- FTX is seeking to get better $460 million for its stakeholders.
- Alameda Analysis invested $400 million into Modulo Capital in 2022.
On 22 March, the FTX property filed a movement to enter right into a settlement to get better $460 million in property for stakeholders.
The property are a clawback from a Bahamas-based hedge fund Modulo Capital, which acquired $475 million in seed capital from FTX’s sister buying and selling agency Alameda Analysis in 2022. This hedge fund was based final yr and headed by two acquaintances of former FTX CEO Sam Bankman-Fried “SBF,” Xiaoyun “Lily” Zhang and Ducan Rhenigans-Yoo.
In accordance with the submitting, the $460 million in recovered property represents over 99% of Modulo’s remaining property and consists of $404 million in money. Modulo would additionally waive any declare to $56 million in property held in FTX.com and FTX.US accounts. Alameda would additionally lose any declare to its shares in Modulo due to the settlement.
The settlement should nonetheless be accredited by U.S. Chapter Decide John Dorsey, who has scheduled a movement listening to for 12 April.
Alameda Analysis was stated to have invested round $400 million in Modulo Capital in 2022, making it considered one of FTX’s largest investments underneath SBF’s management.
Funding made underneath SBF’s course
FTX additional claimed that Alameda Analysis’s funding was made underneath the course of SBF. Alameda Analysis and Modulo Capital entered right into a restricted partnership settlement in June final yr during which the previous transferred funds to the latter in change for 20% possession of Modulo’s Class A shares.
The submitting talked about:
“The phrases of the Settlement present for the return of almost the entire worth transferred by the Alameda Debtors to the Modulo Entities whereas avoiding the time and expense of pursuing the Claims via litigation.”
Funds made to entities previous to the chapter submitting could also be eligible to be given again and redistributed to collectors in chapter proceedings. Whereas most unsecured collectors have a 90-day clawback interval, “insiders,” together with normal companions, as an alternative have a one-year interval.
FTX talked about in its newest presentation to collectors final week that claims in opposition to it had surpassed $11 billion, in comparison with solely $4.7 billion in property. However, it has a complete shortfall of almost $7 billion. Although this settlement of $460 million could be an enormous win for collectors, it nonetheless represents lower than 7% of the present shortfall.
