Alameda gave $400 million to startup based in SBF's Bahamian condo community: CoinDesk

Quick Take

  • Modulo Capital is a multi-strategy hedge fund started in early 2022, operating in the same Bahamian condo community that SBF lived in. 
  • Modulo received one of Alameda’s largest investments at $400 million. 

Modulo Capital, a relatively unknown firm that appears to have a lot in common with Sam Bankman-Fried and Caroline Ellison, received a $400 million loan from Bankman-Fried's investment firm, Alameda Research, CoinDesk first reported. Ellison was the CEO of Alameda

Modulo Capital was founded by three former Jane Street traders, a New York-based company that employed Bankman-Fried and Ellison prior to their moves into the crypto industry. Modulo Capital operates out of the same Bahamian luxury condominium community that the two resided in. 

Modulo Capital is one of the largest investments Alameda Research made, coming in at $400 million. People familiar with the matter told CoinDesk that Modulo approached other institutional finance investors before landing on Alameda. 

Bankman-Fried was arrested on Dec. 12 in the Bahamas for charges including wire fraud conspiracy, securities fraud and money laundering. He has since agreed to be extradited to the U.S. to face fraud charges, The Block previously reported. 

Disclaimer: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from founder and former FTX and Alameda CEO Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions.

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