$500M Seized from SBF as FTX Handlers Investigate $400M Modulo Investment

• Sam Bankman-Fried (SBF) invested a total of $400 million in Modulo Capital in the third and fourth quarters of 2022.
• SBF had a romantic relationship with one of the founders of Modulo Capital, Xiaoyun „Lily“ Zhang.
• The new handlers of FTX have seized over $500 million from SBF so far as they search for assets that can be used to reimburse customers.

In March 2022, Modulo Capital, a trading firm, was launched. Not long after, the embattled ex-FTX CEO, Sam Bankman-Fried (SBF), invested a total of $400 million in the company. According to a New York Times report, two large sums were sent to Modulo Capital from Alameda Research in the third and fourth quarters of 2022, totaling the said amount.

The Financial Times also revealed that one of the founders of Modulo Capital, Xiaoyun „Lily“ Zhang, was romantically involved with SBF. The two had worked together at Jane Street Capital for around a decade, as SBF had been employed there in the early days of his career. The other co-founder, Duncan Rheingans-Yoo, had recently graduated from Havard just two years prior to the said investment.

As a result of such details coming to light, the new handlers of FTX are searching for assets that can be used to reimburse customers. To date, they have seized over $500 million from SBF, as they continue their search for additional funds.

Given the circumstances, it is still unclear as to whether SBF’s relationship with Zhang had any role in the investment of $400 million. However, the fact remains that the new handlers of FTX will continue to investigate the matter in order to ensure that customers receive the necessary reimbursement.