Yesterday, lawyers from the FTX Group announced their intention to settle out of court with Modulo Capital, a measure that effectively wiped the VC firms’ books by about 99%.

Mysten Takes it in Stride

Today, in another bid to raise as many funds as possible, FTX outlined intentions to sell its stake in Mysten Labs back to Mysten.

Unlike Modulo – a company whose capital seems to have been almost entirely FTX-sourced – Mysten Labs, the creators of the Sui blockchain, is a solid firm whose funding round last year saw it hit a valuation of $2 billion.

The funding round in question was, indeed, led by FTX. However, the failed exchange was not the only big-league backer: a16z, Binance Labs, Franklin Templeton, Circle Ventures, Coinbase Ventures, and many more well-known firms also invested substantial amounts into Mysten Labs.

At the time, FTX bought $1 million worth of SUI tokens and approximately $101 million worth of preferred stock in the company, according to Reuters.

Mysten Agrees to Buy Back Shares

Legally, a recently bankrupted company can attempt to claw back funds for up to one year.

However, Mysten has agreed to settle out of court and is willing to buy back both its stock and SUI tokens, albeit at a slightly lower price than they were originally sold for.

“The Debtors carefully considered and analyzed the offer as set forth in the Agreement in comparison to its other options and concluded that a sale of the Interests will result in obtaining maximum value for the Interests, and is in the best interests of the Debtors’ estates and creditors. The Purchase Price is equal to approximately 95% of the amount FTX Ventures had originally invested in the Preferred Stock of Purchaser-Subject Company, plus 100% of the amount Sellers paid for the SUI Token Warrants.”

The proposal will now be submitted to a judge