FTX Recovers Over $400mln Transferred to Modulo Capital in Bankruptcy Settlement

As per the settlement, FTX has managed to retrieve most of the payments made to Modulo and 99% of the remaining assets held by the hedge fund.

As part of the settlement, FTX and Alameda Research have agreed to waive their right to any ownership of Modulo. Additionally, FTX has promised not to take any further legal action against Modulo or its principals, Xiaoyun Zhang and Duncan Rheingans-Yoo, regarding the payments made in 2022, according to the court filings.

Requests for comment from FTX, Bankman-Fried, and Modulo Capital have not been answered, according to Reuters.

It is worth noting that FTX has already recovered over $5 billion as it seeks to reimburse customers affected by the cryptocurrency exchange's bankruptcy.

Last week, FTX announced that it was looking into transactions worth over $3.2 billion that were transferred from the company to its founders and key employees through payments and loans.

Bankman-Fried has been accused of using billions of dollars in FTX customer funds to cover losses at Alameda Research and illegally donating tens of millions of dollars to gain political influence in Washington, D.C. Despite the charges, he has denied any wrongdoing and is currently fighting to avoid being imprisoned until his scheduled fraud trial on October 2.