According to a planned bankruptcy settlement made public Wednesday, FTX Group will recover around $404 million out of the $475 million that its discredited founder Sam Bankman-Fried reportedly moved to the investment company Modulo Capital.
The accord adds to the steadily expanding sum of money FTX has been attempting to collect since declaring bankruptcy last year.
According to the settlement, which was filed Wednesday afternoon in federal court in Wilmington, Delaware, Modulo Capital, controlled by Xiaoyun “Lily” Zhang and Duncan Rheingans-Yoo, received $475 million last year before FTX went bankrupt amid fraud claims.
According to FTX, Modulo has no additional funds with which to return the cash. As per the court records, the proposed deal avoids an expensive lawsuit in which Modulo would fight FTX for the money.
The arrangement is worth $460 million, according to FTX, because it includes $404 million in cash and requires Zhang and Rheingans-Yoo to dismiss $56 million in claims against the company. All that remains is the US Bankruptcy Judge John Dorsey to give a green signal and approve the agreement.
Also read: FTX Unveils Massive Shortfall With Holding Fraction of Assets Liquid
