FTX Estate Recovers $460M In Assets In Ongoing Bankruptcy Case
- FTX estate filed a motion to recover $460 million in assets from Modulo Capital, a hedge fund that received $475 million in seed capital from Alameda Research.
- Following constructive negotiations, the agreement with Modulo Capital is expected to recover over 99% of its remaining assets, including $404 million in cash.
- The recovered assets represent a significant clawback from the hedge fund and a major victory for the stakeholders in the ongoing bankruptcy case.
FTX estate filed a motion in court to recover $460 million in assets for the stakeholders, marking a significant breakthrough in the ongoing bankruptcy case, as per CoinDesk.
According to court filings, the FTX estate has filed a motion to recover $460 million in assets from Modulo Capital, a hedge fund based in the Bahamas that received $475 million in seed capital from Alameda Research in 2022. Modulo Capital was founded in early 2022 and is led by Xiaoyun “Lily” Zhang and Ducan Rhenigans-Yoo, both of whom are known to former FTX CEO Sam Bankman-Fried.
The agreement that followed after constructive negotiations with the Modulo Entities and their principals is expected to recover over 99% of Modulo’s remaining assets, with $460 million worth of assets up for recovery.
The recovered assets include $404 million in cash, and Modulo will no longer have any claim to the $56 million in assets held in accounts at FTX.com and FTX.US. The terms of the agreement enable the return of almost all of the value transferred by the Alameda Debtors to the Modulo Entities, avoiding the expense and time of pursuing the claims through litigation.
This development is expected to significantly impact the ongoing bankruptcy case and mark a major victory for the stakeholders. Furthermore, it is worth noting that Modulo Capital was a hedge fund founded by former traders of Jane Street, the company Bankman-Fried worked at before leaving to found Alameda Research. The recovered assets, in this case, represent a significant clawback from the hedge fund, and it will be interesting to see how this development shapes the future course of action for all parties involved.
Overall, this recent development has been positive, highlighting the importance of constructive negotiations in resolving complex legal cases. This settlement is expected to significantly impact the ongoing bankruptcy case, and it will be interesting to see how it plays out in the coming weeks and months.
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