FTX Seeks To Claw Back Four-Sixty Million From Bankman-Fried-Backed BC Firm

FTX Debtors

While the funds only represent a small portion of the assets held by FTX, the settlement will help the firms avoid the costly legal battles. The bankrupt crypto exchange is currently trying to recover 460mn USDs of their alleged misappropriate customer funds from Modulo Capital, a venture capital firm that got a great investment from Alameda Research in the previous year.

In the March 22 filing, the FTX has claimed that this investment from the Alamada Research was directed by bankman-fried. Alameda invested 475mn USD in Modulo in last year. On 16th June, Alameda entered in a limited time partnership agreement with the Modulo. As per this filing, this resulted in Alameda transferring the mentioned funds to Modulo for twenty percent of the Class A shares of the company.

FTX Tries To Claw Back 460million Dollars From Bankman-Fried

In the proceedings of bankruptcy, the payments made to different entities before the filing of bankruptcy might just be perfect to redistribute them among the creditors. While this claw back period is only ninety days for the unsecured creditors.

As per the new settlement between Modulo and FTX, Modulo is now ready to pay 404mn USDs in cash and will give up their claim to the 56mn USD worth assets on the crypto exchange of FTX. This settlement will result in Alameda losing their claim to the shares of Modulo as well.

Modulo started back in March 2022 by three of Jane Street’s former executives. This is a New York-based firm that was the former employer of both Bankman-Fried and Caroline Ellison, the former Alameda CEO.

Some people are even theorizing Bankman-Fried’s love interest Xiayun Zhang is the main reason for his motivation to invest in a VC firm.