Crypto Lender FTX Reaches Deal To Recover $400 Million From Hedge Fund
NDTV
Bahamas-based Modulo agreed to pay $404 million in cash and give up its claim to $56 million in assets held on FTX's crypto exchange.
Bankrupt crypto exchange FTX has reached a deal to recover more than $400 million in cash from hedge fund Modulo Capital, pulling back 97% of the money that FTX companies sent to the hedge fund in 2022, according to court documents filed on Wednesday.
Bahamas-based Modulo agreed to pay $404 million in cash and give up its claim to $56 million in assets held on FTX's crypto exchange, according to a filing in U.S. bankruptcy court in Delaware.
FTX filed for bankruptcy protection in November, saying it was unable to completely repay customers who had deposited funds on its exchange. FTX's new CEO, John Ray, has said his top priority was recovering assets to repay FTX customers.
FTX's affiliated hedge fund Alameda Research sent $475 million to Modulo in a series of transfers beginning in May 2022, a time when FTX was losing money and heading toward bankruptcy, according to the court filings.
