Every other revelation within the FTX saga has market participants asking extra questions – What is Modulo Capital, and why did Bankman-Fried ship the small-known crypto firm $400 million?

What Came about: Veteran FTX CEO Sam Bankman-Fried despatched $400 million to Modulo Capital almost today old to the collapse of his crypto empire, per a epic from The New York Instances.

Modulo is now at the center of a federal investigation into Bankman-Fried’s dealings, with prosecutors attempting into the probability that he mature FTX’s customer funds to make investments within the firm.

Ties to SBF: Bankman-Fried’s investment into Modulo used to be one in all the single-biggest he ever made, and has lawmakers and onlookers questioning why he would assign this form of considerable quantity correct into a firm with small to no public presence.

In retaining with the NYT, one in all Modulo’s founders Duncan Rheingans-Yoo used to be simplest two years out of college. Rheingans-Yoo’s enterprise partner Xiaoyun Zhang or “Lily” used to be a feeble Wall Motorway seller who used to be allegedly romantically alive to with Bankman-Fried, acknowledged four other folks with records of the sphere.

Zhang also worked at trading firm Jane Motorway across the same time as Bankman-Fried. This isn’t the predominant time we’ve heard of Bankman-Fried’s alleged romantic involvement with feeble colleagues that later became into enterprise companions. Alameda CEO Caroline Ellison, who used to be acknowledged to occupy been in a relationship with Bankman-Fried, has now testified against him.

Where Is the Money Now? A assortment of connected events are attempting to yell the funds despatched to Modulo – particularly FTX’s liquidators who flagged the Modulo transaction in a Jan. 17 presentation to creditors.

Authorities within the Bahamas flagged the transaction at the time of Bankman-Fried’s arrest final year, claiming his doubtless receive entry to to the funds poses a flight menace and thus he should composed now not be granted bail.

It is miles unclear how grand of this money composed remains with Modulo Capital at the time of writing. Folk conversant in the firm’s operations notify that it has since ceased all operations, which incidentally occupy been conducted from Albany – the same luxurious rental that Bankman-Fried and his inner circle stayed in.

None of Modulo’s founders occupy been accused of any wrongdoing, but they’ve employed prison protection attorney and feeble director of enforcement for the CFTC Aitan Goelman to signify them.