A look at Sam Bankman-Fried's $400M investment in obscure hedge fund Modulo, shortly before FTX collapsed; Modulo's executives had close ties to SBF and FTX
After the collapse of FTX, prosecutors and lawyers have scrutinized its discredited founder's huge investment in Modulo Capital. Tweets: @niubi , @niubi , @jessicakmathews , @macrocephalopod , @smtuffy , @hsakatrades , @flitteronfraud , @hsakatrades , @smtuffy , @loopifyyy , @hsakatrades , and @mattgoldstein26 Tweets: Bill Bishop / @niubi : “examining whether used FTX's customer funds to invest in little-known firm” He/Alameda invested in a lot of funds. Did they use customer funds for all those deals, and are regulators crawling over all those funds, or will be soon? what if longer than 90 days before bankruptcy? https://twitter.com/... Bill Bishop / @niubi : The Unknown Hedge Fund That Got $400 Million From Sam Bankman-Fried https://www.nytimes.com/... 1 founder, Duncan Rheingans-Yoo, was 2 years out of college. His biz partner, Xiaoyun Zhang..was a former Wall Street trader who had previously been romantically involved w Bankman-Fried Jessica Mathews / @jessicakmathews : Modulo is emerging as a crucial part of the investigation by federal prosecutors into Mr. Bankman-Fried and his once giant cryptocurrency exchange. https://www.nytimes.com/... @macrocephalopod : It's called Modulo Capital because the AUM periodically resets to zero https://www.nytimes.com/... Sean Tuffy / @smtuffy : Also, the FTX Foundation is rotten to its core and we really should be looking harder at it https://twitter.com/... @hsakatrades : Ah so that's why Caroline flipped, she was no longer the main grippy. https://twitter.com/... Emily Flitter / @flitteronfraud : A look at Modulo Capital, the hedge fund that @SBF_FTX put $400 million into as his own empire was crumbling, by @yaffebellany, @MattGoldstein26 & Royston Jones Jr. Modulo is run by 20-somethings, one of whom is SBF's ex. https://www.nytimes.com/... @hsakatrades : Modulo Capital: The (slush) fund that received $400m of customers money. TL;DR: Founders part of Jane St/MIT polycule, Goblin was involved with one (Xiaoyun Zhang), Operated out of Albany (probably adjacent unit to FTX), since shut down and lawyered up https://archive.is/... Sean Tuffy / @smtuffy : Further details on how SBF used a “hedge fund” run by his friends and former Jane Streeters (natch) to launder/embezzle money https://www.nytimes.com/... @loopifyyy : TIL that Sam Bankman Fried has a brother https://twitter.com/... @hsakatrades : Of course there's an EA element to it too. FTX hires one of the Modulo co founders brothers for FTX foundation. FTX foundation works closely with Guarding Against Panedemics, an orgainsation that was run by Sams brother, Gabe(??), and bankrolled by FTX. https://twitter.com/... Matthew Goldstein / @mattgoldstein26 : Sam Bankman-Fried's tangled web with the founders of a little known hedge fund startup. Story via @yaffebellany me and Royston Jones in the Bahamas https://www.nytimes.com/...