SBF Gave $400M to Modulo Capital Cofounded by Lover

SBF had a romantic relationship with the founder of the firm to whom he sent $400 million FTX funds.

NYTIMES: SBF invested $400 million in Modulo Capital in the third and fourth quarters of 2022. Co-founder Xiaoyun Lily Zhang had a relationship with SBF and worked together at Jane Street Capital. https://t.co/3HVy618W8W

— Wu Blockchain (@WuBlockchain) January 25, 2023

A New York Times report shows that Modulo Capital, a trading firm launched in March 2022 received a total of $400 million from embattled ex-FTX CEO, Sam Bankman-Fried (SBF). SBF was also exposed to have had a close relationship with one of the founders of the company.

In December 2022, the Financial Times shared a spreadsheet that exposed two large sums that were paid to Modulo Capital by Alameda Research. In the third quarter of 2022, $250 million was sent to Modulo, while another $150 million was sent in the fourth quarter, totaling $400 million.

According to reports, one of the founders of Modulo Capital, Xiaoyun “Lily” Zhang, and SBF were involved in a romantic relationship. Zhang worked at Jane Street Capital for about a decade, coinciding with the period when SBF worked there too, in the early days of his career.

The other co-founder, Duncan Rheingans-Yoo was relatively fresh from school, having graduated from Havard just two years before the said investment was made.

Such details revealing SBF’s recklessness with funds are being dug up by the new handlers of FTX who are searching for assets that can be used to reimburse customers. Over $500 million has been seized from SBF so far, as the search for more funds continues.