including savings accounts, cash advances and checking accounts. According to the company's Crunchbase profile, it has raised a total of $536.3 million in funding in nine rounds. The latest funding for Dave came in September 2023 with a $50-million debt issuance.

The fintech company partnered with FTX in March 2022 to offer cryptocurrency payments on its operating system. The partnership also includes a $100-million investment from FTX Ventures.

Several investments, payments and donations made by FTX and its subsidiaries in the months leading up to the November 2022 bankruptcy were returned by the bankruptcy court.

In a Dec. 19 announcement, FTX's creditors announced an international settlement for the company's Bahamian arm with joint official liquidators as part of bankruptcy proceedings. The companies said the settlement is a “new and mutually beneficial solution” based on cross-border legal issues.

The FTX Debtors entered into 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

As of November 2022, FTX's creditors have filed multiple requests to liquidate the company's assets. The court approved several sales, including the divestment of LedgerX, the sale of trust assets valued at $873 million, and the divestment of digital assets worth $3.4 million. billion and an agreement between FTX and Genesis to resolve the issues.

Of the approximately $8.7 billion in misappropriated client funds, at least $7 billion in assets have been recovered. FTX founder Sam Bankman-Fried was found guilty of two felony charges. It was scheduled for March 28, 2024.

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