FTX Recovers $400 Million: Inside the Modulo Capital Deal
Bankrupt crypto exchange FTX Group has reached a significant agreement, poised to recover a substantial sum from a surprising source. Discover how FTX is set to recover over $400 million from hedge fund Modulo Capital, a move that offers a glimmer of hope for creditors amidst the ongoing bankruptcy proceedings.
FTX's Recovery Efforts Bear Fruit: $400 Million Deal Reached
The restructuring team of FTX has settled with a Bahamas-based hedge fund, Modulo, and recovered over $400 million. This marks a crucial step in FTX's efforts to recoup assets and compensate those affected by the exchange's collapse. Bankrupt crypto exchange FTX has reached a deal to recover more than $400 million in cash from hedge fund Modulo Capital, pulling back 97% of the money that FTX originally invested.
Modulo Capital: Why This Hedge Fund?
Why Modulo Capital? The bankruptcy team led by John J. Ray III (Reuters) has been meticulously tracing FTX's financial transactions. Their investigation led them to Modulo Capital, revealing significant fund flows that warranted recovery. Bankrupt crypto exchange FTX has reached a deal to recover more than $400 million in cash from hedge fund Modulo Capital, pulling back 97% of the money that FTX invested.
What This Means for FTX Creditors
This $400 million recovery from Modulo Capital represents a vital boost to the FTX estate. While the full extent of losses remains substantial, this recovery provides crucial liquidity, potentially increasing the funds available for distribution to creditors. The significant percentage recovered, 97%, highlights the effectiveness of the FTX bankruptcy team's efforts.
FTX's Long Road to Recovery: What's Next?
While the Modulo Capital deal is a significant win, the road to full recovery for FTX and its creditors remains long. Ongoing legal battles and investigations are crucial to maximizing asset recovery. Bankrupt crypto exchange FTX has reached a deal to recover more than $400 million in cash from hedge fund Modulo Capital, pulling back 97% of the money that FTX...