FTX’s new leadership is in talks to get back a $400 million investment in a hedge fund called Modulo Capital.
According to New York Times, before the bankruptcy of the FTX exchange, former executive Sam Bankman-Fried invested $400 million in a “hidden” hedge fund called Modula Capital. FTX’s new leadership team is currently looking for a way to get this money back.
Accordingly, Modulo Capital is a multi-strategic investment fund established in 2022 by two former traders at Jane Street. This is also where Sam Bankman-Fried and Former FTX.US President Brett Harrison worked and went to cooperate later. In addition, Modulo’s filings show that the fund is based in the Bahamas and operated from Albany, the same luxury apartment complex where Sam Bankman-Fried, FTX employees and investment fund Alameda Research reside.
At about the time FTX sinks deep into crisisthe investment in Modulo was converted to cash and deposited into a “earning account” at JPMorgan, which acted as a broker for the fund, handling stock transactions and futures contract.
New York Times revealed Modulo Capital is looking to settle some liability to return funds to FTX. According to the report, there were no signs of violations coming from the two fund founders.
Before, The US government has frozen up to $ 700 million in Bankman-Fried assets, according to court records. However, it’s not clear why prosecutors didn’t take into account the money Modulo Capital held at JPMorgan.
The FTX exchange has been looking for ways to add recovery assets to the previous $5.5 billion, including: sell “small value” properties; car and office equipment liquidation; “claiming back” donations from politicians; 4 subsidiaries with great value for sale;…Meanwhile, the dispute Gain ownership of $450 million in Robinhood stock no conclusion yet.