Delaware Insolvent crypto exchange FTX is getting back more than $400 million from hedge fund Modulo Capital. Bahamas-based company Modulo has agreed to pay $404 million in cash and drop its claim on an additional $56 million in assets on the crypto exchange, according to a filing in the U.S. bankruptcy court in Delaware on Wednesday .
That equates to a roughly 97 percent repayment of all assets transferred from FTX to Modulo in 2022. FTX and Alameda waived their claims to any ownership interest in Modulo as part of the settlement. FTX also agreed not to take any further action against Modulo or its managing directors Xiaoyun Zhang and Duncan Rheingans-Yoo in connection with the 2022 payments.
FTX founder Sam Bankman-Fried has been accused of stealing billions of dollars in client funds to cover losses at his brokerage house, Alameda. Alameda had transferred a total of $475 million to Modulo in multiple remittances beginning in May 2022 – when FTX was already heading for bankruptcy – for a corporate equity interest and a mutual fund managed by Modulo. FTX filed for bankruptcy protection in November.
With the recovery of the assets, FTX customers are initially to be compensated. The bankrupt crypto exchange has already recovered more than $5 billion. FTX, Bankman-Fried and Modulo did not immediately respond to requests for comment.
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