The FTX bankruptcy estate will recover a substantial amount from Modulo Capital – the “obscure crypto fund” that Sam Bankman-Fried funded. 

According to court documents seen by CoinDesk on Wednesday, FTX filed a motion to enter a settlement with Modulo Capital and recover $460 million in assets for stakeholders.

The clawback from Modulo followed “constructive negotiations” with members of the company, stated the filings. The amount represents 99% of Modulo’s assets, including a substantial amount of $404 million in cash.

Earlier this year, a leaked spreadsheet of FTX’s venture investments raised eyebrows, but the $400 million investment into the little-known hedge fund Modulo was a matter of particular interest among industry watchers. 

A closer look into the history of the firm revealed that it was founded in March 2022 by Duncan Rheingans-Yoo and Xiaoyun Zhang, or “Lily,” who had been romantically involved with Bankman-Fried and worked with him at Jane Street. Modulo also operated out of the same Bahamian compound where Bankman-Fried and his associates once resided. 

At the time, records indicated that Bankman-Fried had given a total of $400 million to Modulo through Alameda Research’s venture portfolio. Recent court documents show that the actual amount of funding received was closer to $475 million. 

“The terms of the Agreement provide for the return of nearly all of the value transferred by the Alameda Debtors to the Modulo Entities while avoiding the time and expense of pursuing the Claims through litigation,” stated the filing. 

Modulo has also agreed to relinquish any claim on the $56 million in assets it holds on and FTX.US.