Bankrupt cryptocurrency exchange FTX is making efforts to recover some customer funds that have allegedly been misused. The company on Wednesday filed a $460 million asset recovery motion on behalf of its shareholders.

Funds are expected to be retrieved modulo capitala Bahamas-based hedge fund that has raised around $475 million Alameda Researchof the investment division of FTX, during the year 2022, Bloomberg reported.

Previous reports indicate that the investment in Modulo Capital, led by its former CEO, was among FTX’s largest. Sam Bankman Fried.

The recent filing implies that SBF may have directly directed Alameda Research to make multiple investments in Modulo, with transactions beginning in May 2022.

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On June 16, a partnership was formed between Modulo and Alameda, under which Alameda remitted funds to Modulo in exchange for a 20 percent interest in Modulo’s Class A shares.

Founded in March 2022, Modulo Capital was led by three former executives of Jane Street, a New York-based firm where Bankman-Fried was previously employed.

Under the settlement agreement, Modulo has agreed to return $460 million to FTX, representing 97% of the total investment from the bankrupt exchange.

Modulo plans to pay $404 million in cash and relinquish its claim on $56 million in assets on crypto exchange FTX.

The settlement also affects Alameda, forfeiting all entitlements to Modulo shares.

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