On March 22, the FTX team agreed to start the recovery of $460 million invested by Sam Bankman Fried in a venture capital Modulo Group. The funds were wired by the FTX affiliate company Alameda research in 2022. Based on the FTX report, the team from Alameda research confessed that SamBankman-Fried approved the transfer.
Initially, the Alameda team had closed a partnership deal with Modulo to pursue new opportunities in the crypto world. Per a partnership agreement, the Alameda team was required to reimburse $460 million to acquire 20% Modulo ownership of Class A shares.
Modulo Claw Back Conditions
In the current FTX bankruptcy proceedings, the venture capital should return the assets issued by the Alameda gorup before the bankruptcy filing. The execution of claw back process takes three months for unsecured creditors and 12 months for insiders such as the general partners.
A statement from the Modulo team revealed that the VC had agreed to settle $404 million cash. For the remaining assets, which translates to $56 million, Modulo plans to waive the claims of the assets that are still stuck at FTX. Based on the settlement terms, Alameda might lose a measurable share to Modulo.
A recent report from the FTX team revealed that total claims amounted to more than $11 million, and the total asset is worth $7 million. After the $ 460 million asset recovery, the FTX will be in a position to settle the creditor outstanding balances.
The Modulo group was established in 2022 by Sam Bankman Fried in collaboration with two crypto investors Ducan Rhenigans-Yoo and Xiaoyun Zhang.
