Sam Bankman-Fried Donated $400 Million to Obscure Crypto Trading Company

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Sam Bankman-Fried sent $400 million to Modulo Capital, an obscure crypto trading firm. One of the founders was romantically involved with Bankman-Fried, according to The New York Times. Another, according to the Times, was just two years out of college. LoadingSomething is being loaded.

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According to the New York Times, the founders of an obscure crypto-trading firm that received $400 million from Sam Bankman-Fried had close ties to the founder of FTX.

Modulo Capital was founded in March 2022, before receiving one of the biggest investments from Bankman-Fried and attracting the attention of investigators.

A spreadsheet shared by the Financial Times in December 2022 showed that Alameda Research, the trading company co-founded by Bankman-Fried, invested two separate sums in Modulo $250 million and $150 million.

The $400 million was paid out in the third and fourth quarters of 2022, documents from FTX bankruptcy attorneys reviewed by Insider show.

One of Modulo’s founders, Xiaoyun “Lily” Zhang, was romantically involved with Bankman-Fried, according to four people familiar with their relationship who spoke to The Times.

Its co-founder, Duncan Rheingans-Yoo, had graduated from Harvard only two years before SBF’s investment, the Times added.

CoinDesk first reported that the founders of Modulo worked at Jane Street Capital, the trading firm where Bankman-Fried began his career, but did not release their identities.

Zhang spent a decade at Jane Street, three of which coincided with SBF’s tenure, while Rheingans-Yoo joined in 2020, according to the Times.

Modulo operated out of the Albany Resort, the same luxury resort where SBF lived, according to CoinDesk. Bankman-Fried lived in a $30 million penthouse at the resort, but other FTX employees stayed in company-rented condos or villas.

Court documents reviewed by Insider show FTX spent $5.8 million at the Albany in the nine months through September 2022. In 2021, one of the station’s founders told Fortune that in peak season , it could cost up to $60,000 a night to stay there.

Lawyers for FTX’s new management are currently looking for assets that could be used to repay bankrupt exchange clients.

Federal prosecutors have already seized more than $500 million from Bankman-Fried, including $50 million kept in the tiny Farmington State Bank, but they are still looking for more.

Modulo’s founders have not been charged with any wrongdoing, but recently hired a criminal defense attorney who is a former CFTC enforcement director, The Times reported.

Representatives for Modulo and Bankman-Fried did not respond to Insider’s request for comment.

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