Skip to content Skip to sidebar Skip to footer

FTX seeks to recover $460M from Bankman-Fried-backed VC firm

FTX, a bankrupt cryptocurrency exchange, is attempting to recover $460 million in allegedly misused customer funds from Modulo Capital, a venture capital firm that received a substantial investment from Alameda Research in 2022.

Alameda Research, which is FTX’s sister trading firm, invested about $400 million in Modulo last year, according to previous reports. FTX claims that Alameda Research invested $475 million in Modulo in a series of transactions at the direction of Bankman-Fried, FTX’s leader. On June 16, Alameda and Modulo entered into a limited partnership agreement, resulting in Alameda transferring the funds to Modulo in exchange for a 20% stake in Modulo’s Class A shares.

In bankruptcy proceedings, payments made to entities prior to the bankruptcy filing may be eligible for clawback and redistribution to creditors. Modulo has agreed to repay $404 million in cash and relinquish its claim to $56 million worth of assets held on FTX’s crypto exchange, which represents almost all of FTX’s initial investment, according to the settlement agreement.

Be the first to know

Get the best of all crypto news updates coming from Nigeria, Kenya, SA, Ghana, and across Africa

Show CommentsClose Comments

Leave a comment