On Wednesday, the FTX bankruptcy estate filed a motion for a settlement that would recover $460 million in assets for stakeholders, representing a significant win in the ongoing bankruptcy case. The assets are a clawback from Modulo Capital, a hedge fund based in the Bahamas that received $475 million in seed capital from Alameda Research in 2022.
The settlement was reached after constructive negotiations with Modulo and its principals, and the recovered assets include $404 million of cash and a relinquishment of any claim on $56 million in assets held in accounts at FTX.com and FTX.US. The terms of the agreement ensure that the majority of the value transferred to Modulo by Alameda will be returned without the need for litigation. CoinDesk previously reported that Modulo Capital was founded by former traders of Jane Street, where former FTX CEO Sam Bankman-Fried also worked before founding Alameda Research.