Troubled hedge fund Alameda Research will sell its stake in Sequoia Capital to Abu Dhabi's wealth fund, owned by the government of Abu Dhabi.
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According to court documents, Alameda is set to sell its stake in Sequoia worth of $45 million in cash to Al Nawwar Investments RSC Limited. However, the deal is yet to be approved by Delaware bankruptcy judge John Dorsey. It is assumed the deal would close by April 2023.
Alameda bought $100 million worth of Sequoia's interest in March 2022. To date, around $50 million of that commitment had been called up by Sequoia for investment in various portfolio companies.
Crypto exchange FTX went bankrupt in November 2022 due to failed trading strategies, including commingling funds and using customer cash for doubtful deals with the help of Alameda. According to bankruptcy filings, Alameda owes over $370 million to the now-bankrupt Voyager Digital and $4.6 million to Amazon Web Services.
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