Tuesday, May 28, 2024

FTX Seeks To Clawback SBF’s $400 Million Sitting In JPMorgan Chase


  • FTX’s legal professionals are negotiating to reclaim $400 million parked in an account at JP Morgan Chase. 
  • Sam Bankman-Fried had invested this cash right into a hedge fund known as Modulo Capital. 
  • Modulo’s founders wish to free themselves of authorized liabilities in change for the funds. 
  • Prosecutors, legal professionals, and investigators have been working to claw again billions of {dollars} spent by the bankrupt crypto change. 

The downfall of the Bahamas-based crypto change FTX final November triggered a race amongst chapter legal professionals, forensic investigators, and federal prosecutors to trace down billions of {dollars} that had been misplaced following the change’s implosion, along with the funds invested and spent by the change’s prime administration. The target was to claw again and get well the misplaced funds and make the shoppers and collectors entire. 

FTX’s $400 million invested in Modulo Capital

In response to a report by the New York Occasions, FTX’s chapter legal professionals have been capable of observe down $400 million of Sam Bankman-Fried’s funding portfolio sitting in an interest-bearing account at JPMorgan Chase. Bankman-Fried had invested this cash in Modulo Capital, a crypto hedge fund that operated out of the identical Bahamian compound the place the bankrupt change’s former founder lived. 

The almost half-billion-dollar funding caught the eye of investigators and prosecutors final month given the timing of the transaction. Modulo Capital reportedly obtained this funding shortly earlier than FTX collapsed. Following FTX’s collapse in November final 12 months, Modulo Capital’s holdings had been transformed into money. That cash has since been sitting in an account at JPMorgan, provided that the financial institution was the buying and selling agency’s major dealer. 

It’s unclear at the moment if Duncan Rheingans-Yoo and Xiaoyun Zhang, the hedge fund’s founders, had been concerned in any wrongdoing. Folks conversant in the matter revealed that the founders are negotiating a clearance from sure authorized liabilities in change for returning the funding. 

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