FTX seeks to claw back $460M from Bankman-Fried-backed VC firm

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FTX seeks to claw back $460M from Bankman-Fried-backed VC firm
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.FTX_Official is continuing to go after missing funds, with $460 million to be recovered from VC firm Modulo Capital, under a proposed bankruptcy settlement.

in a series of transfers beginning in May 2022, according to the filing.

On June 16, Alameda entered into a limited partnership agreement with Modulo, according to the filing, which resulted in Alameda transferring the aforementioned funds to Modulo in exchange for ownership of 20% of Modulo’s Class A shares. In bankruptcy proceedings, payments made to entities prior to the bankruptcy filing may be eligible to be clawed back and redistributed to creditors. While the claw-back period is 90 days for most unsecured creditors, it is one year for “insiders,” a term that includes general partners.

As per the settlement agreement, Modulo has agreed to repay $404 million in cash and will give up its claim to $56 million worth of assets held on FTX’s crypto exchange, representing nearly 97% of FTX’s initial investment.

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