BTC PULSE
No Result
View All Result
Play Now
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

FTX Sues Modulo Capital Over Alleged Improper Use of Client Funds

by Dan K
Mar 23, 2023 - 12:00 am
in Blockchain
Document highlighting the FTX bankruptcy filing details, showcasing key points in the reorganization plan.

Cryptocurrency exchange FTX has filed a lawsuit against venture capital company Modulo Capital seeking the recovery of $460 million in client monies that it claims were improperly taken. The move comes as FTX is undergoing bankruptcy proceedings, with payments made to entities prior to the filing potentially eligible for clawback and redistribution to creditors. Although both companies will avoid an expensive legal battle through the settlement, the monies only account for a small percentage of FTX’s total asset deficiency.

Modulo Capital was established in March 2022 by three executives who had previously worked at Jane Street, a New York-based company that had hired FTX CEO Sam Bankman-Fried and former Alameda CEO Caroline Ellison. Alameda Research, FTX’s sister trading business, invested around $400 million in Modulo last year, reportedly at the instruction of Bankman-Fried.

As part of the settlement, Modulo has agreed to pay back $404 million in cash and relinquish its claim to assets worth $56 million stored on FTX’s cryptocurrency exchange, which amounts to roughly 97% of FTX’s original investment. Alameda will also give up its claim to the Modulo shares it previously held. However, the agreement is still subject to approval by a United States bankruptcy judge, with a hearing scheduled for April 12.

Reports suggest that Bankman-Fried may have invested in Modulo due to a romantic relationship with one of the company’s founders, Xiaoyun “Lily” Zhang, though this has not been confirmed. Regardless, the settlement represents a significant financial hit for both FTX and Alameda Research. It remains to be seen how this will impact the cryptocurrency market more broadly, though it underscores the need for investors to exercise caution when dealing with untested ventures in the crypto space.

Tags: FTX
Dan K

Dan K

Dan K, the chief editor, is a visionary wordsmith, shaping narratives with finesse. His discerning eye for detail creates literary masterpieces.

Related Posts

Arthur Hayes speaking about Bitcoin as Japan’s new Prime Minister announces economic stimulus measures

Arthur Hayes Predicts $1M Bitcoin as Japan’s New PM Unveils Economic Stimulus

October 22, 2025

Arthur Hayes predicts Bitcoin could hit $1M as Japan’s new PM Sanae Takaichi launches economic stimulus, signaling potential...

blockchain

Bolivia’s President-Elect Rodrigo Paz Turns to Blockchain to Fight Corruption

October 20, 2025

Bolivia’s new president Rodrigo Paz plans to use blockchain in public procurement and crypto asset declarations as part...

Metaplanet and Bitcoin Magazine logos, symbolizing their new partnership to expand operations in Japan.

Japan Moves Toward Allowing Banks to Buy Bitcoin Under New Regulatory Framework

October 19, 2025

Japan’s regulators are reviewing changes that could let banks buy and hold Bitcoin, signaling a major shift in...

24H HOLD token price chart showing 35% surge despite market pullback

Crypto markets surge as Trump confirms October 31 summit with Xi Jinping

October 19, 2025

Crypto markets rebound after Trump confirms October 31 summit with Xi Jinping, easing US-China tensions and sparking optimism...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • About Us
  • Advertise
  • BTC-PULSE
  • Contact Us
  • Events
  • Privacy Policy
  • Sitemap
  • Terms of Service