FTX proposes to recover $460 million from Modulo Capital’s hedge fund

According to reports, FTX has proposed a motion to reach a settlement agreement to recover $460 million in assets for stakeholders. Alameda Research invested $400 million in Modulo Capital in 2022. According to the filing documents, the recovered assets of $460 million accounted for over 99% of the remaining assets of Modulo, including $404 million in cash. Modulo will also waive any claims for the $56 million assets held in FTX.com and FTX.US accounts. As a result of the settlement, Alameda will also lose any claims for its stake in Modulo.

Interpretation of this information:

The message reports that FTX has suggested a motion to reach a settlement agreement in order to recover $460 million in assets for stakeholders. The assets to be recovered include $404 million in cash, which accounts for over 99% of Modulo Capital’s remaining assets. As part of the agreement, Modulo will waive any claims for the $56 million assets held in FTX accounts, and Alameda Research will lose its stake in Modulo.

The proposal by FTX is significant because it suggests a possible resolution to the issue of recovering assets for stakeholders in Modulo Capital. The fact that the recovered assets account for over 99% of Modulo’s remaining assets indicates that this is a significant amount of money that had been tied up in the company. The waiving of claims by Modulo for assets held in FTX accounts is also noteworthy, as it suggests a willingness to cooperate with FTX in order to reach a settlement agreement.

The loss of Alameda Research’s stake in Modulo is also noteworthy, as it suggests that the settlement may not be entirely favorable to all stakeholders. It is unclear what Alameda Research’s position on this settlement is, but the loss of its stake in Modulo indicates that it may not be entirely satisfied with the outcome.

Overall, the proposal by FTX to reach a settlement agreement to recover $460 million in assets for stakeholders in Modulo Capital is significant, as it suggests a possible resolution to this ongoing issue. The fact that the proposal includes the waiving of claims by Modulo for assets held in FTX accounts indicates a willingness to cooperate, while the loss of Alameda Research’s stake in Modulo suggests that the settlement may not be entirely favorable to all stakeholders.