FTX to Recover $400+ Million From This Hedge Fund: Why?
FTX has reached a deal to recover more than $400 million from Modulo Capital. The hedge fund received about $475 million last year, as seed funding from Alameda Research before FTX collapsed. According to a recent court filing, the Bahamas-based hedge fund has agreed to pay $404 million in cash. Additionally, it has consented to give up its claim of $56 million in assets held in its accounts on FTX’s crypto exchange. Thus, the deal is worth $460 million in all. Specifically, the filing noted,
“The Agreement is in the best interests of the Debtors’ creditors because it promptly brings approximately $460 million into the Debtors’ estates without time-consuming and costly litigation. This settlement—including approximately $404 million in cash—returns more than 97% of the Alameda Transfers and 99% of the assets currently held by Modulo.“
Also Read: FTX Confirms $8.9B in Customer Funds are Missing
FTX, Alameda to give up ownership claims of Modulo
As part of the settlement, FTX and Alameda will give up their claim to any ownership of Modulo. Now, the agreement has to be approved by U.S. Bankruptcy Judge, John Dorsey. FTX contended, that the deal “should be swiftly consummated.”
Sam Bankman-Fried’s FTX filed for bankruptcy protection in November 2022. The exchange was not in a position to completely repay customers who had deposits on the platform. The company’s new CEO, John J. Ray III, has time and again asserted that his top priority is to recover assets to repay FTX clients.
Prior to this agreement, Alameda Research came to a $45 million cash deal agreement to sell its Sequoia Capital interest. The sell-pact is part of the company’s attempts to sell its assets in technology and crypto ventures to pay back creditors.
Also Read: FTX’s Alameda Enters Into $45M Deal To Sell Its Sequoia Interest
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