The interim management of bankrupt cryptocurrency exchange FTX has reached an agreement to recover more than $400 million from Bahamas-based hedge fund Modulo Capital. This is evidenced by court documents found by Reuters journalists.

Modulo agreed to pay $404 million and waive claims for $56 million in assets held on FTX. Thus, the exchange received 97% of the assets that FTX-related firms sent to the hedge fund for 2022.

Alameda Research sent Modulo $475 million starting in May 2022, when FTX was losing money and approaching bankruptcy, according to court documents. According to the documents, Alameda, at the behest of FTX founder Sam Bankman-Fried, paid $25 million to acquire a stake in Modulo and contributed $450 million to an investment fund managed by Modulo.

FTX and Alameda will relinquish ownership of Modulo as part of a settlement agreement. FTX also agreed to take no further action against Modulo or its executives.

FTX interim managers were only able to find $2.7 billion of the $11.6 billion that was supposed to remain in client accounts. Part of the amount could be attributed to Alameda Research, which borrowed $9.3 billion from customer accounts before the crash. It was recently revealed that the founders and key employees of the failing FTX received $3.2 billion in payments and loans, mostly from a subsidiary of Alameda Research.

FTX recently sued FTX Digital Markets and its Bahamian liquidators, alleging they are wrongfully claiming the assets of the cryptocurrency exchange.