FTX case: Alameda would have lent $ 400 million to a mysterious company in the Bahamas

FTX case: Alameda would have lent $ 400 million to a mysterious company in the Bahamas

The accomplices of the FTX scandalSam Bankman-Fried (SBF) will have to answer the accusations of embezzlement of FTX client funds to Alameda Research in US court. The information that the media reveals since the collapse of the crypto exchange suggests thatpart of these funds has been invested in companies whose founders have a certain affinity with the founder of FTX.

$400 million from Alameda to a multi-strategy fund

In his article of December 19, the CoinDesk media returns to the document that the Financial Times published at the beginning of the month, and which would contain the list of investments that Sam Bankman-Fried has made. CoinDesk points to an investment of $400 millionwhich Alameda Research reportedly performed in Modulo Capitala relatively unknown company.

Citing sources familiar with the matter, CoinDesk indicates that Modulo Capital would be a multi-strategy hedge fund that two former members of the Jane Street trading company would have founded at the beginning of this year 2022. The company would have traded both cryptocurrencies and traditional financial assets.

She reportedly requested funds from several traditional financial institutions, but Alameda was ultimately said to be her sole investor.

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SBF: an obvious affinity with the old Jane Street

The precision on this passage of the founders of Modulo Capital within Jane Street is important, because Sam Bankman-Fried worked there, just like the former CEO of Alameda, Caroline Ellison. Moreover, the founder of FTX liked to hire alumni of Jane Street for executive or operational positions within his companies, like that of the former president of FTX US, Brett Harrison.

Jane Street is not not the only link which unites Sam Bankman-Fried with Modulo Capital. The hedge fund was based in the Bahamas. He operated there from the same building complex in Albany, where Sam Bankman-Fried and employees of FTX and Alameda resided.

And Modulo Capital is not the only company that had ties to FTX or its founder, and where Sam Bankman-Fried is said to have invested. The document, which the Financial Times published, shows that Alameda allegedly invested $25 million in Toy Ventureswhich is the venture capital fund founded by the product manager of FTX, Ramnik Arora.

Should the crypto industry still expect other revelations on the FTX case? In addition to misusing FTX client funds, SBF allegedly ordered the creating a hidden account in korea to conceal Alameda’s abysmal debts.

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