FTX, the bankrupt cryptocurrency exchange, has recovered more than $400 million in cash from hedge fund Modulo Capital, according to a Reuters report.

According to court documents filed on Wednesday, this deal marks a significant milestone in the ongoing legal battle over funds that were sent to Modulo in 2022 by FTX companies.

Under the settlement agreement, Modulo Capital has agreed to pay $404 million in cash and relinquish its claim to $56 million in assets held on FTX's crypto exchange. This move will enable FTX to pull back 97% of the money that it sent to the hedge fund last year.

The filing made in the U.S. bankruptcy court in Delaware reveals that the settlement recovers most of the payments that were sent to Modulo and takes 99% of its remaining assets. FTX's successful recovery of the funds will come as a relief to the company and its stakeholders who have been embroiled in a complex legal battle over the funds.

In November, 2022 FTX submitted a filing for bankruptcy protection, citing its inability to fully reimburse customers who had deposited funds onto its exchange.