• The Financial Times exposed that Sam Bankman-Fried (SBF), the former CEO of FTX, invested $400 million in Modulo Capital in the third and fourth quarters of 2022.
• It was revealed that SBF had a romantic relationship with Xiaoyun „Lily“ Zhang, one of the co-founders of Modulo, and the two had worked together at Jane Street Capital.
• The new handlers of FTX have seized over $500 million from SBF as they search for more assets that can be used to reimburse customers.

Sam Bankman-Fried, the former CEO of FTX, has been making headlines in the past few months. It all started in December 2022, when the Financial Times released a spreadsheet that revealed two large payments had been made to Modulo Capital, a trading firm launched in March of the same year. The spreadsheet exposed that a total of $400 million had been sent to Modulo in the third and fourth quarters of 2022.

This raised questions about the source of the funds and the identity of the investors. It soon became clear that the money had come from SBF, and he had invested the sum without the knowledge or approval of FTX. This caused a huge uproar, and SBF quickly became the center of attention.

Further investigations revealed that SBF had a romantic relationship with one of the founders of Modulo, Xiaoyun „Lily“ Zhang. Zhang had worked at Jane Street Capital for about a decade, and SBF had been with the firm during the early days of his career. The other co-founder, Duncan Rheingans-Yoo, had only graduated from Havard two years before the said investment was made.

The new handlers of FTX are now searching for assets that can be used to reimburse customers. They have already seized over $500 million from SBF, and the search for more funds continues. It remains to be seen what other details will be revealed in the coming days, and how SBF will face the consequences of his actions.