Sam Bankman-Fried Funds Modulo Capital To The Tune Of $400 Million
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According to media reports, Sam Bankman-Fried (SBF), a disgraced former FTX CEO, sent $400 million to Modulo Capital, a little-known cryptocurrency hedge fund run by a former Jane Street trader. Modulo was founded in March 2022 before being the recipient of one of SBF’s largest investments while he was in charge of FTX.
⏰ Modulo Capital, the Hedge Fund that got $400 million from Sam Bankman-Fried (SBF) operated out of the same Bahamian Albany compound where Mr. Bankman-Fried lived.
It had no track record or public profile! @nytimes report #SBF | https://t.co/RhnlZFIwzC pic.twitter.com/YBTHS0hBsn
— NewBie Truth (@Newbie_Truth) January 24, 2023
According to reports, the company was based out of the Albany Resort, the same opulent building where SBF resided. Other FTX employees stayed in condos or villas rented by the company, while Bankman-Fried resided in a $30 million penthouse at the resort.
Xiaoyun Zhang & Bankman-Fried Relationship
According to the NYT, Duncan Rheingans-Yoo, one of the founders of Modulo, had just completed his undergraduate studies two years prior to founding the business. SBF had dated Rheingans-business partner Yoo’s partner Xiaoyun Zhang, also known as Lily, in the past. She once had a romantic relationship with Bankman-Fried.
Bankman-Fried's girlfriend? Xiaoyun "Lily" Zhang, used to be romantically involved with Bankman-Fried, according to four people familiar with their relationship. her partner, Duncan Rheingans-Yoo, had only graduated from Harvard two years before SBF's investment. That's textbook
— 9:29 (@GuitarSunCat) January 25, 2023
According to a spreadsheet posted by the Financial Times in December 2022, Bankman-other Fried’s company, Alameda Research, invested $250 million and $150 million in Modulo Capital in the third and fourth quarters of 2022.
Sam Bankman-Fried: Investment Raised Questions
SBF’s decision to invest millions in a trading start-up while his companies were losing money has attracted the attention of law enforcement officials, according to reports. Thereby, the federal prosecutors in Manhattan were looking into SBF’s Modulo investment to see if it was made with illegal proceeds.
"Federal prosecutors in Manhattan investigating Mr. Bankman-Fried believe the Modulo investment was made using criminal proceeds — misappropriated money that FTX customers had deposited with the exchange, said a person briefed on the investigation." https://t.co/qea9VCABpz pic.twitter.com/vares6PhjD
— Garance Franke-Ruta (@thegarance) January 24, 2023
In the meantime, Modulo’s assets are being investigated by legal counsel for the new leadership of FTX in an effort to recover the billions of dollars that were lost when the cryptocurrency exchange failed.
Federal investigators have already taken over $500 million from Bankman-Fried, including $50 million held in the tiny Farmington State Bank, but they are still looking for more.
CRIMINAL CONTRASTS: Detained Man Carrasco Pleads Guilty to 108-135 Month Prison Sentence For Box Of Drugs Moved From Car to Car for $500 – same day Sam Bankman-Fried Was Freed on $250 Million Bond for FTX Fraud – Inner City Press story: https://t.co/1gDcCtdE8c pic.twitter.com/NdQpsz1rj0
— Inner City Press (@innercitypress) December 22, 2022
Duncan Rheingans-Yoo and Xiaoyun Zhang have hired Aitan Goelman, a criminal defense lawyer and former director of enforcement for the Commodity Futures Trading Commission, despite the fact that neither of them has been charged with a crime (CFTC).