Modulo Capital in $400M FTX Talks
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An editor at Coincrop
16 Feb 2023 | 4 min read
ccording to reports, FTX is actively negotiating with SBF for the return of their $400 million investment in Modulo Capital. Upon bankruptcy filing from FTX, SBF's original sum was converted into liquid assets and safely stored away in an interest-bearing account at JPMorgan bank.
According to the New York Times, John Ray III and his team at FTX have been conversing with Modulo Capital's founders in an effort to recoup approximately $400 million that Sam Bankman-Fried placed into the hedge fund.
When Xiaoyun Zhang and Duncan Rheingans-Yoo, two former Jane Street traders, set up Modulo Capital in the Bahamas, SoftBank's SBF apparently put in around $400 million before their empire crumbled.
After FTX declared bankruptcy in late 2022, SBF's investment with Modulo Capital was handed over to JPMorgan and stored in an interest-bearing account - as verified by trustworthy sources near the firm.
During the bankruptcy proceedings, Modulo Capital was chosen as one of the organizations to be investigated for its management of SBF's investments.
According to a February 15th report from the New York Times, Modulo Capital's founders are in discussions with FTX to repay the funds and dissociate themselves from any legal ramifications relating to their affiliation with SBF.
If Modulo Capital is successful in recovering the full $400 million, FTX could find itself one step closer to attaining its goal of recouping approximately $8 billion for its creditors. On January 17th, attorneys representing FTX announced that they had discovered around $5.5 billion within accounts owned by clients on their insolvent platform.
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.
FTX is reportedly attempting to clawback $93 million from Political donations, including a staggering $2.1 billion payment to Binance, $446 million transfer to Voyager Capital, and $2 billion from in insider loans.
ChrisAn editor at Coincrop
Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.
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