Summary:
• FTX company insiders, including Sam Bankman-Fried, have been served subpoenas by bankruptcy administrators as the firm’s new leadership tries to reclaim $400 million from a hedge fund investment.
• The funds were invested in a multistrategy hedge fund called Modulo Capital and converted into cash sitting in an interest-bearing account with JPMorgan.
• CoinDesk regulatory reporter Amitoj Singh weighs in on the latest FTX developments.
FTX Seeks to Reclaim $400M From a JPMorgan Account
New York Times reports that FTX’s new leadership is trying to claw back $400 million from a little-known hedge fund investment. This comes as FTX’s company insiders, including Sam Bankman-Fried, former Alameda CEO Caroline Ellison, Bankman-Fried’s father Joseph Bankman, Gary Wang and Nishad Singh have been served subpoenas by bankruptcy administrators. CoinDesk regulatory reporter Amitoj Singh weighs in on the latest FTX developments.
The Funds Invested in Modulo Capital
The funds were invested in a multistrategy hedge fund called Modulo Capital founded in 2022 by two former Jane Street traders and one developer. Around the time FTX collapsed, Modulo’s holdings were converted into cash and are stored in an interest-bearing account with JPMorgan which served as its prime broker handling its trading in stocks and stock futures.
Subpoenas Served By Administrators
FTX company insiders have been served subpoenas by bankruptcy administrators as it attempts to recover $400 million from the little known hedge fund investment. Company insiders include Sam Bankman-Fried, former Alameda CEO Caroline Ellison, Bankman-Fried’s father Joseph Bankman, Gary Wang and Nishad Singh who all received subpoenas from the administrators seeking information about their involvement with the failed exchange.
CoinDesk Regulatory Reporter Weighs In
CoinDesk regulatory reporter Amitoj Singh commented on the news regarding FTX’s attempts to retrieve $400 million from its investment into Modulo Capital. He notes that public filings show Modulo was based out of the Bahamas and operated from Albany which is also where Bankman Fried resided before his success within crypto industry began at Jane Street – a New York based proprietary trading firm where he worked prior to making it big within cryptocurrency space.