The restructuring team of FTX has settled with a Bahamas-based hedge fund, Modulo, and recovered over $400 million.
The bankruptcy team led by John J. Ray III has recovered $404 million from the hedge fund Modulo. According to a Reuters report, the disgraced founder Sam Bankman-Fried (SBF) acquired a stake in Modulo for $25 million and transferred $450 million to the hedge fund in 2022.
Modulo Will Give up $56m Claim
As a part of the settlement, Modulo will return the $404 million and give up its claim on $56 million stored at the FTX exchange. In return, the bankruptcy team will not take any further actions against Modulo’s management.
FTX will recover 97% of the funds sent to Modulo with this settlement.
FTX on Mission to Recover Funds
The FTX liquidators first announced recovering more than $1 billion in customers’ assets in December 2022. Later, in January, FTX’s lawyers revealed the recovery of $5 billion worth of assets. Furthermore, BeInCrypto reported that FTX affiliate Alameda Research sued crypto asset manager Grayscale on March 6 to claw back at least $250 million.
SBF was well-known for donating to charities or political causes using customers’ funds. Hence, the restructuring team has urged donation recipients to return funds, or they might commence legal actions.
In contrast, the liquidators also had their shares of hitches while recovering assets. The liquidation team was liquidated and lost $72,000 while closing a position on the decentralized finance (DeFi) platform Aave.
The FTX lawyers and accountants charged $40 million for one month’s work. And John Ray III charged $300,000 for the month of February alone.
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