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.

FTX is settling with Modulo Capital for $460 million.

First big "clawback". pic.twitter.com/JNHn2bhNLb

— FTX 2.0pium (FTX Creditor) (@AFTXcreditor) March 22, 2023