I'm afraid I have bad news for you
I have the same DAC and it has big problems with the more recent kernel versions. It seems a sort of firmware compatibility issue, as it was working flawlessly with older kernels. Now I'm using a custom recompiled kernel:
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Linux studio 3.12.19-2-ARCH #1 PREEMPT Thu May 22 15:35:00 UTC 2014 armv6l GNU/Linux
and, while it works better that the one shipped with 0.2-beta with almost every USB and I2S DAC I personally tried, it makes the Modi unusable (the sound is completely distorted).
So the possible solutions could be:
1) use a older kernel (sic)
2) try to update the Modi's firmware. I don't know if it's possible but
this tool could work to produce a fully working firmware. Sadly Schiit does not give support on Linux issues.