Bankman-Fried-Backed Vc Firm Seeks To Claw Back $460m From FTX
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Alameda Research injects $400M into Modulo to support its new venture
FTX’s sister trading concern Alameda Research is perceived to have put in somewhat $400 in one of the biggest ventures endorsed by FTX under SamBankman-Fried’s leadership. Alameda and Modulo signed a limited partnership agreement as a result of which Alameda gave Modulo the funds in exchange for 20 percent ownership of Modulo's Class A shares.
FTX in bankruptcy talks to claw back more than $404 million from 'insiders'
The payment made to entities foremost to the bankruptcy petition may be eligible for redistribution to creditors in bankruptcy proceedings. While the clawback time frame is 90 days for most unstable lenders, it is one year for "insiders," a term that incorporates general accomplices. In accordance with the settlement agreement Modulo has consented to repay $404 million in cash and will give a claim amounting to $56 million worth of resources hung on FTX's crypto trade, addressing almost 97% of FTX's underlying venture.
Three former executives from Jane Street, a New York-based company that employed Bankman-Fried and former Alameda CEO Caroline Ellison founded Modulo Capital in the month of March 2022. The deal will still need to be confirmed by United States Bankruptcy Judge John Dorsey, with a motion hearing set for April 12.