FTX reportedly in talks to recoup $400M investment in Modulo Capital FTX reportedly in talks to recoup $400M investment in Modulo Capital
Following FTX's bankruptcy, SBF's $400 million investment in Modulo Capital was converted into cash and kept in an interest-bearing account at JPMorgan.
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Updated: Jul. 30, 2023 at 3:08 pm UTC
U. S. House Committee on Financial Services / Public Domain. Remixed by CryptoSlate
FTX management led by John Ray III is reportedly in talks with Modulo Capital founders to reclaim about $400 million that Sam Bankman-Fried invested in the hedge fund, New York Times reports.
Modulo Capital is a Bahamas-based hedge fund launched by former Jane Street traders Xiaoyun Zhang and Duncan Rheingans-Yoo. SBF reportedly invested about $400 million shortly before his empire collapsed.
Following FTX’s bankruptcy in November 2022, SBF’s investment in Modulo Capital was converted into cash and kept in an interest-bearing account at JPMorgan, sources close to the firm confirmed to NYT.
As part of the bankruptcy process, Modulo Capital was named as one of the firms to be probed for holding SBF’s investments.
However, the founders of Modulo Capital are reportedly negotiating with FTX to return the funds and be fried from the legal implications of their ties with SBF, NYT reported on Feb. 15.
If the $400 million Modulo Capital funds are fully recovered, FTX could be closer to raising about $8 billion needed to make its creditors whole. On Jan. 17, FTX lawyers disclosed that they had located about $5.5 billion of assets held in customers’ accounts across the bankrupt exchange.
FTX is reportedly looking to recover an additional $93 million from political donations, a $2.1 billion payment to Binance, $446 million in transfer to Voyager Capital, and $2 billion in insider loans.
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Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.