Reported Coindesk, the FTX estate has made progress in its ongoing bankruptcy case by filing a motion to recover $460 million in assets from hedge fund Modulo Capital. The recovery includes $404 million in cash, representing over 99% of Modulo's remaining assets.
Modulo Capital was seeded with $475 million by Alameda Research in 2022 and is headed by principals Xiaoyun “Lily” Zhang and Ducan Rhenigans-Yoo, both acquaintances of former FTX CEO Sam Bankman-Fried. The agreement was reached following constructive negotiations with Modulo and their principals, according to court filings.
The recovery of assets is expected to provide a significant boost to the FTX estate's efforts to compensate stakeholders. The recovery of assets from Modulo is likely to be a key development in the case. The terms of the settlement with Modulo will enable the FTX estate to return nearly all the value transferred to Modulo while avoiding the costs of litigation.
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