Following “constructive negotiations,” Sam Bankman-Fried’s (SBF) bankrupt FTX has inked a deal to pull back more than $460 million in assets from Modulo Capital, the Bahamas-based hedge fund that received $475 million from Alameda Research back in 2022.
According to court documents filed on Wednesday, this represents 97% of all money that FTX companies sent to the fund and 99% of Modulo’s remaining assets. The filings specify that Modulo will pay $404 million in cash and relinquish $56 million in assets still on FTX’s crypto exchange.
Back in November, FTX said it couldn’t completely pay back clients with funds on its exchange but the company’s new CEO, John Ray, claims that reimbursing the firm’s clients is the number one priority.
As detailed in the filing, the deal would avoid the need for an expensive and potentially drawn-out legal battle to recover the funds. According to FTX, “…the compromises set forth in the Agreement are, in the aggregate, fair and equitable, fall well within the range of reasonableness, and satisfy each applicable Martin factor.”
The filings also claim that the deal would be in the best interests of all parties, due to the fact that SBF is “unlikely to be available to testify on issues relating to the Claims in the near term due to ongoing criminal proceedings.”