FTX has reached a financial agreement with Modulo Capital, an affiliate of Sam Bankman-Fried’s empire, to recover $460 million that was originally transferred by Alameda Research. These funds are in addition to the $5 billion already raised by FTX to reimburse its customers.
FTX continues to raise money
The new management of FTXchaired by John Ray III, agreed on a financial agreement with the hedge fund Modulo Capital, a company affiliated with the empire of Sam Bankman-Fried. The agreement, which must be finalized by the bankruptcy court judge, will allow FTX to get their hands on $460 million.
In positive news, these funds come on top of the 5 billion dollars already recovered by FTX in order to reimburse injured customers of the cryptocurrency exchange.
The agreement, concluded following constructive negotiations with Modulo and its management will allow FTX to recover almost all of the cash held by its subsidiary, which was initially transferred by Alameda Research as seed capital in 2022.
This agreement will allow the 2 entities to avoid endless legal disputes, and will also allow Modulo Capital to continue its activities independently of FTX.
Regarding the sum that should be recovered by FTX, $404 million should be paid to it in the form of cash, and Modulo has also agreed to waive claiming $56 million from the exchange in order to continue its activities on its side.
The funds transferred to Modulo Capital in 2022 had been issued by order of Sam Bankman-Fried, and is one of FTX’s largest investmentsyet intended for a company hitherto unknown to the general public.
According to a March 17 FTX management statement, the company needs to raise more than $11 billion if it wants to reimburse all of its customers.
Sam Bankman-Fried, for his part, recently filed a request in court to have his defense costs reimbursed with exchange funds. Funds which, of course, are initially intended to reimburse the clients to whom he lied.
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Source: Bloomberg
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