Neobank Dave has agreed to pay $71 million to liquidators of the now-bankrupt exchange FTX by acquiring a convertible promissory note from FTX Ventures. The note, originally issued by FTX Ventures, is valued at $100 million. Under the terms of the agreement, Dave will obtain the note at a discounted price of $71 million. The transaction is subject to the approval of a bankruptcy court, with a hearing scheduled for January 25.
Dave and FTX Ventures formed a strategic alliance in March 2022, which involved a $100 million investment from FTX Ventures in Dave and plans to develop cryptocurrency-related offerings.
Established in 2016, Dave is a fintech firm that offers financial services such as checking accounts without physical bank branches. It raised over $500 million in funding and went public in January 2022.
Since FTX’s collapse in November 2022, FTX debtors have sought court permissions to sell off the company’s holdings to reimburse creditors. Several approvals have been granted, including the sale of LedgerX, trust assets, and digital assets, as well as a settlement resolving disputes between FTX and Genesis.
