Infamously bankrupt crypto exchange FTX will recover over $400 million in cash that former CEO Sam Bankman-Fried invested via Alameda Research into Bahamas-based hedge fund Modulo Capital back in 2022.
According to a filing at a bankruptcy court in Delaware seen by Reuters on Wednesday, Modulo will repay $404 million in cash and return $56 million worth of assets it held with FTX. After filing for bankruptcy back in November, the crypto exchange’s new CEO John Ray said the first order of business is to recoup FTX customers’ investments.
SBF’s affiliated hedge fund Alameda Research transferred a total of $475 million to Modulo back in spring 2022, during when FTX was undergoing significant losses and teetering on the edge of bankruptcy, the court filings show. More specifically, SBF bought a $25 million stake in Modulo, and made a $450 million investment into a fund managed by Modulo. The latest agreement will recoup about 97% of those investments, which means Modulo will be left with about 1% in remaining assets.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.