Mysten Labs Repurchases Shares in FTX for $96M

Mysten Labs, a blockchain and technology company that was among the investors of the bankrupt FTX exchange, regained control on the Sui blockchain by buying back their shares in FTX.

What is Mysten Labs?

Mysten Labs is a company that focuses on blockchain technology, smart contracts, and other advanced technologies. Collaborating with large corporate companies and governments, Mysten Labs was among the investors of the bankrupt FTX exchange.

What happened to the FTX exchange?

FTX was founded by Sam Bankman-Fried in 2019 and quickly grew to become the world’s second-largest crypto exchange by 2022. However, in 2022, the company went bankrupt and deeply shook the entire crypto market. The reason for the bankruptcy was simply due to the company’s inadequate management of financial transactions, resulting in significant losses.

Recently, there have been reports circulating that FTX is considering relaunching its crypto exchange in the second quarter, raising serious concerns among crypto investors about whether all users’ funds will be returned if the exchange reopens, and whether users will trust the exchange enough to resume trading.

Is the FTX exchange reopening?

According to Reuters, FTX is considering relaunching its crypto exchange in the second quarter. For more information on the details of the news, you can read our latest article.

Mysten Labs was a part of FTX’s $300 million Series B financing round held in September 2022. The buyback is said to have helped Mysten Labs regain control on the Sui blockchain, which was a part of FTX’s bankruptcy proceedings. The buyback price reportedly included “all warranty rights to purchase FTX’s Sui tokens.

What is the Sui blockchain?

The Sui blockchain and cryptocurrency, developed by Mysten Labs, are noteworthy for their fast transaction confirmation times and low fees. The Sui blockchain offers a smart contract feature similar to Ethereum and operates on the Meta platform.

The Sui blockchain has garnered significant interest from investors and, according to The Block Pro’s Deals Dashboard, the company has raised a total of $336 million in investments since late 2021.

“We are delighted to complete this transaction, which demonstrates immense confidence in our talents, technology, and partnerships”
Evan Cheng, Co-Founder and CEO of Mysten Labs

Ultimately, this buyback is said to have helped Mysten Labs regain control on the Sui blockchain and will provide more opportunities for the development and expansion of Sui tokens.

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