The bankrupt password trading center FTX is looking to recover $460 million from Modulo Capital, a venture capital firm suspected of embezzling user assets, which won a lucrative investment from Alameda Research last year.

As previously reported, it is understood that Alameda Research, a sister trading company of FTX, invested about $400m in Modulo in 2022, which is one of the major investments made by FTX under SamBankman-Fry.

In a filing on March 22nd, FTX claimed that Alameda's investment in the Alameda Research Center was aimed at Bankman-Fry, and Alameda gradually invested $475 million to Modulo from May 2022 and made a series of transfers.

According to the filing, Alameda signed a limited partnership agreement with Moduro on June 16, and Alameda transferred these assets to Moduro in exchange for 20% of Moduro's rights to use sector A shares.

In the bankruptcy system, accounts collected from the entity line before the bankruptcy application is processed are likely to have the right to be recovered and distributed to creditors. Although the recovery period for most unsecured creditors is 90 days, the recall period for "insiders" is one year, a technical term that includes general partnerships.

According to the settlement, Modulo has agreed to repay $404 million in cash and equates the right to use $56 million worth of property held by FTX login password trading to nearly 97 per cent of FTX's original investment.

This mediation will also result in the loss of Alameda and the right to use all Modulo shares.

Modulo Capital was founded in March 2022 by three former management of Jane Street, a New York-based company that hired Bankerman Fried and Caroline Ellison, the former CEO of Alameda.

It is reported that Bankman-Fried is not so much that Zhang Xiaoyun, one of the founders, has feelings, which some people think is his motivation to promote investment in this unknown venture capital firm.

The transfer also needs to be confirmed by Robert Dorsey, the foreign bankruptcy presiding judge, and the resolution hearing system is scheduled to be held on April 12.

In its latest data submitted to creditors on March 17th, FTX stressed that it had more than $11 billion in debt and only $4.7 billion in assets, resulting in a cumulative vacancy of nearly $7 billion. Thus, while the $460 million settlement would be a huge victory for creditors, it still accounts for less than 7 per cent of the vacancy at this stage.