Bankrupt cryptocurrency exchange FTX sells note to Dave
- Dave to buy back $100 million note from FTX for $71 million
- Deal subject to approval by bankruptcy court
- FTX invested $100 million in Dave in March 2022
- FTX accused of using customer funds for investment
- Dave expects to have sufficient funds for growth plan
Banking app Dave has reached an agreement to repurchase a $100 million convertible promissory note from bankrupt cryptocurrency exchange FTX. The note, originally invested by FTX Ventures in March 2022, will be bought back by Dave for a discounted price of $71 million. The deal is pending approval from the bankruptcy court overseeing FTX’s case, with a hearing scheduled for January 25. The U.S. Securities and Exchange Commission has accused FTX and its founder of using customer funds for the investment. Despite FTX’s bankruptcy, Dave expects to have enough funds to execute its growth plan without raising additional equity capital.
Public Companies: Dave (null), FTX (null)
Private Companies:
Key People: Sam Bankman-Fried (Founder)
Factuality Level: 8
Justification: The article provides specific details about the deal between Dave and FTX, including the amount of the promissory note, the discounted price, and the approval process. It also mentions the accusations made by the SEC against FTX and the bankruptcy filing. However, it does not provide any additional sources or perspectives to verify the information presented.
Noise Level: 7
Justification: The article provides relevant information about Dave’s deal to buy back a convertible promissory note from FTX at a discounted price. It also mentions the involvement of the bankruptcy court and the U.S. Securities and Exchange Commission’s accusations against FTX. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It does not provide evidence or data to support its claims or explore the consequences of the deal on those who bear the risks. Additionally, it briefly mentions FTX’s bankruptcy and its efforts to recover funds without providing further context or explanation.
Financial Relevance: Yes
Financial Markets Impacted: Cryptocurrency market, banking sector
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses a banking app, a cryptocurrency exchange, and a bankruptcy case. However, there is no mention of an extreme event or its impact.
www.marketwatch.com 
